All Forum Posts by: David Grant

Hello all, we wanted to see if anyone has used The Construction Agency (owned by Joey Dillon) in Atlanta. He seems like a great guy but I noticed that there were no BP reviews or discussions on him, though he does have Facebook and Thumbtack reviews.

Any comments would be greatly appreciated!

Thank you all.

@Mitch Messer thank you, I will reach out to you.

@Jody Roussel I have not heard of this association before, thank you. Good point his assets are all probably in another name, do you know if there are ways to trace them in some way back to the unlicensed contractor? He probably used names of his friends or family

@Steve Morris wished I knew better too =(. Unfortunately we paid him already, I am wondering if we can get him to pay us "EVERYTHING" back, including the amount of work he already did on the house

Hey guys,

Unfortunately I have given a lot of money to a contractor (more than 2/3 of total rehab cost) to an unlicensed contractor (he deceived us that he was licensed). He claims he has spent the money and unable to start work unless we give him more. We don't trust him and told him to just give us our funds back. When we did, he quoted a ridiculous quote. The amount he owes us is in the range of $40K - $60k. We are early in our careers so this is a lot of money for us.

I am wondering if you have any advice, this is for a project in Atlanta. It seems a bit ridiculous there aren't better consumer protections but after talking to a few attorneys, it seems like that is the case with Georgia law.

I am wondering if the BP community may have a better perspective as the attorneys are incentivized for us to take them on.

Much appreciated!

Hello BP, I am wondering if anybody has used the virtual CPA firm, "The Real Estate CPA". If so, what were your impressions?

https://www.therealestatecpa.com/

I was wondering how much of a difference you guys have seen in terms of searching for a CPA yourself or working with a referral. I am an outside investor in a property in Atlanta, and therefore do not have much of a social circle to rely on for referrals in the area.

Thank you!

I called the Fulton County tax assessors office and they said Fulton County does not have a transfer tax. This is quite interesting because if you Google Georgia Transfer Tax calculator, you'd think that there is a transfer tax for all of GA for property.

@Nathaniel Fulford

Thanks for your reply. Would you mind elaborating on the last part of your post: "A contribution of property to a multi-member LLC could effect the ownership percentage of the LLC in ways you do not intent to." The number of beneficial owners in the property is now different than the LLC - we'd like the property to of course, assume the LLC ownership arrangement based on how the LLC is organized.

@Andy Mirza Thank you, what if it is a multi-member LLC? I'll call the county clerk and ask

@Roman M. is it not a change of ownership if you quit claim deed it from personal ownership to LLC ownership?

To everyone else, yes the property is based in Atlanta, GA. 

Hello BP community,

If we quit claim a personal property into an LLC, are there any transfer taxes? We are based out of Georgia. From what I read online, if there is no cash exchanged, then there is only a $10 registration fee. But I'd like to confirm this, I'm not sure if our corporate attorney would know.

Are there any other taxes we should be aware of? I read there was a capital gains tax if the value of the property appreciated upon transfer. How do they determine if the property value has changed upon the quit claim deed? 

Thank you.

@Steve Hall
I do recognize these are business expenses, forgive me for my casual use of words.

@Charles Carillo

Thank you for your reply, I agree on everything you said. However, it seems like the commercial loan lending terms we are getting are giving us an interest rate that is very high and erodes into our returns greatly. Are we just not looking at the right places? Commercial lenders are giving us rates of about 10% versus the 5-7% we can get from a regional lender.

Hello everyone,

We are three friends looking to invest in real estate. Our first intuition was to get an LLC but we no longer thinks it makes sense for the following reasons:

- Have to get commercial loans instead of residential, which have much higher interest rates

- Have to get homeowners' and umbrella insurance anyway - we feel the risk of being sued while owning rental properties is lower than running other types of businesses if we don't cut corners on the rehab and have a good property manager 

- Large amount of filing and annual fees required

Are we thinking about this correctly and is there another structure that would best suit us? I have spent hours reading the posts and it seems like people either just do it in their own name, or suck up the fees associated with an LLC and take on a commercial loan.

I also read you can quit claim on a deed but after reading a couple topics, it seems like there is still a 50% chance the lender will consider it as a full transfer and exercise the acceleration clause.