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LLC - Limited liability company

In-depth discussion of LLC Because there are a lot of questions about the subject of LLC I would like to hear from people who have LLC and they were in a situation that the LLC protected * or * went through a situation that if there was an LLC she would protect them. Request: First-hand stories and not “I heard. . . "Or" my friend "- I know a lot of them !!!!…

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How will we reach financial well-being Hello friends, for a change I decided in this post not to write specifically about real estate itself but about real estate as a way or means by which we can reach financial well-being. Investing in real estate as a whole is actually purchasing assets, only in Israel because it is a significant cost, only a small handful of the population is considering doing it today, most of them prefer to keep the money in the bank...

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  1. It is also highly recommended that you ask the management company for a request from each tenant
    Interest insurance
    Which would cover the personal injury of a person who is injured or even if he has an animal that may bite to scratch and such. This, too, covers the contents that the tenant brought with him that did not exist before entering the house.
    Such insurance in the area I work for costs the renter $ 8 a month.
    post Scriptum
    The most common lawsuits in the areas I work in are tree falls, flooding and animal bites.
    Also recommends umbrella insurance as Elon pointed out.

    It is important to remember that many times insurance covers the damage caused, for example:
    Exploded pipe damaged the house,
    The insurance will cover the damage, but not the repair of the pipe itself.

  2. In addition to the above, I would like to add that if the purpose of opening an LLC is legal protection, there are several other ways to defend yourself:

    The first and most trivial way (even though it is trivial, not always implemented) - take care of your assets and keep them in good condition. If there is any danger in the property (exposed electricity for example) - take care to repair immediately!

    You do not want to get into a situation where you are being sued for "negligence" - so A and B is * to take care of the property and take care of it *.

    The second tool is "umbrella" insurance or in its German name umberla. This is insurance that goes in where the rest of your insurance does not go in. Particularly relevant to those who already have capital and assets, which may be foreclosed on in the event of a claim. Such insurance can provide protection of between one million and five million dollars and even more and is an effective tool in every investor’s toolbox.

    By the way, the lawsuit does not have to be related to real estate: Imagine you live in the US and God forbid you drove a car and hit another driver, who happened to be driving a luxury car, and not that, the injured driver was a brain surgeon who lost a million dollars annual income.

    Suppose your car insurance covers up to $ 300,000 - you are short of $ 700,000. In this case - either you pay the difference, and if you have no cash but you have a rental property or a property you live in - then the court can order you to have the house confiscated.

    Umbrella insurance, if purchased, will go into action in this case and will actually protect all of your other assets (such as an umbrella that protects from rain) and essentially complete what was missing from your other insurances.

    Insurance is not too expensive and it is a good way to insure your financial assets, especially if you are a US resident.

  3. Subject of inheritance or more correctly to your question.
    In the rules of law in many countries is similar to Israel, the moment there is no inheritance order the property works for the spouse and / or children. But the state's laws on the subject, including the tax issue, should also be considered. And no less important to remember that if there is no succession order or similar solution as noted above, it will come to court and only where the judge will make the decision how to divide the inheritance.
    In general an inheritance order in the US can be done through an attorney and it costs around $ 600 (do not catch me in the number) and it makes things easier.
    In general, an inheritance order in Israel can be valid as well, but there is no need for a judge's decision.

  4. Look, right..No wrong that is not the question..It is risk management and how you will continue your development in asset acquisition.
    There is a difference in taxation in Israel, of course… See the study units.
    Plus you don't owe an American partner ... and in fact what you have ..
    If it is for cheaper funding then a deal is made that he will enter into a partner with you and not a company.
    This makes it easier to manage and more correct.
    Lots open LLC because of the extra legal protection it gives…
    On the other hand, a lot of the opinion that if there is one or two houses it does not really require ..
    But again it's a question of risk management…
    Whoever commented to you here earlier deals with American taxation and handles the side of reporting in the US to many investors…
    I can tell you from the side that deals with investors in Israel, it's not necessarily as complex as the simplicity of the issue ..
    At the same time studying under tax there are 2 of my posts dealing with Israeli taxation through direct maintenance ..
    On the other hand, whoever owns through LLC is exposed to personal taxation or corporation tax + dividend…
    Taxation is part of the consideration…

    It will also add that the US report may differ in terms of its cost between direct and LLC maintenance
    But the one that can expand

  5. Hey Moshe
    1. You do not have to own an asset through an LLC. Holding a property through LLC will give you a certain protection layer (not absolute) against potential claims. It brings with it, in my opinion, a disadvantage - because it makes the Israeli tax report, in my opinion, a bit more complex
    2. If it is established with you and the other partner who is an American citizen - it will be considered a US tax partnership. You will share with him the yield according to the percentages allotted to him.
    Please tell me if you have any further questions and good luck
    Asher Toriel CPA

  6. You can also purchase property in your name without opening llc.
    llc
    Gives you confidence that when you are sued by a tenant or any other third party you will have a legal limitation on the property of the llc
    That means they can not go down to your personal property
    On the other hand, there are ongoing operating costs and a one-time cost of opening, so if you are dealing with a small asset at a low cost opening llc will hurt you in the yield.
    Who weighed advantages and disadvantages and decided.