Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago,

User Stats

19
Posts
3
Votes
David M.
  • Rental Property Investor
  • Los Angeles, CA
3
Votes |
19
Posts

Help me brainstorm on where to put these expenses?

David M.
  • Rental Property Investor
  • Los Angeles, CA
Posted

I started this business around 5 years ago and 2 years ago brought in an unsalaried partner. My partner Kevin has an equity stake in all of my businesses now:

Biz #1, he has 15%. This company has around 15 rental properties. 

Biz #2, 25%. Around 15 properties 

Biz #3, 50% - Around 25 properties.

Some of my major expenses are: 

Private contractors, around $200K/yr. 

Software/website/private contractors, around $40K/yr. 

Travel for business development/sales $10K/yr.

Would love your 2 cents on how I should assign the expenses (e.g. which companies should pay them) as they all benefit each business and assigning expenses to certain businesses would affect partner Kevin differently?

One idea is let's say I have $200K in expenses, I just divide it based on the % of properties. So if Biz #1 has 20% of the properties, Biz #1 pays 20% of the expenses.

That being said, I'd be open to simplicity just because ultimately it's only a difference of a few thousand and we both don't care much.

Loading replies...