All Forum Posts by: Angus Brooks

Hey All- I own a small apartment complex in a two entity LLC and am wondering what the tax implications are for a cash out refinance. I have done a lot of these for my own portfolio, but am wondering if the tax implications are different if we do a cash out refinance for this partnership LLC and then have to "distribute" the funds to the members. Both of the members of the LLC we are hoping to do the cash out refinance for are also LLCs if that matters, so it would be distributed from one LLC to another LLC to hopefully the members pockets.

Want to make sure that the money remains tax free the whole way and we don't have any surprises. Thanks for any advice you can give!  

@Peter Roehrich  I got some good feed back here:

https://www.biggerpockets.com/...

@Rick Martin Thanks for the detailed response.  My reservation with the private loan structure comes down to how quickly I could refinance money out with a commercial loan.  Do you have any experience there?  

It seems like the JV structure would give us a little more flexibility and mitigate us being stuck in an expensive private loan for longer than anticipated.

In the past we have used 8 month private loans for cash purchases - we have a 6 month seasoning period in our market - so that gives us a 2 month buffer to cash-out.  Are cash-out refinances similar with commercial mortgages? 

The JV equity waterfall you described sounds like a good option for rent ready holds.

Thanks for the info. Of course that is the one evening I am gone this week. Would be interested to hear your thoughts on the REIA if you attend.

Hey Guys,

Anyone know of any local meet ups or interested in starting one?  I am in Baltimore.

Thanks!

Thanks Andrew!

Hey Guys,

My partner and I have experience using private loans to BRRRR SFHs. We are trying to move up into small multi-family and bring on equity partners. Ideally we would bring on one-two investors to cover the down payment and we would take care of property management, rehabs, bank financing, etc.

Has anyone done deals like this?

What kind of split or structures have worked?

Is there a good way to cash-out investors in this scenario and a reasonable timeline to do so?

The properties we are targeting are 5+ units in the $500k-$1m range. 

Thanks for your feedback!

Anyone know of any Baltimore meet ups or interested in starting one?