Posted by phil fernandez on October 26, 2003 at 18:46:04:
My LLC’s have just one member each. Me. Check with your state LLC laws.
Incognito - Posted by Sterling
Posted by Sterling on October 26, 2003 at 14:57:35:
As my first real estate deal in 20 years I am looking at the possibility of using my VA eligibility to buy a 4-plex. Part of the VA requirement is that I have to occupy one of the units. The thing is that if I’m going to be living in the building in close proximity with my tenents I’d rather they did not know that I’m the landlord. (I don’t want to be Mr. Furley from THREE’S COMPANY.) Is it possible to have a management company manage the property and conceal my status from the rest of the tentants? Do they often do this?
For that matter, could the person at the management company who handles my account be kept unaware of my status? Taking the idea to extremes, could I contract with the management company through an attorney so that even they think I’m just another tenant?
Another thing I’ve thought of is hiring an actor to pose as the landlord. I know several actors who would probably be good at it and they would not charge as much as a management company.
Re: Incognito - Posted by Dimpil
Posted by Dimpil on October 27, 2003 at 04:42:43:
Hiring an actor? A little dramtic don’t you think?
Re: Incognito - Posted by Lyal
Posted by Lyal on October 26, 2003 at 17:54:48:
Why not just set up XYZ management LLC (with you as the only member of course…). You could also take title in a trust as one more layer of separation.
When you move in, you just tell the other residents that you have an arrangement with the “company that owns the building” to act as the superintendent. Sure beats paying the fees of a management company (which can really cut into the bottom line of a small rental property).
All the best, Lyal
Re: Incognito - Posted by Sterling
Posted by Sterling on October 27, 2003 at 21:51:43:
Dramatic? Maybe. But for one with my E-Mail address it is something that would naturally occur to me.
Re: Incognito - Posted by Sterling
Posted by Sterling on October 26, 2003 at 18:15:41:
Identifying myself as the super defeats the whole idea, which is to not have the tenants rushing to me for everything at any time of day or night, something I would not have to contend with if I lived some distance away. And with a VA mortgage I think I have to take title in my own name (but I’ll look into that). As for an LLC, don’t you need at least three members?
Re: Incognito - Posted by Earl
Posted by Earl on October 27, 2003 at 11:50:53:
It sounds like the issue is you really don’t want the hassles of property mgmt, which is fine - but just realize up front what the issue is. I would look around VERY CAREFULLY for a good property mgr. A good one will understand what you’re trying to do and your being incognito should be no big deal to them. If it is a big deal to them, then look for another manager.
Also the VA rules require you to live there only a year, regardless of how the title is taken. So you could plan to do this arrangement for only a year. Then move out if you wish, keep your VA mortgage, and be completely within the law and the VA requirements. You could then start to manage it yourself, or leave the mgmt company in place if you’ve been happy with them.
I’ve done a similar thing before where I did some of the naintenance on my rentals but I had an agreement with the prop mgr that they would not say I was the owner. So I would just show up when the manager told me to, and say to the tenant, “I’m here to fix your…”. I would take a walk-through the inside of the unit, get to know the tenant, and as far as I know they were never aware that I was the owner.
To a good property mgr what you want to do shouldn’t be a big deal. And also, doing property mgmt requires a lot of attributes. You may be the best handyman in the world or the best bookeeper or even both, but if you don’t have the patience, or if too much a nice guy who gets emotionally involved in everything, then despite your skills, property mgmt may not be for you.
Re: Incognito - Posted by Brent_IL
Posted by Brent_IL on October 26, 2003 at 18:55:23:
When something is amiss, management companies call in someone to fix it. Get a phone box that notifies you when somebody calls the number. If you get a call, handle it by telephoning some other party to fix the problem.
You only need one member in an LLC.
You can place a VA property in trust immediately after closing. The escrow agent can do it for you. If the name of the trust doesn?t contain your name, if anyone asks, you can say that you sold the building, but didn?t want to move.