Real Estate Professional · San Francisco, CA · Member since 2013 · 4 posts · 0 votes
I'm about to take over property management for a property that my father-in-law owns and will be fixing it up and renting it out as a vacation rental. I'm looking for good recommendations for how to set up a separate account for this venture separate from my personal bank account since we'll be incurring expenses and have a steady stream of rental income, which will be split 50/50. I would appreciate any recommendations for investor-friendly real estate attorneys and accountants/CPA's in the Raleigh, North Carolina (NC) area.
Lender · Los Angeles · Member since 2013 · 63 posts · 33 votes
12y
Have you checked out TREIA.com. They are in your area. The members seem very pleased with the network of contacts they make. My understanding is that there is a RE attorney that frequently speaks at the meetings that many TREIA members work with. Have a great day.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
Just be aware that technically you are not supposed to manage property owned by others for compensation or gain. I realize this is a relative, but you will have no legal basis if (for whatever reason) something happened and someone challenged your legal standing as manager.
Your in-law could move the property to a new LLC, where they would retain 100% of the capital and 50% of the Profit/Loss allocation, and also have you as a member with 0% capital and 50% P/L. Then 100% legal, all banking etc. is done via this new entity, and each member gets a K-1 at the end of the year. This would be one way to structure the deal. There are lots and lots of other details that would need to be in your operating agreement...