By: Darius M. Barazandeh, Attorney at Law / M.B.A.
POINT # 1: Many investors believe that they can create a limited liability company (LLC) or file a corporate charter with the state and always have liability protection. This is SIMPLY NOT TRUE. The truth is that each of these business entities (the LLC, the corporation and even the limited partnership) require certain key steps after the structure is created. I always like to compare business entities to a fancy Italian sports car or a new baby…they WILL DEMAND PROPER CARE AND FEEDING! They are fun on the first day, but you had better know how to maintain them. You can’t neglect the baby or take the fancy Italian sports car for a spin without any oil in the engine. If you do then a disaster is coming! Many new business owners believe that because they hired an attorney or service to create their new business entity, the work is done. The truth is that what you do after the entity is created is most important. There are countless nuisances, details, traps which must be understood in order to MAINTAIN LIABILITY PROTECTION.
POINT # 2: If you plan on going into business with another investor or what you might call a partner, consider this: What happens if there is a disagreement? Do you have to sue, do you use mediation, do you have procedures in place to require efforts to settle things out of court? What happens if one of the parties in the business wants to sell their ownership interest? Who will buy it? What will they sell it for? [Click to Read the Full Article…]
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tagged as Darius Barazandeh, Real Estate Investing, Real Estate Liability Protection, Real Estate LLC, Real Estate Tax Savings Posted in Asset Protection,Darius Barazandeh,Expert Interviews
By: Darius M. Barazandeh, Attorney at Law / M.B.A.
The best way to understand a corporation, limited liability company (or even a limited partnership) is to realize that each creates a special legal relationship or privilege between the business owner(s) and the government. These areas of government include:
1. State Government (including state taxing authorities and the state court system)
2. The Federal Government (specifically the IRS and the Bankruptcy court system)
You may be saying, alright Darius, I still don’t understand what you mean by a relationship or privilege. The best way that I can put it is this:
A business entity is a legal relationship which allows for certain privileges. [Click to Read the Full Article…]
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tagged as Darius Barazandeh, Real Estate Investing, Real Estate Liability Protection, Real Estate LLC, Real Estate Tax Savings Posted in Asset Protection,Darius Barazandeh,Expert Interviews,Wealth Creation
The only real solution for real estate investing mistakes is consistent action! You’ve got to stick with it and realize that part of learning process. You WILL make mistakes… and you will continue to make them for as long as you choose to invest.
The key is to learn from each and move on. Add it to a policy and procedure manual so to speak! And avoid that particular real estate investing mistake in the future!
When I first started in real estate, I would document every real estate deal in detail. I would be sure to document: (1) What went well, (2) What didn’t go well!, and (3) How to improve on the next deal.
In this article series, I’ve highlighted 17 mistakes that I made early on and share with you what you can do to avoid making the same real estate investing mistakes I made… (You can get all 17 real estate investing mistakes here) [Click to Read the Full Article…]
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tagged as Get Started in Real Estate, make money in real estate, Real Estate Investing, Real Estate Investing Mistakes, Real Estate Investor Posted in Flipping Houses,Getting Started In Real Estate,Real Estate Investing Articles,Rehabbing Houses
When I first got started in real estate investing, I was the poster child for mistakes! The one thing I did PROPERLY was that I took action. And success favors the people that take action.
The key is to keep moving and not dwell on each individual real estate investing mistake that you make, especially early on! Just keep on going… and take a few minutes to figure out what the lesson was, add it to your knowledge and experience bank, and move on to the next!
In this article series, I’ve highlighted 17 real estate investing mistakes that I made early on and share with you what you can do to avoid making the same real estate investing mistakes I made…
The first mistake new real estate investors make is always thinking the grass is greener on the other side! That “another” market will have better deals, more motivated sellers, and more qualified buyers. Once your business is established with duplicatable systems in place, it can be easy to expand into additional markets. But in the beginning, stick with your targeted farm area. [Click to Read the Full Article…]
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tagged as Get Started in Real Estate, make money in real estate, Real Estate Investing, Real Estate Investing Mistakes, Real Estate Investor Posted in Getting Started In Real Estate,Real Estate Investing Articles
Real estate investing is exciting when you’re just getting started. Real estate is all you can think about and all you can talk about. Your enthusiasm rubs off on others and you instantly start attracting people that want to lend money on for deals, partner with you on properties, joint venture with you on aspects of your business, etc.
The problem is that when you’re so excited, it’s hard to imagine anything EVER going wrong. Why would you need anything more than a handshake and verbal agreement?
Sure, you may be laughing as you read this, but you’ll see… when it comes time to putting a joint venture together, you’ll be eager to get moving along and you just might make this critical real estate investing mistake… and it COULD wind up costing you tens of thousands of dollars, friendships, and worse. [Click to Read the Full Article…]
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tagged as Get Started in Real Estate, joint venture agreement, Real Estate Investing, Real Estate Investing Mistakes, Real Estate Investor, Real Estate Joint Venture Agreement Posted in Asset Protection,Getting Started In Real Estate,Real Estate Investing Articles
A business entity can provide personal liability protection for its owners. The problem is that many people start business without proper instruction on how to run and manage agreements between parties, agreements with customers, internal paperwork, cash controls, voting rules, state and Federal reporting requirements and a host of other issues.
In fact, we have found between 20 to 25 actions, behaviors, or neglected tasks which commonly cause a business structure to be forfeited and can result in personal liability for the owner or owners.
Here are 5 of them:
#1. USING THE BUSINESS FOR FRAUDULENT ACTIVITIES: YOU CANNOT, SHOULD NOT, AND SHALL NOT USE YOUR BUSINESS TO CHEAT OR DEFRAUD: For example, John Smith gathers money from investors claiming that he will develop a new product for his company. [Click to Read the Full Article…]
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tagged as Darius Barazandeh, Real Estate Investing, Real Estate Liability Protection, Real Estate LLC, Real Estate Tax Savings Posted in Asset Protection,Darius Barazandeh,Expert Interviews,Real Estate Investing Articles,Wealth Creation
Real Estate Investing gurus have been peddling websites since the very beginning ranging anywhere from $30-40/month upwards of several $100 per month with sign up fees ranging from “waived with a one year contract” to “$3000+”.
And here’s the kicker, most of these sites are TERRIBLE.
Most of these real estate websites don’t do anything for the investor whatsoever. (Click Here to watch our recent training video on local real estate website traffic)
I can’t tell you how many people I know have bought these websites, spent thousands on them, and have never received so much as a single lead.
The problem is this… MOST of the people selling these real estate investor websites don’t actually know anything about driving real buyer and seller leads, letalone on a local level, which is (a) more effective, and (b) less expensive.
We’re going to focus on setting up a LOCAL real estate investor website [Click to Read the Full Article…]
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tagged as domain names, investor website, local real estate, Real Estate Investing, real estate investor website, real estate websites Posted in Finding Buyers,Internet marketing,Motivated Sellers,Real Estate Investing Articles,Real Estate Marketing,Real Estate Trends
REO investing is moving faster than a speeding bullet!
Over the last few years, many areas throughout the country were flooded with foreclosures that sat on the market for 1, 2, even 3 years; finally forcing the banks to complete the foreclosure process and take the properties back…hence making them REOs.
If you haven’t yet added REOs to your investing business, you are really missing out on a huge goldmine that is just starting to gain momentum.
In order to be successful, however, it’s critical to begin finding buyers for a successful REO business.
Here are 5 fast ways you can find buyers to build your REO Buyer’s list. [Click to Read the Full Article…]
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tagged as Buyer List, Buyers, Real Deals, Real Estate Deal, Real Estate Investing, Real Estate Investor, Real Estate Investors, Real Estate Success, REO, REO Property Posted in Finding Buyers,Real Estate Investing Articles,Real Estate Marketing
