Real Estate Investing: I have two LLCs. Can the first LLC be the investor for the properties and the second LLC be the contractor for fixing the same properties and billing the first? |
- I have two LLCs. Can the first LLC be the investor for the properties and the second LLC be the contractor for fixing the same properties and billing the first?
- Does upgrading the electrical panel increase home value?
- Can my LLC sell me a house?
- Costco mortgage is running a promo through the end of the month for executive members
- Creating a small scale Opportunity Fund to buy and improve a property in an Opportunity Zone as an alternative to 1031 exchanges to offset capital gains... Worth the hassle? Help me kick around some ideas?
- Stay in state or look elsewhere?
- Pay off rental or put in the market?
- Buy another property or contribute to an IRA?
- Tenant Management Products?
- Anyone here in the DFW/Dallas market?
- Help, should I buy property on 99 year leased land?
- How to get started?
- Move to multi-family; Looking for feasibility advice and understanding of lender analysis
- I have a seemingly good opportunity but I’m torn! I’m young seeking advice!
- Small Town REIT
- Property improperly classified by county.
- Selling Property Overseas
- Question regarding recent refinance and taxes
- Advice / Perspectives / Ideas for this scenario
- Building a new home... can I include all the carrying costs during construction in the cost basis?
- Is there a similar website to Roofstock but for multifamily properties?
- What's the most tax-efficient way to get my parents to transfer ownership of their house?
- Looking to get started with wholesaling properties but unclear about repair costs
- Flipping homes in Ohio
| Posted: 04 Mar 2021 04:58 PM PST Hi there my first post here on realestateinvesting. I have two LLC companies. The first is registered as real estate investing company and second one as a general contractor. I'm planning on buying properties for renovations (flipping) with the first company as an investor. And I want the second company to be the contractor to fix the properties and bill the first one for the labor and materials. Both companies are llc and I'm the owner and the only employee. Is this legal by the IRS and any other laws? Thanks for any help. Add: Thanks for the help. I forgot to add that the two companies are classified as S corp with Irs so I'm mainly trying this for more tax write off. I have a good accountant too and I think it might work good. Some of you may have a lot more experience than me in this kind of matters so I'll appreciate every advice 😌 [link] [comments] |
| Does upgrading the electrical panel increase home value? Posted: 04 Mar 2021 03:48 PM PST My house's break panel blows out pretty often. Even just using the microwave and toaster will cause it to go out. It's going to cost about $7000 to fix it and have it upgrade from 100 to 200amps. Will this increase the value of home at all? Edit: is this fair? I live in SoCal Description of work. Install one 200 amp panel, to replace existing 100 amp surface mount main meter panel, Install all new breakers and reconnect all new pipes to tha new panel, Create a new grounding system to properly ground new electrical panel run #4 wire from new electrical panel to the main water hose, How do you spell two ground rods to support grounding system............$2750 Run 1. 70 amp circuit from main panel to Garage and install 1. Sub panel 8/16 Spaces we will run new 1" conduit all the way from new panel to new garage $1975 Install 1 60 amp circuit for Tesla car inside garage with a Nema 1450 outlet $475 Install 1 20 amp circuit for garage door opener $175 Install one circuit for exercise equipment $175 Install one, 20 amp circuit for outlets in garage and installed 2-3 outlets out of that circuit $350 Run 1. 15 amp circuit to properly re feed existing lighting inside garage and outside garage and rewire lights $350 Provide and install two LED 4 foot lights inside garage with a new switch leg $350 Run install one new 20 amp circuit for office and add 2 electrical outlets on tha same room ,$620 For this work we might need to cut some drywall which we do not patch Run 1 20 amp circuit for microwave on kitchen counter $280 Total estimated labor and material $7500 Edit 2: I really appreciate all this insight and discussion. I didn't expect this. As a new investor this has been really informative and will pay dividends in my long career as a real estate investor. Thanks everyone. [link] [comments] |
| Posted: 04 Mar 2021 07:13 AM PST Hi all, I'm from Texas so I'm not sure if it might be different here. My dad and his partner have an LLC which I'm part of. I'm listed as a company manager. The company fix and flips homes as the main source of income. I want to start holding properties for rental use for personal passive income. My plan is this: 1. LLC buys beat up house (ie:100k) 2. Rehab to increase value using company funds. (So I don't use my own)50k 3. The company sells me the house for 170k at 20k profit for the company. What I'm thinking is that it shouldn't matter if the company is selling to me since it's going to get sold at that price regardless. I'm the one who's going to deal with paying off the mortgage, not the company. Is there a problem with this? And if so, how would I go about this in a way that works? Edit: seems like the answer is yes for the most part. What about if it's the LLC selling to my dad? Does that change anything? We both want to start holding [link] [comments] |
| Costco mortgage is running a promo through the end of the month for executive members Posted: 04 Mar 2021 08:45 PM PST Has anyone used Costco mortgage before? Thoughts? Opinion? Experiences? [link] [comments] |
| Posted: 04 Mar 2021 03:11 PM PST Howdy. This is a great forum with lots of useful information and I'd like to thank everyone who contributes their time to helping others learn about real estate investing. I was hoping some of you here might be able to take time to help me kick around a couple of ideas about opportunity zone investments... I'll need to talk to a professional, but I'm trying to get a better understanding from folks who may have been in a similar situation or have some tips. Thanks in advance for reading this long post... Basically: One tax guy who I spoke to said "you might want to check out Opportunity zones." He implied that we might be able to find an inexpensive property, set up an opportunity zone fund, buy the property and do the "substantial improvements" with money from that fund, hold the property for 10 years (?) and never need to pay that 50K. Sounds good. Everything I'm reading makes me believe that 1)"substantial improvements" amount to spending as much money improving the property as the purchase price and 2) the investment purchase needn't be the full sale price of the property that's realized gains, but only equal to or greater than the gains (?) All seems a little hazy and intended for more sophisticated investors/developers with much deeper pockets than myself. I know most investors considering their own OZ schemes have a lot more in gains and therefore are able to do very different types of investments, but I'd really like to hold onto that 50K as I'm "semi-retired" with a disability and I'm willing to jump through as many hoops as necessary if it's feasible. One scenario that came to mind was buying a small patch of farmland near where we buy a primary residence. There are roperties that come around every now and then for 100-200K that could be worked. Say we buy a few acres for 150K and put up a structure with plumbing and electricity and spend 150K on these improvements, does that meet the requirements? Can I use then use property as a kind of "place of business" for myself? Guess I'm hoping to hack the system a bit. Are there specific TYPES of properties and specific TYPES of improvements that qualify? Does the property need to be leased or otherwise used in a specific manner? Could one, say, buy a 10 acre abandoned orchard for 150K and put 150K into reviving the orchard? What about just buying raw commercial land and clearing it, bringing plumbing and electric in? Maybe equipment storage? Just spitballing here. Does the local government somehow need to sign off on the Opportunity Fund's mission statement or plans? I'd love to hear about any experience you all might have with similar situations or any advice really. What's your gut tell you about my situation? Am I barking up the wrong tree on this one? And thanks again to anyone who might have taken the time to read all this. [link] [comments] |
| Stay in state or look elsewhere? Posted: 04 Mar 2021 08:52 PM PST I live in a big southern coastal California city with one property cash flowing almost $2k/mo. I want to buy another property around June, but my price range would yield little to no cash flow. I know you're wondering why? In short, I want to ensure I stay cash positive. A measly 100-200/mo seems like a risk. I'm torn- do I knowingly invest in a market that's a bit too close to my max? Betting on long term growth/equity? Or- go somewhere cheap where I can buy twice as much house for the same price? This would be out of state. I prefer coastal, but I am Looking for profits, not my forever home. For those who caught this quagmire, how did you come to your outcome? What considerations did you determine and did you ultimately find success? [link] [comments] |
| Pay off rental or put in the market? Posted: 04 Mar 2021 02:44 PM PST I have 6 houses 5 of witch are rental properties. I started investing in real estate back in 2016. I have about 40k of extra cash, not including what I keep for emergencies or that is already in the market. All my properties are cash flow positive. I am not considering buying another as the market is so bad for that right now in my area, I cant bring myself to do it. There are only 2 houses anyway in my comfort price range and they are trash. So I am trying to decide to put it in the market and add to my position or pay down a couple rentals. Rental number #1 payed 50k put 50% down has a balance of 19,436 left making about 915 gross and a mortgage payment of 171 ( taxes and insurance not in escrow) 15 year . Rental #2 payed 58k with 50% down, a balance of 22,886 its making 1075 gross and a mortgage payment of 375 with taxes and insurance 15 year. Rental #3 Payed 68k 25% down with a balance of 48,283 and a mortgage payment with taxes and insurance of 425 on a 30 year that I refinanced from 15 to 30 and a gross rental income of 1175. Rental #4 Payed 72k with 25% down refinanced from a 15 to a 30, have a balance of 54,195 and a mortgage payment with taxes and insurance of 431.43 and a gross rental income of 1150. Rental #5 most recent only about 4 months ago, payed 65k with 25% down on an initial 30 year. mortgage balance of 49,877 and a monthly payment of 403 with taxes and insurance and a gross rental income of 775. And then of course my personal house that has a 220k balance, but that dosnt make me money so im not going to worry about that. I like to invest in a broad mutual fund that covers the whole s&p I know not very aggressive I dont have a huge pain tolerance for risk, but it works for me. But I think last year was an over 13% increase, I dont hope for that to continue but the historical average is 8%. What would you do? Edit: other than my personal house I have zero personal debt as far as car (I drive a cheap car), credit card (I pay it off every month) , student loans (I did a few semesters at a community college) etc. [link] [comments] |
| Buy another property or contribute to an IRA? Posted: 04 Mar 2021 07:08 AM PST I bought my first multi-unit in Oct2020 as an owner occupied and plan to buy and move to another one in about 6 months. I have ~$40k in a HYSA earning about $15/month. Should I take ~$12k of that and max out my wife's and my IRA's for 2020 or hold it for the next property? I feel like I'm at a crossroads of how I'm going to fund my retirement and am not sure what to do. Have any of you been through this dilemma? Any advice you can share would be greatly appreciated. [link] [comments] |
| Posted: 04 Mar 2021 02:47 PM PST Long time listener first time caller, I'm in the process of signing the contract on my first multi-family property. I wanted to ask the community what software everyone uses for tenant management? Am starting to do some research on this but wanted to get a consensus from everyone here first. Any help is greatly appreciated! [link] [comments] |
| Anyone here in the DFW/Dallas market? Posted: 05 Mar 2021 12:47 AM PST I'm new the DFW area and recently made my first real estate investment in the oak lawn area. Would like to share ideas with other investors in the space. [link] [comments] |
| Help, should I buy property on 99 year leased land? Posted: 04 Mar 2021 08:43 PM PST Like the title says, I have an opportunity to invest in a town home. The problem is that the land is on a 99 year lease and it has 73 years remaining on it. If I buy this property do you guys think it the property will go up at all if I sell in 10-15 years? Please help, any input would be greatly appreciated. [link] [comments] |
| Posted: 04 Mar 2021 09:28 AM PST Hello investing experts, I have around 50k saved up for the first house. I will be goimg back to school this year and my wife will graduate and start earning from august/sept of this year. I want the money going towards real estate investing. Here are my questions, 1. How do I start? 2. What resources do you recommend, not the fake guru style youtube videos, rather a book or educational courses? 3.With my wife being the sole earner for the next possibly 2 years, is it even a good idea to get started this way? 4. How to hunt down locations ideal for renting out houses. Any help would be greatly appreciated. Thanks [link] [comments] |
| Move to multi-family; Looking for feasibility advice and understanding of lender analysis Posted: 04 Mar 2021 03:05 PM PST Team, I've been a recent lurker on this sub and I'm looking to get more deliberate on the real-estate front; I appreciate any thoughts on taking the plunge into a multifamily property in DC. My previous forays were just from moving often, and an unwillingness to sell if I didn't need to..... So currently more of an accidental land lord. However, looking back on where my wealth has grown, I see big pluses from holding real estate and want to start making moves to maximize this. Financial position: Paying mortgages on 3 Single Family Homes; Current cumulative Mkt estimate is $1,255K versus outstanding mortgage debt of $678k (no other debt) - Property 1 is in KY and slightly cash flow negative on a 15 year loan; with a property manager - Property 2 is in VA is also cash flow negative on a 15 yr ; self-managed - Property 3 is in NY and is my personal residence (my family to remain so not an income producing property; although looking at a basement conversion to generate something) Situation: My work is taking me back to DC; therefore, instead of renting I'm looking for a 3+ unit property where I live in one unit (most of the time), and then self-manage remaining units. I have some additional cash for a down-payment, but likely not enough to hit 20% for properties in the $1M+ range. I will live in one unit part time for at least 3 years and then fully rent out the property. Questions: Big picture, my questions are about what is feasible on the financing side; e.g. What is a lender likely to look at in my situation?
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| I have a seemingly good opportunity but I’m torn! I’m young seeking advice! Posted: 04 Mar 2021 01:14 PM PST I would really like your opinion on something. Im still young so I know I should take risk while I still can. A lot has led up to where I am right now but long story short, I dropped out of college after a semester, moved to north Illinois to gain work experience in the realestate rental industry. I get hands on work as well as learning management. I'm also enrolling in a mechanic trade school to at least have a marketable skill that I can work and begin to invest in my own realestate. I'm from florida and after being in illinois I realized I really want to move back there. I have an opportunity in North Florida (Destin). Our close family friends are making a killing as realestate agents and they are offering to take me and their son under their wing to teach us the market. I would love to do this but I would be giving up my mechanic trade (which I'm actually pretty interested in). I would be okay with this because if I set myself up for financial freedom, I can be doing mechanic work in my 30s and 40s. I'm not asking you to make my decision but I'm asking what you would do in this situation. Would you take the risk and move to Destin to work as an agent and buy property? Or would you play it safe and stick it out in Illinois, establish myself a little, then move to Destin. I know my time is worth so much more now than it will be in 5 years, even 10 years and establishing my career 3 years early could be a HUGE difference. Only thing is I would be taking risk.. but what do I have to lose!! Just my trade skill I guess lol [link] [comments] |
| Posted: 04 Mar 2021 04:27 PM PST I live in a small town (pop. ~10,000) and would like to form a real estate investment group that is specific to residential real estate within our city limits. We have several older neighborhoods that have declined over the past 3 to 4 decades but could potentially be heading towards a growth phase. My town is located between two large metropolitan areas and has 5 interchanges with a major interstate corridor. It's primed for growth in my opinion. I would like to form some sort of real estate investment fund which would allow other locals to invest in and start the "gentrification" process in some of these older areas. Is something like this possible and what would be the best way to go about this? [link] [comments] |
| Property improperly classified by county. Posted: 04 Mar 2021 08:03 PM PST I bought a duplex about 10 months ago. I got my annual letter from the county assessor today and noticed the property is assessed as sfr. The building has been a duplex for at least 20 years when the previous owner bought it. Fortunately it conforms to zoning. So, my first instinct is to contact the county and get it fixed. I know the taxes will go up but what other things could result from this? [link] [comments] |
| Posted: 04 Mar 2021 02:05 PM PST My grandmother passed and left her apartment to me and my father. It's located in Poland and we currently live here in the United States. Has anyone had a situation where they took care of listing and selling the property pretty much all remotely? We are having some trouble finding legitimate websites or places to post the listing. Any insight or tips are greatly appreciated! [link] [comments] |
| Question regarding recent refinance and taxes Posted: 04 Mar 2021 03:24 PM PST Hello yall, I refinanced in October but am now looking at the possibility of selling my home and renting for awhile. Ive checked with my mortgage company and they verified no pre payment penalty. But what im curious on is the tax implications if i sell. I dont have a tax guy and always filed via H&R block online filing. How much am I possibly looking to pay in taxes? Home is refinanced for 300k but market says i can probably sell for around 450k. Any help would be appreciated thank you! [link] [comments] |
| Advice / Perspectives / Ideas for this scenario Posted: 04 Mar 2021 10:39 AM PST advice needed: Looking for some investor advice. Here's the math: Like [link] [comments] |
| Building a new home... can I include all the carrying costs during construction in the cost basis? Posted: 04 Mar 2021 10:30 AM PST We are renting our current place and building a new home that we will move into at the end of the year. We bought the property in 2018 to tear down the existing house and build our home. I'd like to know if we will be able to add all of our carrying costs during the build into the cost basis. Specific carrying costs that I'm wondering about... utilities, insurance (liability & builder's risk), and property taxes. I know, in general, that property taxes are not part of the cost basis, but my thought process is that if a builder was building a spec home they would likely be able to write off all of these costs (correct me if I'm wrong), so are we able to do the same? [link] [comments] |
| Is there a similar website to Roofstock but for multifamily properties? Posted: 04 Mar 2021 07:22 AM PST I have a small apartment building I bought at 10% cap in 2019 and won't mind selling it (relocated to a different state post Covid). Instead of selling on MLS, I am wondering what other websites I may sell to, appealing to national investors who want high cap, multifamily properties. I somehow got on the email list for Tranzon, is that a good website? Any ideas appreciated. [link] [comments] |
| What's the most tax-efficient way to get my parents to transfer ownership of their house? Posted: 04 Mar 2021 07:39 AM PST My parents currently own a duplex that's valued at 800k, but was purchased for 500k more than ten years ago. They still have 7 years left on their 15 year loan (which was a refinance), but they are thinking of transferring ownership to me so I'd be able to avoid having to pay as much tax each year, as I work in a high W2 job. I currently have no properties under my name, and I've heard that buying the house for cheap from a family member can result in gift taxes. What's the best way to complete this transaction so that I can minimize the amount of tax either my parents or I have to pay? Would love to hear what others have done in a similar situation. [link] [comments] |
| Looking to get started with wholesaling properties but unclear about repair costs Posted: 04 Mar 2021 02:28 PM PST I'm new in the real estate business. I've been looking into wholesaling properties for a while now. I'm a very smart woman and pick up on things pretty quickly and easily. I get what wholesaling is. I act basically as a middle man between a seller and buyer of a home. I have the seller fill out a contract. I hold the home until I can get a buyer for it. Make profit. Rinse and repeat. I know this isn't something that's simple. But I'm willing to put in the time and effort into it. Right now I'm doing some research until I fully grasp things. One thing isn't clear to me is how do you factor in the repair costs of the home when you don't know how much it'll cost? I don't know the costs of repairs on a home. And I don't feel comfortable making up a ball park price based on the properties around the neighborhood because I don't want to be viewed as dishonest with the final sale price of the home. Is it possible for me to just get a contractor to figure out the cost of repairs for the home? OR can I be honest with the buyer and say something among the lines of "I prefer to leave finding the cost of repairs to the buyer of the home. That way the buyer can get a detailed look at things and decide what they think is right." [link] [comments] |
| Posted: 04 Mar 2021 05:04 PM PST Anyone flip homes in Ohio? Is the market moving quick? Which areas specifically? [link] [comments] |
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