Investing with Family - How to Set UP

[Kim Harlow-Williams]

Hello, Myself and my three daughters are wanting to start investing in multi-family.  Looking for direction on how we should set up the business or IF we should set it up as a business before we start or wait until after our first purchase.  Also, looking for a real estate attorney, CPA, tax adviser, experienced realtor in investment properties and local active real estate investment groups and connection to anyone that has done family investing successfully.  I do have my RE License but it is not active now and I am currently a Regional Property Manager for Manufactured Housing Communities.  Hoping to connect with and develop a great team to help guide us.  Thank you.

[Katie Balatbat]

@Kim Harlow-Williams

Congrats on jumping in!  What a lovely family legacy to leave.

I think you've received thoughts so far that people have shared, and I would add a few other thoughts for consideration. The question of how any debt will be held is a good question, as well as how initial equity will be contributed and shared. An LLC or similar entity may provide you a very streamlined ownership structure with a manager and single bank account, but also comes at the cost of additional paperwork, filings, and that pesky $800 annual cost. Conversely, holding title jointly outside of an entity can make tax filings and bank reporting more of a hassle, as well as have additional liability exposure, depending on circumstances.

If you need referrals for CPAs, realtors, or attorneys in the San Diego area, I can definitely assist with some names there, just reach out.

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.