Why Real Estate Investors Need To Set Up A Property Management Company

In this video, I'm talking about why real estate investors need to set up a property management company.
When you have a property management company, it takes the stress and hassle out of owning real estate while offering a number of other benefits.
🔗 Master Asset Protection: Join our Free Tax & Asset Protection Workshop and learn how to maintain anonymity and protect your assets: aba.link/kwv
Property management is a lot more than just taking care of the property; it's about running a successful real estate business. Not only will a property management company make life easier for you, it will also help you maximize your returns on your investments.
If you found this content valuable, please be sure to give us a thumbs up. Your feedback is important to us, so don't forget to leave your thoughts in the comment section below.
---------------------------------------------------------------------------------------------------------
SUBSCRIBE
www.youtube.co...
~~~~
FREE REAL ESTATE INVESTMENT STRATEGY SESSION
Claim Your FREE 45-minute Investment Strategy Session to receive business planning tips and asset protection. 👉 aba.link/jn0
FREE TAX & ASSET PROTECTION WORKSHOP
Learn about Real Estate Asset Protection from Clint Coons, Esq. and Toby Mathis, Esq. at our next all-day FREE Live Stream. Our attorneys and specialists will answer all of your questions: 👉 Save Your Seat: aba.link/kwv
~~~~
FINANCIAL PLANNING & RESOURCES
📚 Order Your Copy of "Next Level Real Estate Asset Protection: Comprehensive Strategies for Investors" Here: 👉 aba.link/nxtlvl
Download your free copy of Un-Tax Yourself eBook and discover the secret to real estate wealth is in the tax deductions. aba.link/i2q
For financial strategies, podcasts, articles, and details on upcoming workshops, visit aba.link/clintaba
Here’s a little about me and my book Asset Protection for Real Estate Investors
aba.link/clintbio
~~~~
FOLLOW US:
Instagram: aba.link/insta...
Facebook: aba.link/facebook
Twitter: aba.link/twitter
LinkedIn: aba.link/linkedin
~~~~
CONTACT US
Phone: [phone]
Email: [e-mail]
Fax: [phone]
ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
---------------------------------------------------------------------------------------------------------
The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#propertymanagement #llc

[@ClintCoons]

Have questions about this video? Sign up for a free consultation to get your questions answered by the professionals. aba.link/jn0

[@rakishthoughts7377]

Brilliant. This has been my setup for years.

[@ClintCoons]

Awesome.

[@user-ur1hz8in1b]

Great video Clint. My only question is how will you insure the properties? It’s almost impossible to get home owners insurance or PM insurance for your LLC bc the PM doesn’t have any real interest in the property. Any suggestions?

[@jsandhu2683]

Great technique! Thank you!

[@clarkewegener9197]

Great video. With all my properties under one entity I’ve been wondering how to mitigate litigation risk w/o setting up a bunch of separate LLCs. Well done sir. Should be setting up an anonymous LLC and trust situation for ownership soon. Then I believe I’ll make the current entity the PM.

[@ClintCoons]

If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@clarkewegener9197]

@@ClintCoons thank you sir. We’ll be talking soon. Excellent work you guys are doing.

[@nickfazzio5277]

I’m right at this point in my journey. Do I setup a WY Property Management LLC? Or does it have to by a MD - LLC since it the rentals are in MD? Is Anonymity for that property management LLC important? I’ll be the one interviewing the tenants and showing up for repairs.

[@dannysmith4649]

You’ll need to be domesticated in the state you operate in. A WY LLC can’t enter into contracts with a tenant in MD unless it’s registered to do business in MD.

[@jaychung6293]

Thanks Clint. I assume if this LLC is tenant facing, I'm exposing myself and some people would like to know who is running the operations. Would make sense list my name directly as a manager without setting up a separate holding company to anonymotize as much as I can?

[@ClintCoons]

Correct

[@Frankiep72]

Hi Clint, great video! Can you share the specific clauses mentioned in this video that can be beneficial in the lease agreement?

[@ClintCoons]

Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide with you an answer that is unique to your situation. Visit: aba.link/jn0

[@Frankiep72]

@@ClintCoons I already reached out to your firm. And I am in contact with one of your team members. Thanks

[@smyrnachase9961]

There are laws about management companies needing to have a licensed real estate agent, for certain activities, depending on the circumstances.That can put a kink in the property management company, if someone was hoping to run it themselves without employees/paying someone.

[@dannysmith4649]

In the situation Clint describes, the property management company should be able to operate without issue, as most (all?) states allow an unlicensed property management company as long as they are only managing your own properties.

[@ClintCoons]

@smyrnachase9961 the comment posted by @dannysmith4649 is on the mark.

[@Lt_Jordan93]

Should the management LLC be member or manager managed? Do I involved my WY holding LLC with the management LLC?

[@Frankiep72]

Great video! How would you set up the PM LLC? Member Managed or Manager Managed, where the only member is a trust (husband and wife as co-trustees)?

[@ClintCoons]

Thanks for the support. To get the best answer tailored to your specific circumstances, I recommend scheduling a free consultation with my team. Visit: aba.link/jn0

[@SusanDeneeKnowYourCrazy]

After the tenants pay their rent to the PM, LLC, are the funds then immediately xfrd to parent, LLC (series state) - and tight books from there for each child?

[@ClintCoons]

Yes

[@flyingkraut]

Clinton, Anderson has that structure set up for me, but it is set up as a c-corp. You say in the video you would set that up as a disregarded entity… I am confused…

[@ClintCoons]

It depends on your situation. We use both tax elections

[@SusanDeneeKnowYourCrazy]

how best to set up 4 properties (fixing my mistake), all purchased in a pre-existing LLC W/personal guar., not registered to do business in the state I purchased them in. The purchase state does allow LLC Series with cells registered. Properties financed thru a local lender. I actively interview, screen, manage, and prepare(d) the properties for rent with the help of my spouse and vendors. I am hoping this year I qualify for RP. Does it make sense: WY, LLC Manager Managed/partnership - me & spouse - Series, LLC is member-managed by WY, LLC. - The Property Management, LLC - is disregarded - member managed? (me and spouse as members?) and then each cell has its Oper Agree with the PM, LLC?

[@ClintCoons]

There is a lot to unpack here. Suffice to say we can fix it. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@slushere]

If the anonymous WY holding owns the PM LLC in the rentals’ state, and the leases with the PM LLC are written with that clause specifically placing liability on the PM LLC (not the owner), is it even necessary to put the individual properties (currently in my name) in an LLC? Could I just put them into land trust instead? Thanks!

[@ClintCoons]

Unfortunately those types of clauses in residential leases are not enforced. You have some ability to limit the owners liability but generally speaking both the PM and property owner can be sued.

[@nathanviveiros]

Thanks Clint! I have my properties each currently in a separate LLC and I have a WY holding LLC that owns each. I also have a 3rd party Property Management company. In this situation do you still recommend setting up a new LLC to handle the Property Management?

[@ClintCoons]

It would not be necessary

[@sachastayswi]

Hi Clint. I love this. However, my Anderson advisor wanted to set up a PMC taxed as a C-corp with only 1 property (we do short-term rentals). Now we are under contract for STR #3, but we are still with very little cash flow due to initial expenses. Should I ask them to switch this PMC back to a disregarded LLC? I have not used it yet. Thanks!

[@ClintCoons]

If you are not generating much income then the C-Corp status will be of little benefit at this point in time. When you stated "we are still with very little cash flow due to initial expenses" what type of expenses are eating up your cash flow?

[@sachastayswi]

Thank you Clint. We started in September. We had initial setup costs such as furniture, some remodeling. Putting this aside, our operating cash flow was flat for 2023.

[@AberrantArt]

Clint, i was told I CANNOT have anonymity for an Arkansas LLC. I'm told the secretary of state will not allow a Registered Agent address for the business address. I also see my personal name and holding LLC info on the Articles. Is there any clever solution you have for this??? 🤔

[@ClintCoons]

Yes. Use a virtual business address for the AR entity. Set up the AR entity as member managed by a WY holding LLC.

[@AberrantArt]

@ClintCoons Thank you Clint. With my personal name on the virtual address, will that cause anonymity issues?

[@aaronstein4462]

I have a WY LLC which owns the MN LLC where the properties are held. Would I want the WY LLC to own the MN Property Managment LLC or the MN Property Managment LLC in my own name?

[@ClintCoons]

I would keep the PM in your name

[@jimdandy8996]

But then you have to spend time dealing with maintenance, book keeping, etc., rather than hiring an actual management company.

[@ClintCoons]

Yes but that time will help you qualify as a real estate professional.