All Forum Posts by: Armand Farr

Hi BP - need your help with this situation (our properties are in Houston, TX if that matters):

- Properties A and B: Both were held by three partners in our own names individually (never held in an LLC)

- Property C: The last property was held in Acme LLC with FOUR, different partners then transferred to our names individually upon refinancing because lenders wouldn't lend

Questions - Gotten conflicting answers on all of these
1. Property A, B, C: Do we have to file three separate partnership returns or can we just file individually? A and B had the same partners, C had one additional partner. Or can we just distribute the profits and losses to our returns via a schedule E without the partnership returns?
2. Property C: Do we need to file an LLC AND a partnership return for the last property given we held it in an LLC and individually?
3. How to Not Get Killed on Costs: If we have to file partnership returns for all of these... that's a lot of money and it burns through cashflow on relatively cheap Houston properties. Does anyone have a better way to do this?

Hi BP - need your help with this situation:

- Properties A and B: Both were held by three partners in our own names individually (never held in an LLC)

- Property C: The last property was held in Acme LLC with FOUR, different partners then transferred to our names individually upon refinancing because lenders wouldn't lend

Questions - Gotten conflicting answers on all of these
1. Property A, B, C: Do we have to file three separate partnership returns or can we just file individually? A and B had the same partners, C had one additional partner. Or can we just distribute the profits and losses to our returns via a schedule E without the partnership returns?
2. Property C: Do we need to file an LLC AND a partnership return for the last property given we held it in an LLC and individually?
3. How to Not Get Killed on Costs: If we have to file partnership returns for all of these... that's a lot of money and it burns through cashflow on relatively cheap Houston properties. Does anyone have a better way to do this?

Super helpful @Tyler Rowland and @Tom Swapp. Last question - let's say a property has been assessed for the last few years at ~$200k and the current owners pay taxes at that rate.

If I buy it today for $400k, will the county automatically charge us taxes on the $400k value? Or can we carry over the $200k assessed value?

Hi there,

I've had a hard time getting a straight answer from lenders / the county on this one so I thought I'd ask BP.

1. Tax Rate: What's the tax rate like in Salt Lake City (looking at South SLC - Sugar House, Millcreek, Highland Park)? Is this as simple as % multiplied by the property value? I've been seeing 1.1-1.2% which would be ~$400/mo on a $400k property. Seems high.

2. Reappraisals: If I buy a property for $350k, put in $50k of work, and now it's worth $500k. How likely is the county to reappraise the property and tax me at $500k versus the $350k I bought it for?

Thanks all!

Hi all - 3 of us are in a deal and are figuring out the best way to split CapEx in a deal:

- Investors A and B own 25% each
- Investor C owns 50%

Let's say a $1000 CapEx comes in:

1. Would we split this based on the same 50/25/25 split?
2. Or can we split it evenly and give investors A and B more equity based on the $ contributed?
3. What's a recommended operating reserve for CapEx as a % of rents?

@Chris Mason @Marc Dube that's good to know. Are there issues with us taking title in an LLC or can we get around that too?

Hi all - we're purchasing a property in an LLC and need a lender for a refinance. We can personally sign for the loan but would like to keep the title under the LLC.

Does anyone have a recommendation for a portfolio lender that could help with this?

Hi all, here's the situation we're in:

- We have 4 partners with a property under contract

- We plan to refi out, but lenders won't lend to an LLC so we need to take title personally

- But lenders also won't lend to 4 people

So my questions are:

- Can we have 2 people on title and the loan, then a separate agreement that divides ownership across us 4?

- When we distribute cashflows or sell the property, can we distribute the gains appropriately across the 4 owners?

Any other recommendations on how to manage this would be much appreciated.

Hi all, here's the situation we're in:

- We have 4 partners with a property under contract

- We plan to refi out, but lenders won't lend to an LLC so we need to take title personally

- But lenders also won't lend to 4 people

So my questions are:

- Can we have 2 people on title and the loan, then a separate agreement that divides ownership across us 4?

- When we distribute cashflows or sell the property, can we distribute the gains appropriately across the 4 owners?

Any other recommendations on how to manage this would be much appreciated.

@Tony Castronovo factors that would be helpful:

- Upward trajectory vs areas like Cypress, Katy, etc.
- Entry price point compared to other talked about areas
- Other wildcards like floods and crime activity