AboutStefani Nachatilo Expertise I can answer basic beginner questions like "How do I get started buying my 1st rental property" and "What to look for when taking an application on a tennant." "Here`s what capital I have to work with -- what are my options?"
Experience I started purchasing rental properties in 1995 with my husband, part-time, while working a full time job. We started with very little seed money. One year we purchased 11 single family units. Recently we bought 5 properties in 2 months. We purchased our 1st small apartment building in 2004. I am now managing our units and doing property investing and management full time.
Publications My Husband and I have written a book for the new real estate investor, "Weekend Warrior's Guide to Real Estate Investing", published by Tate Publishing. Can be purchased from TatePublishing.com or Amazon.com. Have been published in Real Profits by Carlton Sheets and Discount Buyer's Association monthly magazine.
Expert: Stefani Nachatilo Date: 7/2/2008 Subject: Insurance Liability on the Guarantor of loan for LLC property
Question I am the guarantor of the loan for a rental property that we quit claimed the deed to our family LLC group. I also had to acuire the insurance on the property, but am concerned over who is liable for the insurance, the LLC; who holds the deed, or me who holds the loan, and had to acquire the insurance for the property? The LLC protects all five of our members personally, but if someone would get hurt on the property, who is liable?
Answer Hi Jayne -- I'm not an attorney, so this isn't legal advice, but based on what we do in our property business. The whole purpose of creating an llc is to shield yourself from personal liability. So technically, the llc is responsible for the property, including the insurance. Most banks will not loan money to an llc without a personal guarantor and insurance companies need a real person to sign paperwork for the llc. The operating agreement for the llc will designate who has the ability to deal with insurance matters for the llc or you can create a limited power of attorney for the llc with regard to "insurance only" making you the designated person to deal with all insurance matters. You should be paying the insurance premiums with a company check, not a personal check. As you should be paying all expenses related to the llc through the llc. Do not co-mingle company money with personal money. You don't want to be challenged that this is not a real llc. That's the way it's supposed to work, unfortunately one can never be certain until it's been tested in front of a judge. Hopefully nothing will ever cause you to get that far. Feel free to email again if you need follow up or have further questions. Stefani
