When Should I set up a LLC for Real Estate?

[@sethnugent84]

I like the new shorter video length and short video intro, as well as the good content/info.

[@ClintCoons]

Awesome, thank you!

[@advianjoseph]

I had this question on my mind for a while, so thank you for clarifying it. I really enjoy and appreciate all your videos.

[@ClintCoons]

You are so welcome!

[@SlowMotionMedia268]

Thank you for the information, I’ve learned a lot and able to put other people on to your videos. Knowing is half the battle.

[@ClintCoons]

Excellent!

[@myxcapital4179]

Droppin serious knowledge, keep up the good work!

[@ClintCoons]

Thanks, will do!

[@megahash1833]

Perfect! Will be hitting up Udemy soon and grabbing your course there as well. Thank you!!

[@ClintCoons]

Hope you enjoy it!

[@bolis925]

Thank you for this video. I own a home in California that'll be occupied by a tenant for the first time next moth. I was stressing for the last 2 days researching if I should transfer it to an LLC. I'm looking for my second property now that'll be my new primary residence. I'm thinking I'll keep my first home in my name and also get my second in my name to get better rates. I'll eventually transfer my first to an LLC.

[@ClintCoons]

Yes or consider using a WST as a second option.

[@manjushetty2029]

great video! can you please make a video about a good structure for investing in multifamilies? i am specifically interested in out-of-state multifamilies from california. also what structure do you recommend for syndication with family/friends?

[@ClintCoons]

Check out this video: kzbin.info/www/bejne/iHumdH6sp7eIkNE

[@dexagalapagos]

Great videos but got a bit of a sticker shock from their fees for setting things up (in the 5 digit territory), plus significant ongoing annual fees.

[@SIDdaGreat]

For what he's talking, that sounds about right and what I'd expect to pay

[@dexagalapagos]

@@SIDdaGreat Yeah a very expensive way to file a couple of forms.

[@00sra]

Would you want a Wyoming LCC and the anonymity perk for wholesaling?

[@ClintCoons]

Yes. Have you watched my video on Wholesaling?

[@00sra]

Real Estate Asset Protection not many. I know you’ve said that an WLLC can help with marketing your wholesale deals because if a seller sees there property online, they won’t know who to go after since your name won’t show up in the llc. But I’m asking if it’s worth it because i feel like there shouldn’t be an issue if everything is explained.

[@cmdv42]

What if we want to start building corporate credit to use for transactional lending or JV deals with wholesalers providing their earnest money?

[@ClintCoons]

You can but I would avoid adopting an anonymity strategy if you are looking to build credit.

[@cmdv42]

@@ClintCoons gotcha💯✨

[@treejohnson89]

ok I know you may have said this but here is where am confused, in another video you mentioned to open up an LLC before you invest in a property so you wont have to transfer it over and to have the protection of LLC, then on this video you say purchase the property then set up LLC, maybe Im making it harder but am trying to understand whats the right/best choice. i want to invest in rental, residential, flipping, air bnb etc, but in another state where i dont live. But i have not investing in anything as of yet

[@ClintCoons]

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

[@ocpomtown]

Clint, what strategy do you recommend for properties in California that were acquired under a 1031 exchange? The same taxpayer requirement must be met to keep the exchange valid. Also, the properties have all been held for several tax years since the exchange.

[@ClintCoons]

Depends on the property - residential or commercial? If it is commercial I would use an LLC taxed as a partnership. If residential I would set up a Wyoming Statutory Trust or disregarded LP to hold the property.

[@ocpomtown]

@@ClintCoons They're residential. They're also presently held under an S-Corp. So a Land Trust would not be appropriate?

[@ClintCoons]

@@ocpomtown A land trust does not offer asset protection so I would use a Wyoming Statutory Trust owned 100% by the S-Corp. This plan will avoid the $800 franchise tax per entity and give you asset protection for each property.

[@ocpomtown]

@@ClintCoons Thanks so much for the great info. Sorry, but there's one more wrinkle. The S-Corp shares are part of an estate plan and will be inherited in a few years. In order to capture the step-up in cost basis for the properties, the S-Corp must be dissolved and the properties re-titled in the same tax year. How would that affect this strategy? Is it easier to just wait until the inheritance takes place?

[@ClintCoons]

Not an issue because the property passes via the LLCs to the shareholders. The distribution of the LLCs' holding real estate is treated as a deemed sale at the corporate level resulting in a gain to the S-Corporation. This gain is passed through to the estate however the stock is stepped upon death so the deemed sale will increase the basis of the shares in excess of the FMV thus giving you sufficient basis. Because the basis will exceed the FMV of the stock the estate will typically be treated as having a loss. This loss will offset the estate’s gain from the deemed sale at the corporate level and the property you receive (through the LLC) will equal the property's FMV giving you a full step up.

[@xavi-12]

I have a question so. Can I transfer my own house to a LLC even if I don’t have any Business? Good, bad and consequences.

[@ClintCoons]

I would recommend against transferring a personal residence to an LLC. The LLC is a business entity. Placing your personal residence into a business entity defeats its intended purpose and would most likely not be respected.

[@xavi-12]

@@ClintCoons thank you.

[@alejandroarmijo7638]

Can you put your personal residence in an LLC if your are planning on renting it out because you're are looking to buy a new personal residence.

[@ClintCoons]

@@alejandroarmijo7638 Check out my video on how to handle your personal residence. See kzbin.info/www/bejne/g4ipq3R7bNyoac0

[@xavi-12]

@@ClintCoons awesome answer... this one is better. Thank you

[@tai9499]

Can you move your first conventional loan on a SFR home into an LLC later? Say if it was in your name initially, can the name be moved into the LLC?

[@ClintCoons]

You can move the property but not the loan.

[@lisamyerspodcast]

Do you need an LLC for each state if you are purchasing in those two differnet states?

[@ClintCoons]

You can register an LLC in two different states however, I prefer to keep properties separate in different LLCs and this would necessitate 2 LLCs.

[@starr8111]

I should setup an S coro to wholesale? And a C corp for investing in my real estate education?

[@ClintCoons]

Not necessarily. It will depend on your tax bracket, how you plan to use the income from your investing, how you want to look to lenders if you plan to buy and hold, etc. Many different angles to consider.

[@daveandaya4626]

Hi Mr. Clint , can I set or form LLC for rental property from another State if I live another State? When I tried to applied they asking business Address the State or city of my rental property to form LLC but the problem is I dot have just the rental property. Thanks Dave

[@ClintCoons]

On what form? Articles of organization for the LLC?

[@daveandaya4626]

To form business Entity LLC from my rental property in State of Illinois but I live in California. I been subscribed watching all your videos but some of that you mentioned P.O. Box to protect my entity. Any link of your business services?

[@ashleyhill3893]

Is there a way where I can set up a consultation to speak with you directly?

[@ClintCoons]

Reach out to [e-mail] to schedule.