All Forum Posts by: Cade Schacher

Hello all!,

I am brand new to real estate investing and eager to get started but first want to make sure my business is set up correctly not just for one deal, but will be prepared for growth and if necessary protection. I know first every one will say to consult with a CPA and an Attorney first and I completely agree, and for sure will before taking any action, I would like to hear how some current investors have established their businesses, and any feedback is always appreciated.

Now being a new eager investor, I may have a wide eye approach but I do like to aim high. My long term dream plan is to start with multi-family rental properties, as that grows I would like to help cut costs by maybe starting my own property management company, also do syndicated deals, set up a real estate brokerage, really just in general ways that I can keep expanding is I grow into multiple areas and different businesses the real estate has to offer. 

So first I have heard investors talk about how they first set up a holding company, so then they can have different llc's for different type properties, syndicated deals, out of state properties, management company, etc. Has anyone gone this route, if so do you feel you had more flexibility to expand your business in different directions, or had more flexibility. Also I have heard there may be some tax benefits if their is a loss in one of the llc's under the holding company.

Second, Is I would like to see if anyone has any feedback on LLc vs Incorporated. From everything I have read I see lots of benefits for both and this just maybe a question that a Attorney will be able to answer based on my specific needs.  But setting up LLc's seem to have an advantaged to help keep only certain people in the day to day and management of the business and keeps private investors who are funding only out of the business operations.

Im sure this could e a record for longest question posted but I would love to hear how others are succeeding and how they have set up similar business models with how and why that works for them. Thanks in advance everyone!

With your primary residence can you avoid the capital gain tax if you have lived in it for less than two years? Would you be able to do something like a 1031exchange but instead of business or rental property it would be on a primary residence? I have been in my house for one year and may need to move in the next year for a work promotion? Optimally if i can i would like to refinance my residence into a 15 year fixed and turn it into a rental and then purchase my primary residence.  Like anyone else I  would like to tray and avoid paying my capital gains tax. Any suggestions?