All Forum Posts by: Donald F.

@Justin Hoggatt not sure why my post above didn't tag you. just wanted to make sure you were notified

@Justin Hoggatt thanks for the message, it would be great to connect.

1) i wouldn't qualify for financing because i wouldn't meet the experience requirement
2) I'm looking to meet the material participation requirement this year as it is one of a number of requirements I would need in order to accelerate the depreciation to be taken in the first year. I'm aware that RV parks are already on a faster depreciation schedule, and that's a great reason for why i am attracted to them. Only the improvements that can be depreciated in 15 years or under can qualify to be accelerated to be taken in the first year, so long as I meet a long list of other requirements.  

@Nathan G. Thanks, I appreciate it. The other primary goal though is to meet the material participation requirement to use the bonus depreciation to offset the losses against my active income. I’m not sure that would be ok with the others in the groups you mentioned, I’ll check them out though.

It may not be the best idea to try and find a partner on the internet. However, would anyone with cash/operating experience (that would qualify for commercial financing) be interested in partnering on a deal together?

I have cash and depending on the size have a few friends with cash that can also contribute (Appx 100k from myself and each friend?).

I’ve been looking at a number of seller financing deals because I wouldn’t qualify for commercial financing (been looking mostly at multifamily and RV park deals in the Southeast US).

The other thing to note is that if anyone is interested, I’d like to purchase a cost seg report on the property, as well as manage the property on my own through the end of the year before hiring a 3rd party management. This is because I’m looking to accelerate depreciation on the property to be taken in the first year (bonus depreciation) and offset it against my active income.

Let me know if there’s any interest with all this in mind. Thank you.

Hi, my understanding is that from a legal standpoint, lawyers will usually want your entity to be multi-member for better legal protection.

However, from a tax standpoint, you will have no benefit from multi member LLC vs single member LLC.

I am just a single real estate agent, so a single-member LLC would make most sense when setting up an S-Corp. However, given the above statements, I don't know if it would be worthwhile, practically speaking, to setup a multi-member LLC (and have my dad or brother be a 0.01% partner).

Would there be any other factors to consider when deciding between the two? I though I read somewhere that perhaps I could take advantage of group rates on health insurance if multi-member.

I know this is probably a lawyer question. Therefore, if anyone has any good contact recommendations, I'd appreciate it. Thanks in advance for any help.

I'm a commercial real estate broker and want to scale my business hiring new agents to cold call/email. However, I need someone to come take a peek under the hood of my operations and see how I do things currently, and how I can improve them. Not just for myself but to make it so easy for even a new agent to figure it out quickly. When it comes to my CRM, I feel like my CRM is too robust for what I need it for. I wouldn't mind switching to something else if I could.

When it comes to how I get my email research done, I feel like there's a lot of prospects I never connect with because the accuracy of the emails I get is not great. 

When it comes to following up with people, etc., I need a better system.

If I can even marginally improve those things, I'd increase my revenue a ton. However, I'd like to improve these things substantially and I wish there were some qualified third party that could come in and help me. Does anyone have any recommendations?

Can you guys help me determine if this is a decent deal? I'm looking to take advantage of bonus depreciation and thought this could be a good deal. I also like it because the owner is willing to do seller financing and I don't know another way to go about getting financing since I do not have two years of income (albeit this year I have $250k thus far in commissions).

The owner is retiring and has no basis/seems like it may require some work, though I guess it's humming along for now. I plan on driving down there this weekend to take a look at it. He is looking for $585k, 30% down and 6% interest only for a 7 unit building (1 bedrooms) totaling appx 5200 SF on the University of South Carolina campus.

The units get anywhere from $800-$900 and would yield appx $5500/month in rental income.

The tax bill for this past year was appx $7400.

Any thoughts on whether or not that financing is crazy /ok, alternative financing routes, other ideas to accomplish my goals would be helpful. Let me know if any questions. Thank you.

thanks for the message, joe. yes, i understand RE phase out and recapture. for this property i would intend on just refinancing and 1031'ing until I die/pass it on.

I think it's especially important for me to take advantage of bonus depreciation this year though because i am looking to buy a house in a year or two for myself. my understanding is that with the way traditional mortgage underwriting is done, they can add the bonus depreciation back to my income for this year. 

thanks bjorn! unfortunately though, easier said than done. i've spoken with many and it is really tough to find an accountant, tax professional, etc. everyone i talk to says something different and has different advice. additionally, they all want $ upfront before really proving their worth. it's tough to know how to make the best decision in finding the right one.