All Forum Posts by: Aaron Friberg

Great, thank you all so much for your feedback, very helpful.

Hello All, 

We own a large lot in Hillcrest that currently has 4 units(1 building). Next step is to develop the property, but need to figure out whether it's better to add a couple ADUs or tear down and put up an apartment complex/condos, etc (my guess is property is currently zoned for 12 units). An architect has offered to run through the zoning for the property, advise how many units could feasibly be built, tell us how many ADUs can be built, etc., and run through a projected cost benefit analysis of the different options. Cost for that service would be $5k. Question for the BP community (and specifically for folks with development experience or larger projects like this) - does this seem like a reasonable next step to you? If not, any other suggestions as we navigate cost/benefit analysis of how to proceed with the development? We've done several fix and flips, but nothing to this magnitude from a development perspective, so trying to think through best next steps. Thanks in advance for any suggestions. 

Would also be open to partnering with an experienced developer in SD of similar projects if it makes sense. 

Aaron

Hello BP Community, 

We are looking for a property manager in La Quinta to manage our single family home - long term rental. Any recommendations appreciated. 

Thanks,

Aaron

Hello All,

We are looking for a recommendation for a good vacation rental cleaning service that can clean units in Mission Beach, San Diego (off Mission Boulevard). Thanks in advance for any recommendations!

Aaron

Hi all. We are doing our first flip where we are partnering with other investors. We've established an LLC. We found the deal and are managing the construction so the business deal is we take 25% of the profits off the top and the remainder of the 75% is distributed to the equity (we're also contributing 51% of the equity so we'll have an equity position as well).

Question is: for the 25% promote payment (before the equity gets paid out) we were thinking of structuring that as a fee to my wife (she's handling all the remodel) pursuant to a separate contract so that basically she is an independent contractor. With the $20k or so she'll make off the promote, she could then treat that as income and contribute it to a 401k (or SEP/IRA or whatever) to get tax-free money. Basically she elect in taxes to be a sole proprietor and use the promote portion for tax advantaged retirement income purposes. Downside is that we'd have to pay employment tax on that money if she treats it as sole proprietor income from what I understand.

Is it better from a tax perspective to just treat the 25% promote in the same bucket of funds as the distribution from the LLC we'll receive for our equity portion? My understanding is that under the new tax law, 20% of the gains of the LLC distribution (and promote if we threw it into the same bucket) wouldn't be treated as income, so maybe best to just throw the promote into the remainder of the equity payout instead of doing the independent contractor/SEP contribution route described above.

Interested to hear thoughts from tax folks.

Thanks all.

Aaron

Great idea, but before buying a condo make sure the HOA will permit short term rentals. We Airbnb part of our house by the beach and it's great, but we previously owned a condo and HOA wouldn't permit short term rentals.