All Forum Posts by: Andrew Jackson

Hey Andrew - I am not a tax or legal expert, but on similar deals I've done to this I set up an LLC under me and my partners names with a clear operating agreement and who is entitled to what profits. So generally, if your business is buying the property you won't have to worry about a gift tax as far as my knowledge. You'll then be working with business lenders who also in my experience do not have a requirement for the money to be seasoned for 2 statement cycles or any cycles for that matter. Hope this helps, and best of luck to you!

Good thing I created my first LLC last month! :) thanks for the input Mitch!

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Good morning BP,

I have a very specific question for some of you more experienced investors. To begin I have a few deals under my belt now, I began investing last year right around the time corona virus was hitting the headlines. I am to a point now where I have exhausted my personal resources acquiring properties and I would have to wait at least another 6months or so to built up the down payment for another property. As the title indicates, I have no intentions of waiting, I want to use other peoples money. I have some close friends and colleagues who have seen my success/cash flow on my recently acquired homes and they would like to help finance further homes in return for a stake in the profits. My hypothetical question is this; if I have Friend A who wants to give me $20,000 to help finance a deal, what are my tax obligations, if any, on the money he gives me? I have spoken to lenders in my network and they say as long as the amount given to me is in an account for two statement cycles they wont be looking into it any further. But I have my concerns as far as the federal government, are they going to care about me being given money to use in deals? or does this fall under the gift tax codes? I cant really seem to find a clear answer so I'm asking here.

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Hi bigger pockets,

I've been a lurker in the community for some time now. Reading the posts and watching the bigger pockets YouTube videos have pushed me to invest in real estate beginning around April 2020. After doing tons of research I closed on a student rental last year that has been going very well. I just recently closed on a multifamily home that I am house hacking and I was able to find quality tenants almost immediately. I'm feeling very good about my current situation and I just want some of you more experienced investors to weigh in on things I can do in the meantime or ways I can prepare for future deals. I am finally seeing the fruits of my labor with the passive income I am earning and I don't want this end any time soon. I am fairly young, ill be 27 years old in just a few days, so I have lots of time for future growth. Any advice or mistakes I should try to avoid, let me know. Thanks in advance.

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All Forum Posts by: Andrew Jackson

Andrew Jackson has started 2 posts and replied 3 times.

Post: Using Other Peoples Money

Post: Using Other Peoples Money

Post: Have had some success but I want to keep going