All Forum Posts by: Chris Soignier

Not necessarily. Texas, for instance, has no state income tax. I could easily use a CPA from anywhere, as long as he/she understands the franchise tax on Texas LLC's.

Microsoft Excel.

Jim Silvis is my CPA, and he does a great job for me.   Look him up @ silviscpa.com.

Use what you want, but the TREC contract is a very good one covering just about every contingency, and people who do frequent RE transactions are familiar and comfortable with it.    I wouldn't use anything else for a residential transaction.

What's the prevailing standard in your submarket?   Note that you'll need to wait until leases renew to implement this, and you may need to budget for increased vacancy, as some tenants may choose to move when faced w/ higher net living expenses there.

Also, be sure you're not planning to pass on the energy costs for common areas (security lighting, etc., though I wouldn't expect a 6 unit to have a leasing office, laundry, and pool).

But yes, if you increase NOI by $8K, you s/b able to net out ~$75K @ an 8 cap market rate.

NEVER depend on Zillow for anything!   How much did you pay for that data?   That's about how much it's worth.

Your broker s/b able to provide rental comps that are much more accurate.

If an LLC loses a suit, and the primary assets are a bunch of houses w/ very little equity, the most the prevailing party can collect upon is the equity. Even worse, they are likely to have to pay taxes on the judgment, not what they actually collect, which is a great lawsuit deterrent.

Properties aren't awarded in litigation, $ are. If the judgment exceeds the LLC's equity value, you can either declare BK or hand over the LLC, complete w/ all the debt that goes with it.

I'm not really suggesting transferring properties regularly, just pointing out that it's equity value, not the property value that's more important in deciding how many to put under one LLC.

IRS liens take precedence over all, and a county auction won't wipe them out.    I believe other liens would in general be wiped out at auction, though I'm admittedly not an expert in auctions.

If you qualify (no FT W2 employees other than your spouse), a Solo 401K is a far better investment vehicle.    Checkbook control, higher contribution limits, no UBIT/UDFI tax on leveraged investments, ability to borrow from your balances for any reason, etc.

Also, note that if you have Roth 401K balances, I believe you can do a rollover to either a Solo 401K or SD IRA, but you can't roll over Roth IRA balances to a Solo 401K for some silly reason. Ask me how I know!