All Forum Posts by: Andrew Hogan

The question is, "what are you trying to accomplish with the LLC?"

Please confirm with your own CPAs and Attorneys before making any decisions but in terms of liability and tax exposure, I've observed no noticeable difference with individual vs LLC investments. 

I see a lot of people do an LLC for their syndications from a pure book keeping perspective.

This could vary state by state. I heard that one CPA told their investor client from California that because they inserted the LLC's EIN instead of SSN, they had to pay the state of California a ridiculous amount of tax.

Good luck!

sounds like you know enough to ask an up to date CPA and confirm with them. I've seen CPAs that are comfortable doing what you're trying to and others say it's outside their comfort level. You just need to do what you and your CPA feel comfortable with at the end of the day.

Good luck!

Hi @Bhairav Bhavsar, A crucial piece of info is the location. Class A neighborhood of... Tampa, FL? 

Qualify as a 'Full Time Real Estate Professional' and you may be able to.

Give more help than you receive @Steven Jordan and you' will learn what you need along the way.

There are deals to be found in any market.

It just depends on what your goals are and the risk that you're comfortable taking on to achieve those. Evaluate Chicago vs other markets so that you can compare apples to apples. Personally I prefer investing in more business friendly states.

Good luck 

Although I'm a fan of the Midwest, there are several states that are much more "business friendly" as they say, so make sure you're comfortable with possible disruptions with local regulations going into any deals you do there.

Indiana isn't too far away if you ever get fed up :)

Great analysis @Trevor Stone. Technology plays a crucial role in the business plan and can ultimately make or break a deal.

@Daniel Kitts don't drop dollars chasing pennies. Do what you enjoy and grow your capital as much as possible before "retiring".

Quote from @Nick Robinson:

@Jason Malabute
Jason just a couple of things about your analysis. The FED has only increased interest rates one time so far and that was March 16th.  Interest rates have been going up but that is not the FED raising them that is the market.  The FED controls the FED funds rate, which is the overnight rate banks give each other.  When the FED raises, the rate is does have some impact on the short-term bonds but the further you move away from the 1's and 2's the less the FED funds rate affects it.

I agree about there being a housing shortage.  I believe last time I looked there was about 240k houses on the market.  That is extremely low when you consider the last, I heard 1.2m to 1.5m listings would be a balanced market.  A counter argument to that is the 2yr treasury is at 2.342% right now.  If you look at a chart the FED funds rate and the 2yr treasury are usually the same.  The FED funds rate is .25-.5.  If they raise the rate up 2% that will cause a lot of panic in the market considering if they raise FED funds again, they will be very close if not invert the 2yr and 10yr treasury.  If the yield curve inverts there has been a 100% chance of recession since the end of WW2.  There is a certain point that if you raise interest rates, which is increasing the cost of the home, you will crush demand enough to hurt the market.  The question is what is that pressure point?  Is it 5%, 10%, 20% interest rates?  

My base case is the FED will continue to raise rates to fight inflation until they break something. The cure for high prices is high prices.  When you have a lot of speculation in the market it's time to sit back and reassess your positions.  Right now, the Reverse Repo Mart is paying a premium to actually own the collateral (most cases US treasuries).  This shows big institutions and banks are moving towards safety paying less than what a bond is yielding.  I am not saying that houses will go down 40-60%, but this would be a time to have some cash on you waiting for some deals whether they are in RE, stocks, etc. 

 @Nick Robinson Love your take. You're going to need that cash when you're up against Blackrock!

There are opportunities to be found at any point in the cycle and I've seen too many folks sit on the sidelines since 2020 hoping to buy at rock bottom 08/09 prices -- not gonna happen.