Collect On A Promissory Note
The Lease Option was behind on the rent when he was out of work. When he resumed work we had him sign a Promissory Note to pay the $6000 balance at $200/m; he also paid the rent. After the lease he moved out and never continued the note payments. He has a stable job. How can we collect on the note. Do we need to get a judgment and garnish wages?
You can turn the debt over to a debt collection agency and hope they can perform. To garnish wages (if allowed) you need a judgment in hand.
Here is a way to find ownership...search llc name on secretary of state web site to find owner. Then type in owner name and find all companies in that owners name. Then search for all names at the county tax assessors site, then you have all properties owned by a owner or their companies. It is very easy to do.
So, to hide under an llc is almost impossible, to put under llc is to "limit liability" suit potential, in my opinion.
If each property is titled to trust; tenant does not know the LLC name. If you search for the LLC how would you know what LLC owns since trust is not recorded.
Or is it better to have a series LLC with 1-2 prop in each
Unless you are doing a lot of illegal stuff or taking a lot of risk, put in an llc and have the properties leveraged, insured, and know a good lawyer (just in case). Really, Me thinks you are a little too worried. Unless your name is Donald Bren, #21 on Forbes list for Real Estate investments, you are probably fairly safe.
Many investors I have spoken with put 2 to 5 in one LLC, but have them leveraged, so there may be up to 5 houses, but nothing of value beyond the debts. A few others, pay cash for the properties, put them in an LLC, but have an umbrella insurance policy and lawyer for protection. Dave Ramsey has mentioned on air that he follows the second option, or some form thereof.