All Forum Posts by: Cliff Benner

I have not seen anything similar because it needs to be personal property, that is more like buildings and real estate. I am sure there might be circumstance that would allow it to be possible, but from what I have seen 1031 specialist say on here, there isn't a way to 1031 a business.

What might work would be selling the business, buying an apartment complex, do a Cost seg to offset the gains you made, but I would ask your Tax Accountant how that would work for you.

@Rishi Mehra what did you find and was it a local or nation provider?

I have seen hotels, dude ranches, more outdoor hospitality for sale, and from my research it is more like buying a business but rather than SDE or EBITDA the multiplier goes against Gross Revenue. Usually 2-3X.

So rather than buying a car wash that grosses $100k with SDE of $50k with a 3X multiplier for the sale price to be $150k, the 6 cabin resort that grosses $100k with SDE of $50k with a 3X multiplier would have a sale price of $300k.

Just an example for a different perspective. 

If they don't want to partner and want to just loan you the money, you can have a separate Note Payable with each of them and use Excel to calculate an amortization schedule and interest amounts. 

Those statements are fairly random on what they report to you. They are done on a Cash basis, pay attention to the transactions and balances they show. You should almost always be starting and ending the month with the same Reserve Balance. 

With the Cash Basis, and PMs not being Accountants, some tend to lump all inflows as rents.

I get:

Rent +$6743

Expenses -$1846

Prepaid Rent +$250

Net Income $5147

Owner Payout -$4630

Total $517.00

It seems they counted the Security Deposit twice as an Inflow and Math is not adding up correctly here.

I joined a call with a client and we made the PM walk us through the report and everything they did to see why and it seemed to have helped but things still have to be sorted through.

 I have always dreamed of developing something like this, with about 50-80 and having a Coffee Shop/Bar/Bistro in the middle with a playground on one side and dog park on the other so then everyone could have fun while I make money from either Rent of the tiny homes, sales of the tiny homes, and own the Coffee Shop/Bar/Bistro building to get rent from that too!

This sounds amazing, I have bought a business before and loved it and want to do the same with a Cabin Resort here in CO but find it hard to find one that isn't priced way to high.

Let me know if you need any insight from another perspective, I would love to help.

Good work!

As an Accountant, I can answer a few for you.

We only use QBO for all our clients, while this software is not REI focused, it has every tool to allow me to make the financials proper and clean, unlike some industry softwares I have seen. It allows you to connect accounts for less manual labor and can help with 1099s in January.

You will request a signed W9 from Cleaning crews, but the best practice is to request on from every vendor and then at Tax time you have all the information to find out who you need to send one to, rather than scrambling. If you don't request them all, at the minimum, request them from those who preform services for you; contractors, cleaners, managers, etc. 

Hey AJ, I can help with getting financials made to send to a Tax Accountant, but I don't offer Tax Services. 

Feel free to reach out if that works for your client.

 Hi Rene! I actually from here in Denver too and saw one down in Canon City/Westcliffe area. I wish I had the listing because it looked like a great development. But I think it was zoned as a MHP but the developer put only tiny luxury homes in it with a laundry area in the middle. They were selling it as a Commercial property.