Learn about Real Estate & Asset Protection from Clint Coons, Esq. and Toby Mathis, Esq. at our next all-day free Livestream 9 am to 4 pm PT. on Saturdays. Our attorneys and specialists will answer ALL questions: 👉 Save Your Seat: aba.link/1aab9d
My wife and I recently bought our first “flip” house. We are in the process of rehabilitating now. It’s a solid house, just dated as it was built in 1970’ish and never updated. We bought for cash through a newly formed LLC. In the area, literally on the same street homes range from just over 600k to just over a million. It’s a street that intersects a major lake so the closer you get to the lake generally the value goes up. This house does have deeded access to a private beach. There is an amazing bike path, boat launch and parks within shouting distance of the house. It was so well preserved with oak flooring almost throughout that the cost to rehab will be around 100k including new kitchen, all new doors inside and outside, and new paint inside and outside. We’ve also opened up the floor plan by removing some walls to add light. It’s a b neighborhood at least. There’s a boat launch on the street as well. In words I can’t even project how nice the area is, we got it through family and it was never appraised and never hit the market. Since aquiring the property for half value required paying cash and no inspection, we did pay cash at $300k. This is in Vermont and is like a vacation location. I know the first rule of property investment is not to fall in love with a property but I really do love it. It’s right on a bike path that has a 6 mile boardwalk that follows the lake with amazing views. It has a new furnace, new hot water tank, we are going to fully appliance the place with stainless appliances and new counters and cupboards. Every door we are replacing inside and outside. Every room is being done and the exterior is getting a full repaint. The roof is brand new. We are rebuilding the back deck and building a new one in front replacing the cement approach. It has the largest yard on the street and has a paved basketball court in the back yard. We are thinking to flip it but using it as leverage seems like a very tantalizing option. We own the place which does give a feeling of freedom but we also are paying electricians, sheet rock guys, plumbers and landscapers. Our company does most ourselves but cannot do everything as it requires master plumbers and master electricians for certain changes in our vision. We will not lose on it. My question to you is how can we get more out of this investment.
I'm starting to just hit the Like button before I hit the Play button, 'cause I know Clint's content is going to be good!! I love the discussions covering the various considerations involved in the different approaches one might take in their business planning. Everyone is going to make mistakes on their own, but you want to reduce those self-inflicted mistakes as much as possible by learning from others first!! Thanks again for the helpful content!!!
Can you please make a video explaining how realtors should structure their business? Best taxation opinion (making over $40k) and having inside and outside protection. I would appreciate it! Thanks!
@@ClintCoons Yes! I will be waiting for more educational videos from you. Meanwhile, I really love the work that you do for your audience and subscribers. Would you be up for a talk about a possible partnership? And if so, can I email you about it? Let me know.
Great stuff, Clint! I'm going to be doing a cash-out-refi to pay off the hard money lender on a commercial multifamily. I'm also hoping to get back most if not all of the money back I put in for rehab, but banks seem to be insisting on only getting the HML paid off. Do banks' lowball values on properties when it's a cash-out-refi as opposed to selling? And what mainly do they scrutinize in the process of the cash out refi?
R Cruz I am not sure on this one. If you work with a good broker he should try and get you the best valuation. The lender will look at comps, and income from the property, tax returns, your financial statement, and financial ratios, - in my experience.
Great information Clint. When we use your anonymity strategy, how do we keep our names off the signature pages of purchase and sales contracts? We still have to sign as manager/member. Is there someone else that can sign in our place?
If you set your house ownership this way. what happen if you have a squatter situation, I reckon it would be quite complicated to prove that you own the house and they might have better chance to get your house through adverse possession
I have a question, if I have the cash on hand to buy a property do I have to put that into the bank first and from there into escrow or pay the seller directly with a Real Estate Attorney present ? I have no idea how this is properly done and I would appreciate your advice. Thank you
Not at all. You can bring the cash to closing from any source when you are buying with cash. Opening escrow and using an attorney is smart because it will ensure you get good title to the property.
Could you still keep your name off of the chain of title for a cash purchased property that you will aquire a loan on, with the utilization of a land trust?
•If I want to set up a Series LLC for rental properties, can I set up the Parent LLC out of Wyoming and the Cell LLC out of Wisconsin? •Would this in fact give me identity protection since the Parent LLC is based out of Wyoming? •Also, is this even allowed if Wisconsin doesn’t allow Series LLC? (I currently reside in Tennessee which allows Series LLC but I’m purchasing in Wisconsin which doesn’t and in previous videos you’ve stated to set up the LLC in the state the property is located). •Do I Foreign File the LLC in the state of Wisconsin to operate and do business in that state? •Also, if the Parent company is out of Wyoming and the Property LLC is in Wisconsin would I pay two annual fees? Please advise!
If you are purchasing in WI and you want anonymity then your best structure would be to set up a WY holding LLC and have it be the member/manager of a WI LLC. I would not use the series structure because WI does not provide protection for the cells under its statute. If you set up a WY LLC then register it in WI, you will lose the benefits of WY e.g., anonymity, charging order protections
I would use a land trust into an LLC. The issue with using an LLC with house hacking is the type of loan you obtain will most likely restrict the property transfer to an LLC for one year (freddie/fannie guidelines).
If you are just planning to pay cash for your personal home and have no plans to do a cash out, would you just do the Wyoming llc? If you have no actual business does it matter with the llc? Being pierced etc
So, in an example like this, we would be paying double fees to create two LLC's and double maintenance fees each year? Or, am I missing something? Thanks
When your foreign file an LLC in another state you will pay an additional filing fee but you do not pay double legal fees to set up the LLC. For example, if the attorney charges $2k to set up the LLC then you will incur state A filing fee and the filing fee to register in state B.
If the "state" where the property is located, how do you KNOW for sure that LLC in the state where the LLC is set up will NOT require personal names on the LLC application? What's the point of having it owned by a Wyoming LLC if the state the home LLC is located does NOT have total privacy features????? The true privacy features means NOWHERE in the LLC paper trail is my name ON it. Wyoming has that feature but if the residence is located in a different state, those state's rule apply in the forming of that particular LLC............. do they not?
I really like ur video! Thank you. When you do cash purchase, Brrrr. seasoning period for the refi is mandatory. Now, if the property appraisal comes much higher than your purchase price, you have room to refi that portion right away? Any tips to avoid the cash all tied up for 6 months? Thank you.
If I buy under a llc, can I transfer the property under my personal name later? If you wanted to leave that property under your will but it’s under the name of the llc, how would it work?
Wouldn't the records still show the fact that you moved the property to YOUR LLC with a recorded quit claim deed or just a 1$ transaction b/w you and this mysterious LLC?
This video helped me out a whole lot because I am planning to re-fi under my owner. Question, does it matter if the agreement is in the LLC name? Can I assign it to myself at closing so I can be on title for the future refi?
This was awesome!!! Thank u so much! I just bought my first investment paid cash ....want to do cash out refi....after all remodel is done...so at that point would i put in a LLC? Going to rent it out! Thnk u
Thank ok...question ive watched this several times...i need to understand the Wyoming LLC? So essentially I have 2 LLC'S? I live in Michigan will b done with our remodeling in May we to do the cash out refi.. is there a company you use in Wyoming? So doni get one in Michigan and another in Wyoming Im trying to understand this! Thank you
That is correct but it is geographically targeted. If you buy in Boston, Chicago, Dallas-Fort Worth, Honolulu, Las Vegas, Los Angeles, Miami, New York City, San Antonio, San Diego, San Francisco, Washington, D.C., Laredo, Houston, Northern Virginia and Maryland (DMV) area, Baltimore, Fairfield County Connecticut and Seattle. The program was originally set to expire in April but it was extended to October.
I have a Wyoming Llc and when I tried put wy Llc as a managing member in Massachusetts Llc then Massachusetts state is not accepting it by saying that wy llc is not registered in Massachusetts. Is this true , any solution for this.
I went to buy a coop in nyc listed $489,000 over 90-days listed I offered $460,000 CASH the realtor said no $480,000 is lowest cause there was already an offer $480,000 on loan but it was denied & by giving it any lower it brings down the value of the other coops in building …. “I WAS LIKE WTF” HONESTLY I NEED ADVICE DID U EVER HEAR OF SUCH “BULL$HIT”
A question has been long I wanna ask. Someone told me you're allowed to close only 2 properties under your own name. What if I have 5 - 10 rental properties and so on to do cash-out-refi, do you have any solution for that? From my understanding, even the 1st two under your own name transferred to LLC. In the lenders eyes they still see you own the 1st two.
If I buy a rental property with the mind set to do a cash refi I would buy the place in my name get the cash refi once all is settled can the property then be switched to an Llc within my state and then setup a Wyoming Llc for the anonymity?
You can use a WY LLC to hold property in any state but if you rent the property then you will most likely need to register the WY LLC in the state where the property is located.
@B W I mean, if it's going to be owner occupied, that is good protection in itself, but if you are going to rent it out, LLC is the way to go for liability protection
Can I be your image manager. I believe you are an expert and I believe I can give you a RUclips image makeover. There are a couple of changes you can make to bring more views to your channel through organic reach.
Learn about Real Estate & Asset Protection from Clint Coons, Esq. and Toby Mathis, Esq. at our next all-day free Livestream 9 am to 4 pm PT. on Saturdays. Our attorneys and specialists will answer ALL questions: 👉 Save Your Seat: aba.link/1aab9d
My wife and I recently bought our first “flip” house. We are in the process of rehabilitating now. It’s a solid house, just dated as it was built in 1970’ish and never updated. We bought for cash through a newly formed LLC. In the area, literally on the same street homes range from just over 600k to just over a million. It’s a street that intersects a major lake so the closer you get to the lake generally the value goes up. This house does have deeded access to a private beach. There is an amazing bike path, boat launch and parks within shouting distance of the house. It was so well preserved with oak flooring almost throughout that the cost to rehab will be around 100k including new kitchen, all new doors inside and outside, and new paint inside and outside. We’ve also opened up the floor plan by removing some walls to add light. It’s a b neighborhood at least. There’s a boat launch on the street as well. In words I can’t even project how nice the area is, we got it through family and it was never appraised and never hit the market. Since aquiring the property for half value required paying cash and no inspection, we did pay cash at $300k. This is in Vermont and is like a vacation location. I know the first rule of property investment is not to fall in love with a property but I really do love it. It’s right on a bike path that has a 6 mile boardwalk that follows the lake with amazing views. It has a new furnace, new hot water tank, we are going to fully appliance the place with stainless appliances and new counters and cupboards. Every door we are replacing inside and outside. Every room is being done and the exterior is getting a full repaint. The roof is brand new. We are rebuilding the back deck and building a new one in front replacing the cement approach. It has the largest yard on the street and has a paved basketball court in the back yard. We are thinking to flip it but using it as leverage seems like a very tantalizing option. We own the place which does give a feeling of freedom but we also are paying electricians, sheet rock guys, plumbers and landscapers. Our company does most ourselves but cannot do everything as it requires master plumbers and master electricians for certain changes in our vision. We will not lose on it. My question to you is how can we get more out of this investment.
I'm starting to just hit the Like button before I hit the Play button, 'cause I know Clint's content is going to be good!!
I love the discussions covering the various considerations involved in the different approaches one might take in their business planning. Everyone is going to make mistakes on their own, but you want to reduce those self-inflicted mistakes as much as possible by learning from others first!! Thanks again for the helpful content!!!
Thanks for the great comments.
This is way too confusing, I wish to see a video about how to buy property with cash in a simple explanation
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
He did draw pictures though.
It wasn't that confusing....It's all about good decision making
I agree !
I didn’t understand anything what you said about buying for cash
Very confusing
Another great video. Can you explain why it's best to put the property in an LLC specifically in the state it's located in?
Because God forbid you have to evict a tenant, and your out-of-state LLC isn't registered to do business in that state, that can be costly
For the reason R Cruz stated and because renting property is considered doing business in the state and you must register.
Can you please make a video explaining how realtors should structure their business? Best taxation opinion (making over $40k) and having inside and outside protection. I would appreciate it! Thanks!
Will do. Thanks for the idea.
Thank you for the knowledge you give.
Marblegrass
Thanks for watching.
I love this episode. I didn't know about this and you gave us great information. Any more videos like this?
Absolutely - check out my channel
@@ClintCoons Yes! I will be waiting for more educational videos from you. Meanwhile, I really love the work that you do for your audience and subscribers. Would you be up for a talk about a possible partnership? And if so, can I email you about it? Let me know.
What happen if you have already bought the property for cash without a lender and he’s your own money can you put it in an LLC
Absolutley.
Outstanding video. My goal is to buy a investment property with cash so this was very helpful.
Glad it was helpful!
Great stuff, Clint! I'm going to be doing a cash-out-refi to pay off the hard money lender on a commercial multifamily. I'm also hoping to get back most if not all of the money back I put in for rehab, but banks seem to be insisting on only getting the HML paid off. Do banks' lowball values on properties when it's a cash-out-refi as opposed to selling? And what mainly do they scrutinize in the process of the cash out refi?
R Cruz I am not sure on this one. If you work with a good broker he should try and get you the best valuation. The lender will look at comps, and income from the property, tax returns, your financial statement, and financial ratios, - in my experience.
Great information Clint. When we use your anonymity strategy, how do we keep our names off the signature pages of purchase and sales contracts? We still have to sign as manager/member. Is there someone else that can sign in our place?
No you will have to sign on the PSA unless you find a person will to serve as an officer or agent of your LLC.
This information is not public record so it shouldn't matter. Why do you want to use an anon?
Can I hire you?
Always great info from clint and the Anderson guys
Thanks.
If you set your house ownership this way. what happen if you have a squatter situation, I reckon it would be quite complicated to prove that you own the house and they might have better chance to get your house through adverse possession
You need to get the sheriff to kick them out.
I have a question, if I have the cash on hand to buy a property do I have to put that into the bank first and from there into escrow or pay the seller directly with a Real Estate Attorney present ?
I have no idea how this is properly done and I would appreciate your advice. Thank you
Not at all. You can bring the cash to closing from any source when you are buying with cash. Opening escrow and using an attorney is smart because it will ensure you get good title to the property.
@@ClintCoons thank you for your advice on this matter.
Could you still keep your name off of the chain of title for a cash purchased property that you will aquire a loan on, with the utilization of a land trust?
Yes
•If I want to set up a Series LLC for rental properties, can I set up the Parent LLC out of Wyoming and the Cell LLC out of Wisconsin?
•Would this in fact give me identity protection since the Parent LLC is based out of Wyoming?
•Also, is this even allowed if Wisconsin doesn’t allow Series LLC?
(I currently reside in Tennessee which allows Series LLC but I’m purchasing in Wisconsin which doesn’t and in previous videos you’ve stated to set up the LLC in the state the property is located).
•Do I Foreign File the LLC in the state of Wisconsin to operate and do business in that state?
•Also, if the Parent company is out of Wyoming and the Property LLC is in Wisconsin would I pay two annual fees?
Please advise!
If you are purchasing in WI and you want anonymity then your best structure would be to set up a WY holding LLC and have it be the member/manager of a WI LLC. I would not use the series structure because WI does not provide protection for the cells under its statute. If you set up a WY LLC then register it in WI, you will lose the benefits of WY e.g., anonymity, charging order protections
If I want the first property to be a house hack, can I use the same anonymity structure?
I would use a land trust into an LLC. The issue with using an LLC with house hacking is the type of loan you obtain will most likely restrict the property transfer to an LLC for one year (freddie/fannie guidelines).
If you are just planning to pay cash for your personal home and have no plans to do a cash out, would you just do the Wyoming llc? If you have no actual business does it matter with the llc? Being pierced etc
You can do that but if the LLC lacks a business purpose then it could be pierced. Also make sure the LLC is disregarded.
So, in an example like this, we would be paying double fees to create two LLC's and double maintenance fees each year? Or, am I missing something? Thanks
When your foreign file an LLC in another state you will pay an additional filing fee but you do not pay double legal fees to set up the LLC. For example, if the attorney charges $2k to set up the LLC then you will incur state A filing fee and the filing fee to register in state B.
Does taking out a cash refinance loan put a Lien on the property? What is the highest interest rates on these loans?
Yes it does and it will depend on the lender.
If the "state" where the property is located, how do you KNOW for sure that LLC in the state where the LLC is set up will NOT require personal names on the LLC application? What's the point of having it owned by a Wyoming LLC if the state the home LLC is located does NOT have total privacy features????? The true privacy features means NOWHERE in the LLC paper trail is my name ON it. Wyoming has that feature but if the residence is located in a different state, those state's rule apply in the forming of that particular LLC............. do they not?
All I can say is if you want anonymity you can not set it up yourself. If properly established you will not have paper trail leading back to you.
I heard there is a new requirements for cash transactions under LLC?
Could you be more specific
I really like ur video! Thank you. When you do cash purchase, Brrrr. seasoning period for the refi is mandatory. Now, if the property appraisal comes much higher than your purchase price, you have room to refi that portion right away?
Any tips to avoid the cash all tied up for 6 months? Thank you.
Look to work with a community bank and avoid Freddie Fannie loans.
If I buy under a llc, can I transfer the property under my personal name later? If you wanted to leave that property under your will but it’s under the name of the llc, how would it work?
The LLC will pass to your beneficiary under your will and with it the property it holds.
Hi,
How about buying Property in Cash with land trust , is possible?
Absolutely
Rookie question: why is anonymity important?
To make an attorney only focus on your insurance and not your assets - because he cant find them.
@@ClintCoons could you explain further? What attorney? Under what circumstances?
What happen if you have already bought the house cash out with your own money not borrow and you want to put it in the LLCs can you do that?
Yes but if you plan to do a cash out refi wait until the refi is complete.
How can you do a cash out refi when the house is purchased cash?
Wouldn't the records still show the fact that you moved the property to YOUR LLC with a recorded quit claim deed or just a 1$ transaction b/w you and this mysterious LLC?
Absolutely. Not many people search title transfers only who is on title.
This video helped me out a whole lot because I am planning to re-fi under my owner. Question, does it matter if the agreement is in the LLC name? Can I assign it to myself at closing so I can be on title for the future refi?
Yes you can close in your own name by creating an addendum to the PSA.
What are examples of "community banks"? Would credit unions fall into this category? Thanks in advance.
A community bank is a local bank that serves a local community
This was awesome!!! Thank u so much! I just bought my first investment paid cash ....want to do cash out refi....after all remodel is done...so at that point would i put in a LLC? Going to rent it out! Thnk u
yes. Congrats on the deal.
Thank ok...question ive watched this several times...i need to understand the Wyoming LLC? So essentially I have 2 LLC'S? I live in Michigan will b done with our remodeling in May we to do the cash out refi.. is there a company you use in Wyoming? So doni get one in Michigan and another in Wyoming Im trying to understand this! Thank you
@@kimvanloozenoord2540 Yes we set these up. If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
I heard there are new requirements for cash transactions in the name of LLC's over $300K purchase price, is that true?
That is correct but it is geographically targeted. If you buy in Boston, Chicago, Dallas-Fort Worth, Honolulu, Las Vegas, Los Angeles, Miami, New York City, San Antonio, San Diego, San Francisco, Washington, D.C., Laredo, Houston, Northern Virginia and Maryland (DMV) area, Baltimore, Fairfield County Connecticut and Seattle. The program was originally set to expire in April but it was extended to October.
@@ClintCoons So, If some one want to buy real estate in Los Angeles over $300,00 CAN NOT BUY UNDER llc, how about buy under land trust?
Is the scenario of the cash out refi the same as taking out a HELOC on the property ?
No they are different types of loans.
I have a Wyoming Llc and when I tried put wy Llc as a managing member in Massachusetts Llc then Massachusetts state is not accepting it by saying that wy llc is not registered in Massachusetts.
Is this true , any solution for this.
Yes we use a paper filing with custom prepared articles that do not require the disclosure of the member.
I went to buy a coop in nyc listed $489,000 over 90-days listed I offered $460,000 CASH the realtor said no $480,000 is lowest cause there was already an offer $480,000 on loan but it was denied & by giving it any lower it brings down the value of the other coops in building …. “I WAS LIKE WTF” HONESTLY I NEED ADVICE DID U EVER HEAR OF SUCH “BULL$HIT”
Yes. Try to reach out to the owner directly.
A question has been long I wanna ask. Someone told me you're allowed to close only 2 properties under your own name. What if I have 5 - 10 rental properties and so on to do cash-out-refi, do you have any solution for that?
From my understanding, even the 1st two under your own name transferred to LLC. In the lenders eyes they still see you own the 1st two.
Most lenders will permit up to 10 properties per borrower.
Dave Ramsey brought me here lol
very good information Anderson I would like to know your location for an advise
If you would like a FREE 30-minute consultation, you can request one here
- aba.link/30minSession
Thanks
Maggie Faragher
Thanks for watching.
Can someone share the websites for me to see it ?
If I buy a rental property with the mind set to do a cash refi I would buy the place in my name get the cash refi once all is settled can the property then be switched to an Llc within my state and then setup a Wyoming Llc for the anonymity?
Correct
@@ClintCoons
Thank you
Does it matter that the refi was done in my name and the house was deeded into 2 Llc’s afterwards?would this have a problem with the bank ?
Can I obtain an wyoming llc in a different state like Virginia ir florida ir does it have to be within the state?
You can use a WY LLC to hold property in any state but if you rent the property then you will most likely need to register the WY LLC in the state where the property is located.
If I want to pull cash out, can I take the property out of the LLC and deed it back into my name?
I believe that can create a taxable event
@@rcruz401 it almost seems like it’s not worth putting property in a LLC
@@rcruz401 I do know know you lose your homestead protection if it’s in an LLC.
@B W I mean, if it's going to be owner occupied, that is good protection in itself, but if you are going to rent it out, LLC is the way to go for liability protection
Yes provided your LLC is not taxed as a S or C corporation.
❤
RS Enterprises
Thanks for watching.
Can I be your image manager.
I believe you are an expert and I believe I can give you a RUclips image makeover. There are a couple of changes you can make to bring more views to your channel through organic reach.
Pretty sure he is more established on RUclips than you are… He could give you a few pointers not the other way around