All Forum Posts by: Daniel Okeefe

Good Morning BP. Would anyone have advise or experience on changing an LLC's formation state? I owned commercial property in Massachusetts under an LLC I formed years ago and in May of 2020 sold that property and did an 1031 exchange on an investment property (apartment complex) in Florida. In August 2021 me and my family moved and located to Florida full time. The Mass LLC , through the exchange owns the property(myself40%/wife40%/son20%) and we had registered with state of Florida as a Foreign LLC back when the property was bought. Now I thought it would be prudent to "convert" or change the LLC formation state to FL since I plan on staying here and the property is in Florida but I am being told by some lawyers that because the LLC is registered as a foreign entity I would have to create a new LLC with different name and transfer the real estate over. My concern is: would there be any Tax implications on the transfer of the property since I did a 1031 with the real estate to delay CG. I wouldn't want the IRS to see this as some kind of gain with the new FL LLC.. Hope I am making sense but if anyone that deals with such topics had any advise it would be greatly appreciated.. In my mind I was hoping there was a simple form or process just to declare change of formation state for LLC but maybe I am over thinking things.. I do plan on calling FL divisions of corporations but thought any advise I could get would educate me first. Thanks in advance

Dan

Closing on a 7 unit apartment complex next month but live out of state. Do new owners usually send the current tenants a letter introducing themselves ? They will have to know the new way to pay their rents so i plan on sending that info but was wondering what kind of introduction letter i should send? All business like and formal ?  or am i best maybe sending a more personal type letter ? Thoughts ?

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Thanks for the feedback.. Using an attorney for the closing for sure and the deal itself will most  definitely be subject to attorney review before anything is final. Just didn't want to overlook something or be naive on the seller side of a sale and i will also be looking into a 1031 exchange property that would be more than likely a commercial apartment complex which i certainly will retain a commercial broker for. Looking in the Pinella's county area like Dunedin or Palm Harbor. Will need referrals for brokers and attorneys in that area 

I own a commercial property in Mass and actively looking to sell. Been dealing with a commercial broker ( nothing signed or legal binding) and because of certain circumstances i wanted to start out and treat this as a pocket listing instead of the MLS. The property is located in a town that has approved an overlay zoning district which would allow Residential/ mixed use and is close to a developing downtown area which has drawn a lot of attention to developers. So unrelated to the broker i been taking to, i recently had unsolicited contact by another broker that knows a client looking for exactly my kind of property and knows the area and has given me an offer at the price i was willing to sell. What kinda strange is this unsolicited broker is officially disclosing that she is working on my behalf and has only asked for a 2% commission and would i be willing to pay that ? 2% in a commercial deal is darn low but suspect she is a residential broker, Of course i will find out for sure but my question is what perils lay ahead of me using a residential broker vs a Commercial broker in a commercial situation.. any thoughts or advice would be greatly appreciated

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Hello BP,  I will be selling commercial property in Massachusetts and looking to do a 1031 exchange for a property(s) in or around Dunedin/palm Harbor area in about a years time +/-. Is it to early to start to get recommendations or referrals for a real estate attorney and commercial Broker that know the area and knowledgeable with investment property ? Just really starting the process of assessing / marketing my own property but thought if i could get some feedback on finding some contacts in the Florida area would be a good thing. and to start a relationship and conversation with the right people would be good to.  I will be looking for a small apartment type complex or commercial building..Not 100% set on that yet but something that will cash flow.

Appreciate any feedback or advice

Dan Okeefe

The current owner lived in one of the 4 units and he had the occupancy at 60%..so i left it at 40% just to look at numbers and if we get the deal i plan on renting all 4 units as well. I haven't done the due diligence yet or followed up with them about that vacant rate yet . Are they including their own unit as being vacant ( no rent ?)  or is it 60% occupancy of the 3 rented units ? not sure yet. BUt thanks for the review and input

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