This is so good. I have been learning the past 2 months about RE investing and am getting more and more excited about this adventure. Podcasts/videos like this give me the knowledge and the confidence to start reaching out and getting things started. It's so overwhelming at first and you want to just start rolling but you also need to have direction. Really appreciate you guys and your willingness to share this life changing knowledge. Much love!
As a fellow attorney, it is amazing to me that people are not demanding that he wear a suit tie while giving this discussion. Personally, I enjoy that the attorney on here looks more relaxed. But I have had many negative comments about my page when I was not wearing a suit and tie or even having one book on my shelf that was leaned over as opposed to sitting up straight. Some people just have some weird expectations of what they expect attorneys to be like.
I agree with you 100%. We are losing class and professionalism. I think professionals should look professional. At least people like Grant Cardone wear a button up shirt.
I'd lose him if he WERE wearing a suit and tie while sitting in his dining room....if he showed up like this to court, that might not be the best look - but anything else, you better have at least lost the tie
Wish I saw this video 20 years ago! Two rentals almost paid off completely, sole proprietor, commingling funds, management company does one 1099 combining both properties. Is there even a point trying to separate myself or the properties for that matter, I definitely pierced the veil. Obviously moving forward I’ll start with an LLC. So many videos on buying and doing deals but very few on the groundwork that needs to be done before. Thank you for this! Now I just need to find a video on what to do after you’ve already done everything the wrong way.
It is, but I don't even know what kind of company to work with on something like this. My fear is I'll spend 30k just to sleep better at night, and still not know if I'm actually properly protecting myself lol
Here I am! New years eve learning! Great information and I cannot wait until I'm big enough to need an offshore bridge trust! 11 units in 2 years! Thank you bigger pockets!
I wish he’d cover Series LLCs. Apparently they were created specifically for real estate. My lawyer talked me into one, but I hear other lawyers say investors should have each property in a separate LLC because there isn’t enough cases to refer to on if a Series LLC will hold up in court. I’d love to know more from his perspective. Obviously he’s for separate LLCs, but what does he think about the Series LLC?
Trust > parent company > sub-sister companies that hold properties. Second trust for personal assets. Trusts from either Nevada or South Dakota too, as well as either an LLC from Nevada, Delaware, or Wyoming.
Regarding LLCs, considering banks/lenders may not allow you to transfer the title to an LLC, or if they find out you transferred it without them knowing, they can call up the balance of your mortgage, how do you put your properties into LLCs for that first layer?
Thank you for your clips, I have a few questions if you can help: * I live in California, and I have properties in Tennessee, where should I create my LLC? * Can I create my LLC in one of the following states (Delaware, Nevada, Wyoming) and still holding properties in other states * Where should I create my holding company?
You CAN, create the LLC in WY how Holding and Put the Tennesse property under this Holding in WY. Do you can talk with Clint Coons ( Anderson Advisers) this Guy understand ALL About the Asset Protection.
IMO a person really needs to have a good base understanding of these things. Using professionals is great for ideas and implementing properly. But I see many people hire a professional who implements something not understood. Very messy.
Great pod! How might someone optimize "ECCC", including tax-efficiency, with regard to a Primary Residence that has some STR or month-to-month rental use as well? It seems that a grantor trust (for privacy and/or protection, depending on type) is preferred. All trusts definitionally have a grantor, trustee, and beneficiary(ies), and I believe one could be both the grantor and beneficiary in a revocable trust (unless prohibited by state law?). The beneficiary could also be an entity (eg. Family Trust, FLP, etc.). More nuance centers on how to handle the trustee.
If one seeks unilateral control, I suppose one could make the trustee an entity they own, perhaps choosing the AZ LP (which isn't an LLP, btw) or a WY LLC (solid, but slightly inferior per my research)? One would be the GP of the LP, which is unavoidably on record in AZ... but that's the price of balancing ECCC I guess. The LP could be one's holding company for other rental property LLCs... but should it? What might I be overlooking? Thanks!
When you say we will be out of control of our assets, what would be the point? Unless the goal would be to lose ownership until the case goes away and then re-domesticate it to gain ownership again. But what risk would that come with when you lose ownership.
With the airbnb situation can you have them sign a waiver/release of liability , also with rentals and other kinds of property. Can a personal injury/property damage waiver/release be built into the lease?
I'm just getting started and a huge fan of starting with a plan. I'd rather spend the money upfront so it's easier to scale. Did I understand correctly, that I will need two lawyers? What exactly is a business lawyer? I'll do some research but I just want to understand if I need two lawyers. TIA
That doesn’t even make sense. I need someone to explain to me how a drunk jumping off a balcony leaves a homeowner liable. Nor can I find the case on google.
I am planning on buying a investment property out of state. Should I create a LLC in the state I live or the state the property is in? What are the benefit of having a LLC in the state the property is in?
Great info. But $30k for a trust? 😂. I also don’t understand how an LLC being treated as a disregarded entity for tax purposes gives you less protection? I’ve never heard that before and I’ve studied entities over the last 6 months.
When the LLC is acting as an extension of yourself, the court may say “the LLC and the owner is the same”. It’s not very common, but it could happen in court.
@@angelmariogonzalez813 Right but as a single member managed LLC, it's automatically considered a disregarded entity by default. Profit and loss is still reported on Schedule E. Rental real estate isn't actively managed if I simply have a Tennant in there who pays me every month. That's considered passive. If I used it for AirBnb or operated a bed and breakfast, that'd be actively managed so I'd report profit and loss on schedule C. I could also be taxed as a corporation or have LLC taxed as separate entity. But by default, I don't believe we have a choice if rental is passive.
Question I’m buying my neighbors mobile home aka manufactured home in a couple weeks so it needs some rehab anyone know if sellers concession is still an active thing or should just do cash 12k$ year 1995 this will be my first flip so I’m new new just started listening to bp this past winter sidenote already have a buyer (my brother)
I don't get the point about Blockchain based documents in the fire round questions. Is there really a culture where people are forging legal documents and being successful in court? The idea of holding a deed in Blockchain sounds so wonky and unnecessary.
This wasn’t very eccc lol. Very complex, costly. & honestly seems very sketchy going over seas in a domesday scenario. Kinda makes me think this level of asset protection isn’t for the everyday real estate investor. 🤯 why does this have to be so complicated to protect your assets haha
Answered the questions I didn’t ever think I would have
I didnt know Dave portnoy knows so much about asset protection.
This is so good. I have been learning the past 2 months about RE investing and am getting more and more excited about this adventure. Podcasts/videos like this give me the knowledge and the confidence to start reaching out and getting things started. It's so overwhelming at first and you want to just start rolling but you also need to have direction. Really appreciate you guys and your willingness to share this life changing knowledge. Much love!
As a fellow attorney, it is amazing to me that people are not demanding that he wear a suit tie while giving this discussion. Personally, I enjoy that the attorney on here looks more relaxed. But I have had many negative comments about my page when I was not wearing a suit and tie or even having one book on my shelf that was leaned over as opposed to sitting up straight. Some people just have some weird expectations of what they expect attorneys to be like.
True. Same with investors. Suit, tie, and pull up in the nicest car.
I have this personal stigma about suit and ties. They’re either trying to sell you something or put you in jail. Sometimes losing the suit is good
I agree with you 100%. We are losing class and professionalism. I think professionals should look professional. At least people like Grant Cardone wear a button up shirt.
@@DirtyDan915 pretty judgmental. Some folks like looking good
I'd lose him if he WERE wearing a suit and tie while sitting in his dining room....if he showed up like this to court, that might not be the best look - but anything else, you better have at least lost the tie
I can't wait till I'm in a place where I need to hire this guy to build out my trust.
Wish I saw this video 20 years ago! Two rentals almost paid off completely, sole proprietor, commingling funds, management company does one 1099 combining both properties. Is there even a point trying to separate myself or the properties for that matter, I definitely pierced the veil. Obviously moving forward I’ll start with an LLC.
So many videos on buying and doing deals but very few on the groundwork that needs to be done before. Thank you for this! Now I just need to find a video on what to do after you’ve already done everything the wrong way.
This episode was soooooo good. My favorite part of doing this show is learning from pros like Brian.
This was an amazing episode. WOW! Thank you! I think this was the best, most informative episode of all.
Episode was a GEM and came at the right time. Thanks guys 🙏
Thanks for watching, contact the number above I’ve something big for you⏏️
Just saved this video to my Real Estate folder! Thank you Brian, et al. :)
This episode is absolute gold.
It is, but I don't even know what kind of company to work with on something like this. My fear is I'll spend 30k just to sleep better at night, and still not know if I'm actually properly protecting myself lol
I don't the last time I've learned so much in an hour.
Great video
One of your best shows!
Here I am! New years eve learning! Great information and I cannot wait until I'm big enough to need an offshore bridge trust! 11 units in 2 years! Thank you bigger pockets!
nice episode
should bring him to the podcast as often as u can
A lot of useful info in this video. Thank you guys for taking the time to explain all this 👍
I wish he’d cover Series LLCs. Apparently they were created specifically for real estate. My lawyer talked me into one, but I hear other lawyers say investors should have each property in a separate LLC because there isn’t enough cases to refer to on if a Series LLC will hold up in court. I’d love to know more from his perspective. Obviously he’s for separate LLCs, but what does he think about the Series LLC?
Trust > parent company > sub-sister companies that hold properties. Second trust for personal assets. Trusts from either Nevada or South Dakota too, as well as either an LLC from Nevada, Delaware, or Wyoming.
Looking to close on my second rental hopefully super quick on this seller financing dea!!! Wish me luck my other fellow investors pros and noobs.
Thanks for watching, contact the number above I’ve something big for you📬
This is amazing!!! So important!!
Amazing show
This episode is amazing
Regarding LLCs, considering banks/lenders may not allow you to transfer the title to an LLC, or if they find out you transferred it without them knowing, they can call up the balance of your mortgage, how do you put your properties into LLCs for that first layer?
creative financing.
This is great.
Great information as I prepare to start my journey! Something that came to mind, for each LLC would we need a separate bank account?
Thank you for your clips, I have a few questions if you can help:
* I live in California, and I have properties in Tennessee, where should I create my LLC?
* Can I create my LLC in one of the following states (Delaware, Nevada, Wyoming) and still holding properties in other states
* Where should I create my holding company?
You CAN, create the LLC in WY how Holding and Put the Tennesse property under this Holding in WY. Do you can talk with Clint Coons ( Anderson Advisers) this Guy understand ALL About the Asset Protection.
Right on fellas✊🏻! One question, why do you not have jurisdictional connection to a state that you've acquired a property and set up an LLC? Thanks.
Way to go guys!
FYI he charges $30,000 to get started.
IMO a person really needs to have a good base understanding of these things. Using professionals is great for ideas and implementing properly. But I see many people hire a professional who implements something not understood. Very messy.
Thanks for watching, contact the number above I’ve something big for you☎️
What is your opinion on “Series LLC” to eventually own multiple properties in different states.
God lawsuits are so disgusting these days. 11 million because some dip jumped off a patio.
Great pod! How might someone optimize "ECCC", including tax-efficiency, with regard to a Primary Residence that has some STR or month-to-month rental use as well? It seems that a grantor trust (for privacy and/or protection, depending on type) is preferred.
All trusts definitionally have a grantor, trustee, and beneficiary(ies), and I believe one could be both the grantor and beneficiary in a revocable trust (unless prohibited by state law?). The beneficiary could also be an entity (eg. Family Trust, FLP, etc.). More nuance centers on how to handle the trustee.
If one seeks unilateral control, I suppose one could make the trustee an entity they own, perhaps choosing the AZ LP (which isn't an LLP, btw) or a WY LLC (solid, but slightly inferior per my research)? One would be the GP of the LP, which is unavoidably on record in AZ... but that's the price of balancing ECCC I guess. The LP could be one's holding company for other rental property LLCs... but should it? What might I be overlooking? Thanks!
If LLP holds all LLC, If no bridge trust, if LLP is under attack, all LLCs are in danger right? Who will be the GP? Many advise useing an LLC as GP.
He sounds more like a salesman trying to sell expensive "offshore protection" package.
When you say we will be out of control of our assets, what would be the point? Unless the goal would be to lose ownership until the case goes away and then re-domesticate it to gain ownership again. But what risk would that come with when you lose ownership.
I guess losing ownership temporarily, so as to protect the assets from being taken permanently is the only way to do it.
With the airbnb situation can you have them sign a waiver/release of liability , also with rentals and other kinds of property. Can a personal injury/property damage waiver/release be built into the lease?
This topic should have been covered by a highly experienced real estate investor. Not someone who sells legal services.
This video needs a whiteboard or PowerPoint slides
Do 4 properties even generate $2600 in cash flow to maintain this setup to protect them?! Man…
I'm just getting started and a huge fan of starting with a plan. I'd rather spend the money upfront so it's easier to scale. Did I understand correctly, that I will need two lawyers? What exactly is a business lawyer? I'll do some research but I just want to understand if I need two lawyers. TIA
Thanks for watching, contact the number above I’ve something big for you📬
Excellent
That doesn’t even make sense. I need someone to explain to me how a drunk jumping off a balcony leaves a homeowner liable. Nor can I find the case on google.
Cardano is the way to go 🔥
Can you skip LLC and go LLp directly with properties in different states ?
Hey David. How can I get connected with your mortgage team? Looking to do a cash-out refi under my LLC on an investment property in Ohio.
No amount of tax planning will prevent Probate....
I am planning on buying a investment property out of state. Should I create a LLC in the state I live or the state the property is in? What are the benefit of having a LLC in the state the property is in?
Thanks for watching, contact the number above I’ve something big for you⏏️
Watch pace morby videos about this.
Great info. But $30k for a trust? 😂. I also don’t understand how an LLC being treated as a disregarded entity for tax purposes gives you less protection? I’ve never heard that before and I’ve studied entities over the last 6 months.
When the LLC is acting as an extension of yourself, the court may say “the LLC and the owner is the same”. It’s not very common, but it could happen in court.
@@angelmariogonzalez813 Right but as a single member managed LLC, it's automatically considered a disregarded entity by default. Profit and loss is still reported on Schedule E. Rental real estate isn't actively managed if I simply have a Tennant in there who pays me every month. That's considered passive. If I used it for AirBnb or operated a bed and breakfast, that'd be actively managed so I'd report profit and loss on schedule C. I could also be taxed as a corporation or have LLC taxed as separate entity. But by default, I don't believe we have a choice if rental is passive.
Question I’m buying my neighbors mobile home aka manufactured home in a couple weeks so it needs some rehab anyone know if sellers concession is still an active thing or should just do cash 12k$ year 1995 this will be my first flip so I’m new new just started listening to bp this past winter
sidenote already have a buyer (my brother)
Comercial lender requested. 5 unit apartment
Yelp, I did that wrong(LLC/Trust), it with worth changing? I think it just makes people not want more but if they do . YOLO.
🔥🔥🔥🔥🔥
David, I tried to tell you this before but you are distorting and you either need to bring your amp down or put a limiter in line.
David, you should be drinking more water anyway. But I would be interested in your team.
The gangster renting and killing and owner being liable just got me f@@@ up 😳
Baskin-Robbins has 31 flavors
Dimonds in every minute
.....aaaand how much does it cost to "disconnect" that trust in the doomsday scenario?
I don't get the point about Blockchain based documents in the fire round questions. Is there really a culture where people are forging legal documents and being successful in court? The idea of holding a deed in Blockchain sounds so wonky and unnecessary.
What's Dave Portnoy doing on the show?
🔑
This wasn’t very eccc lol. Very complex, costly. & honestly seems very sketchy going over seas in a domesday scenario. Kinda makes me think this level of asset protection isn’t for the everyday real estate investor. 🤯 why does this have to be so complicated to protect your assets haha
Brandon is missed
Go INC or go home.
Yeah, get a lot of WhatsApp responses on BP.
⬆️⏏️
1st