Clint, you have done it again! This was just the information I was looking for. Determining a solid approach in creating LLC's in each of the 6 states we have property (yea we are a bit late to the party). Having the bulk of our investments being in WY could be a major advantage. CO,AZ,NM,MI and NV round out the rest. We live in Colorado. WY being designated as the "holding company" might be the Ace we have right next door.
Great breakdown on setting up an LLC! One thing to consider when investing internationally, especially in a place like Turkey, is that the legal and tax structures can differ significantly. For example, in Turkey, setting up a company might offer different benefits compared to an LLC in the U.S. Plus, investing in Istanbul's real estate market or other high-growth areas can provide impressive rental yields and capital appreciation. Not to mention, if you're buying for personal use, you can enjoy the vibrant lifestyle Turkey offers. If you're curious to explore Turkey's opportunities, I'm happy to share more insights!
Quick question about this: what if you have to get a loan and then the lender is making you sign personally? Example: in New York on a mortgage, you have to sign off as the member. so if I had a Wyoming LLC, I’d have to put my name, member and then everyone would know that I’m associated with the LLC. Is there anyway to go around this?
Can you be the Manager of WY LLC? As a manager, you don't have to be a member - you could be (technically) the "hired" third party- you could sign on behalf of LLC.
Thanks for breaking it down with so many details. I still have some questions that hopefully you can help me with. If there is the WY holding LLC, a state LLC for Property management, and state LLCs for the REs: is the WY LLC listed as the member and the manager for the RE state LLCs.. or is the property management LLC set up as their manager? I am trying to figure out the correct approach for banking purposes. I already watched your video on the different banking strategies.
Clint, Just found your content and subscribed. Great stuff. You may finally make sense what a holding company is for… Question…. If you have these multiple LLCs owning property in various states and they are set up to be held in a Wyoming LLC, is it necessary to have separate bank accounts for each of these LLCs or can there be just the bank account for the Wyoming LLC managed properties? Thank you!
Great information. My question has to do with signing for real estate loans. If you set up a WY LLC as manager/sole member of a local LLC in California where the property is located, how can I sign for the real estate loan? Or who signs for the loans? Thanks.
@@Dumeme510 or just make up a name. Ask a title company/closing attorney what ID is required to steal you deed when under an LLC. Nothing......... too easy to steal
When you're dealing with a structure where a Wyoming LLC is the manager or sole member of a local LLC, the person who signs for the real estate loan is typically the manager of the local LLC-in this case, the Wyoming LLC. However, because LLCs often have anonymity, banks may require a personal guarantee or additional documentation to verify who is ultimately responsible for the loan. It’s crucial that the person signing has the authority according to the LLC's operating agreement. Speaking of real estate, have you considered exploring opportunities in Turkey? The market in places like Istanbul is booming, and property prices are still relatively affordable compared to other major cities. Plus, the rental yields and capital appreciation prospects are fantastic. Let me know if you’d like more information on Turkish real estate opportunities!
Clint, Thanks for what you do! I may be screwed. In the past I bought a house with an LLC where i was the organizer. The new deed, under a properly structured LLC, will show property changed hands from “old LLC” (current) to “new LLC” (new) for the sum of ~$5 - so it will be obvious that person that owned “old LLC” is same owner as “new LLC”. So given I originally bought house in a flawed LLC, I won’t have good anonymity protection, since any litigator could just look for properties owned by “old LLC and find ones that I owned and have been switched to new LLC Am I missing something? Any way around this?
I have one duplex in a real estate LLC (formed in the same state as the duplex) that is under a WY LLC. Can you show the best method to collect rental income for this scenario? Should I have the real estate LLC collect the rental income or the wyoming LLC? My goal is to save the most money on taxes. If you already have a video explaining this, can you point to it?
An entity structure is unlikely to provide significant tax savings if you only own a single duplex, as the associated costs and complexity may outweigh any potential benefits. However, as your real estate portfolio grows and you acquire additional properties, it may be worth considering the creation of a management entity, such as an LLC treated as a C-Corp. This type of structure can help shift income out of your personal tax bracket and into the entity, potentially lowering your overall tax burden by taking advantage of different tax rates or deductions available to businesses. In the meantime, one of the most effective tax-saving strategies for a property owner like yourself might be conducting a cost segregation study. This process allows you to accelerate the depreciation of certain components of your property, such as appliances, fixtures, or landscaping, enabling you to reduce taxable income more quickly. However, it’s worth noting that the rules around bonus depreciation are changing. Currently, bonus depreciation is being phased down from 100%, but there’s a possibility Congress may reinstate full 100% bonus depreciation after 2025. Depending on the size of your portfolio and financial goals, it may be worth waiting to see if these changes are implemented before proceeding with a cost segregation study.
@@ClintCoons But does it matter which LLC (NC LLC) or (Wyoming LLC) that tenants pay you? Do I even need to have a bank account for the WY LLC as it already owns the NC LLC?
Clint, I talked to my SCarolina SofS and they said that anyone can request and receive Articles of Organization for my LLC, which list me as the organizer. Thus litigators could easily find that I’m a possible owner of that LLC even if I have my Wyoming LLC as the member and a local SC registered agent company as Reg Agent. How to deal with this?
Just learning... I know what an investment is I know what a property is.... I know what a flip is... What do you mean when you use the term, LLC's; Series to add Cells, for Investment properties? Do you mean keeping the property and renting it, or using is as a AirBNB, etcetera.... As Opposed to flipping it and using the S/C Corp Status.
Would you like to learn more about LLCs for real estate and talk to someone? Schedule a free consultation here: aba.link/en5
Clint, you have done it again! This was just the information I was looking for. Determining a solid approach in creating LLC's in each of the 6 states we have property (yea we are a bit late to the party). Having the bulk of our investments being in WY could be a major advantage. CO,AZ,NM,MI and NV round out the rest. We live in Colorado. WY being designated as the "holding company" might be the Ace we have right next door.
Great breakdown on setting up an LLC! One thing to consider when investing internationally, especially in a place like Turkey, is that the legal and tax structures can differ significantly. For example, in Turkey, setting up a company might offer different benefits compared to an LLC in the U.S. Plus, investing in Istanbul's real estate market or other high-growth areas can provide impressive rental yields and capital appreciation. Not to mention, if you're buying for personal use, you can enjoy the vibrant lifestyle Turkey offers. If you're curious to explore Turkey's opportunities, I'm happy to share more insights!
Very informative, thank you !
Glad it was helpful!
Quick question about this: what if you have to get a loan and then the lender is making you sign personally? Example: in New York on a mortgage, you have to sign off as the member. so if I had a Wyoming LLC, I’d have to put my name, member and then everyone would know that I’m associated with the LLC. Is there anyway to go around this?
Can you be the Manager of WY LLC? As a manager, you don't have to be a member - you could be (technically) the "hired" third party- you could sign on behalf of LLC.
Thanks for breaking it down with so many details. I still have some questions that hopefully you can help me with. If there is the WY holding LLC, a state LLC for Property management, and state LLCs for the REs: is the WY LLC listed as the member and the manager for the RE state LLCs.. or is the property management LLC set up as their manager? I am trying to figure out the correct approach for banking purposes. I already watched your video on the different banking strategies.
The WY LLC is the member manager of the property holding LLCs.
Thank you so much❤
You're welcome 😊
Clint,
Just found your content and subscribed.
Great stuff. You may finally make sense what a holding company is for…
Question….
If you have these multiple LLCs owning property in various states and they are set up to be held in a Wyoming LLC, is it necessary to have separate bank accounts for each of these LLCs or can there be just the bank account for the Wyoming LLC managed properties?
Thank you!
Typically we use a separate management LLC with a bank account and one account for the WY LLC or just the WY LLC
Great information. My question has to do with signing for real estate loans. If you set up a WY LLC as manager/sole member of a local LLC in California where the property is located, how can I sign for the real estate loan? Or who signs for the loans? Thanks.
You on behalf of the WY LLC as the member manager or appoint yourself president of the CA LLC and sign on its behalf.
@ClintCoons but if I sign, won't that break the anonymity of having the LLC? Thanks.
@@Dumeme510 You sign as an officer and not a member.
@@Dumeme510 or just make up a name. Ask a title company/closing attorney what ID is required to steal you deed when under an LLC. Nothing......... too easy to steal
When you're dealing with a structure where a Wyoming LLC is the manager or sole member of a local LLC, the person who signs for the real estate loan is typically the manager of the local LLC-in this case, the Wyoming LLC. However, because LLCs often have anonymity, banks may require a personal guarantee or additional documentation to verify who is ultimately responsible for the loan. It’s crucial that the person signing has the authority according to the LLC's operating agreement. Speaking of real estate, have you considered exploring opportunities in Turkey? The market in places like Istanbul is booming, and property prices are still relatively affordable compared to other major cities. Plus, the rental yields and capital appreciation prospects are fantastic. Let me know if you’d like more information on Turkish real estate opportunities!
Clint,
Thanks for what you do!
I may be screwed. In the past I bought a house with an LLC where i was the organizer. The new deed, under a properly structured LLC, will show property changed hands from “old LLC” (current) to “new LLC” (new) for the sum of ~$5 - so it will be obvious that person that owned “old LLC” is same owner as “new LLC”.
So given I originally bought house in a flawed LLC, I won’t have good anonymity protection, since any litigator could just look for properties owned by “old LLC and find ones that I owned and have been switched to new LLC
Am I missing something? Any way around this?
Correct. Best to use a personal property trust as a blocker between your existing LLC and the WY LLC.
For maximum anonymity, shouldn't I establish WY LLC that will be the Manager/sole member of the local state LLC?
Yes
I have one duplex in a real estate LLC (formed in the same state as the duplex) that is under a WY LLC.
Can you show the best method to collect rental income for this scenario? Should I have the real estate LLC collect the rental income or the wyoming LLC? My goal is to save the most money on taxes.
If you already have a video explaining this, can you point to it?
An entity structure is unlikely to provide significant tax savings if you only own a single duplex, as the associated costs and complexity may outweigh any potential benefits. However, as your real estate portfolio grows and you acquire additional properties, it may be worth considering the creation of a management entity, such as an LLC treated as a C-Corp. This type of structure can help shift income out of your personal tax bracket and into the entity, potentially lowering your overall tax burden by taking advantage of different tax rates or deductions available to businesses.
In the meantime, one of the most effective tax-saving strategies for a property owner like yourself might be conducting a cost segregation study. This process allows you to accelerate the depreciation of certain components of your property, such as appliances, fixtures, or landscaping, enabling you to reduce taxable income more quickly. However, it’s worth noting that the rules around bonus depreciation are changing. Currently, bonus depreciation is being phased down from 100%, but there’s a possibility Congress may reinstate full 100% bonus depreciation after 2025. Depending on the size of your portfolio and financial goals, it may be worth waiting to see if these changes are implemented before proceeding with a cost segregation study.
@@ClintCoons But does it matter which LLC (NC LLC) or (Wyoming LLC) that tenants pay you? Do I even need to have a bank account for the WY LLC as it already owns the NC LLC?
@@sarasavage1742 They should pay the NC LLC and yes you will need bank accounts for both entities.
Clint,
I talked to my SCarolina SofS and they said that anyone can request and receive Articles of Organization for my LLC, which list me as the organizer. Thus litigators could easily find that I’m a possible owner of that LLC even if I have my Wyoming LLC as the member and a local SC registered agent company as Reg Agent.
How to deal with this?
You must use a 3rd party to file the articles so your name does not appear on the filed articles.
material participation? that's not a 1065 but sch-E used on your 1040....explain.
Just learning... I know what an investment is I know what a property is.... I know what a flip is... What do you mean when you use the term, LLC's; Series to add Cells, for Investment properties? Do you mean keeping the property and renting it, or using is as a AirBNB, etcetera.... As Opposed to flipping it and using the S/C Corp Status.
I am referring to how the property is held I.e., in a separate cell of the parent LLC. The property can be used as long term rental or Airbnb.