Member Breakdown of New LLC

[Equity]

…  That does a lot more for me then some random person telling me not to do something….

I find this a very curious thread.

You are a first time poster on an internet message board and then complain about getting random advice.  Who exactly did you expect to hear from?

… The truth is you probably have done 10 transactions in real estate, which is less then [sic] me and I am only 25….

Then you claim to know the experience of others (in a rather rude and denigrating manner, I’ll add).

Whether anyone here has done 10 deals, 10000 deals, or wouldn’t know a real estate deal if it hit him in the head is irrelevant.  You asked a question and were given some pretty good and obviously skilled advice by someone who clearly spent a lot of time writing it on your behalf.  Throw it out if you will but consider that if you search hard enough, and only ask people who are close, you’ll almost always get the answer you want to hear.  Does this serve you?
 

As for the $300.  $190 of it goes to the state of Minnesota for the filing fee so they are not nickel and diming me.  It is a friends father who I actually rented from in college so he is in the business.

I’m the last person to claim you get what you pay for.  On a practical matter though, what kind of LLC can you get for $110 ($300-$190 filing fee).  Does this really include an operating agreement?  I can’t imagine, but must note I am thrilled it’s from a friend’s father from whom you’ve rented.  I mean, who needs the internet when you can get this kind of sage legal advice.
 

I am blunt, but I don't intend to be rude. My goal is to make people consider all aspects of what they are doing. That is basically bringing up points they never imagined or how what may seem like a simple matter is more complex.

Sometimes blunt advice is the best advice.

Take heed.

[BLL]

Thanks, Equity.

[danjsavage]

Equity,

I think you missed my point..

I’m not complaining about getting random advice.  I did come on this site to get random opinions.  However, my point was that the response I got was not about my original question.  I did not ask if an LLC was a good idea to start when doing your first deal.  If I had asked that, then yes it would have been a relevant opinion.  But someone shooting off that an LLC is bad idea is basically saying you don’t know what you are doing and a LLC is stupid and worthless.  Which the people who I have met with personally who have been doing this for years say that it is a must do (but that is a separate issue in itself). 

And yes I have been getting advice from successful investors and I did not mean to come off rude.  It is just a lot easier to take advice from someone I know personally in the business then to someone in an online forum.  I asked the question about the LLC member breakdown on here because I wanted an opinion from someone who has experience in lending to LLC's.  Hence that is why I did not go to the investors I know, because they are investors, not financial experts.

The $300 LLC was basically a friend’s father that is willing to help me out.  He was not going to charge me an hourly rate for his services, just the MN state filing fee and a small office fee for their filing.  And I am not sure if you were taking a shot at his advice but he is a very intelligent man who has helped me out in the past many times.  (He is also not a lender and did not know the financial benefits that a bank would recognize when lending to a LLC.)

And blunt advice I can live with. Rude advice however is very disrespectful in my mind.  First off, if you are going to tear apart someone’s business idea you better know exactly what their situation is.  You can not tell them what not to do from a two sentence question that didn’t even mention a question about a business plan (of format).  I also added that BLL was rude because of several other replies of his that I had read in other posts where it seemed like 7 out of 10 times there was a reply that people took offense to.   I said that I did appreciate that BLL took the time to try and explain his opinion, but like I said that was not my question in the beginning. 

There are many intelligent investors on this website, including BLL, Dave, and I am sure you are as well.  I do appreciate all this great info I can refer to and responses that everyone gets.  What I do not appreciate is people talking down to new investors or criticizing their idea or plan when they know nothing about them.  I mean the first question I asked was torn apart and it wasn’t even relevant to my question.  I have seen this many times on this website.  Is it too much to ask to get a question answered in a professional manner that is relevant to the question?  It is like I am back in college where everyone is competing and thinks they are always right. 
Dan

[Dave T]

I’m not complaining about getting random advice.  I did come on this site to get random opinions.  However, my point was that the response I got was not about my original question.  

Dan,

When I go back to the beginning of this thread, I see BLL's very first response to your question.  Let me quote in its entirety.

There are no pros to adding your father. The LLC is also a waste unless you plan to have someone else manage the property.

How is his response NOT about your original question.  It appears to me that his response was succinct and to the point. 

Since you opened your question by saying that you were planning to establish an LLC, BLL advised that your LLC could be a waste of money if your investment strategy involves self-managing your properties.

From that point on, you got defensive and refused to discuss the merits of your plan and the business necessity of an LLC.  Instead, you kept telling us that you trust the advice you were getting.  You did not want to hear anything that contradicted what you were told.

You closed your mind and dismissed BLL as just some random poster who obviously did not know what he was talking about.  You have nothing to complain about here.  I suspect you will further your education in the school of hard knocks, and only then, will you realize that BLL's warnings were right on if you had only been willing to listen.