All Forum Posts by: Eric Gabriel

@Andrey Y. , Let me clarify.  For example, you are saying that if I take a trip to Home Depot with my work truck and don't buy a light fixture, then go to Lowe's to see what they have and don't buy a light fixture, then go online and buy a light fixture, it is illegal to write off my mileage on my business taxes?  I would say that you are wrong.  I can totally justify that expense if the IRS asks me.  Let me know what you think would make it a business expense.   

@Jerry W. , Regarding assets, I have 2 plexes in my name and my wife's name in Oregon.  That's all and the pile of cash in Korea.  If I put them in the name of a trust, is it still possible to get financing on them?  I'm guessing it would trigger the "due on sale" clause.  Maybe not if I show the bank the trust with me as the beneficiary.  

Are PODs used only for liquid assets?  It sounds like a document attached to a Will.

I know what "tenants by the entireties" means but is that the wording that the trust should have?

Thanks for all the details.  Greatly appreciated.  

My plan, which might not be completely clear at the top of this thread, is to buy 18 plexes, rehab, refi, hold, and repeat 18 times.  I will buy 18 plexes or build 18 if I can't find ones that meet my criteria.  After that goal has been met, I will place my excess funds in a retirement account that will invest in several RE funds.

@Account Closed , how do you have your trust set up? You can PM me details. Is there someone in Portland that I could talk to? My parents have POA to sign for me and I coached them in November that they might have to create a trust for me and my family with the money that I send them. I just need guidance on how to set it up correctly.

@Lance Lvovsky You are saying the property should be in the name of the trust.  For example: 4-plex owned by "Big Guy Trust" with a name that doesn't identify me.

Create an LLC that has me as the managing member (my job) but owned by the "Big Guy Trust".

Does that sound right?  Or am I mistaken?

I'm going to be returning from you US from Korea and need an entity other than my personal bank account to place $500,000.  There are several goals that I will list below and desired results of those goals.

Goals:

1. Invest in real estate directly (maybe owning it in my name or not) in 18 more 3-plex or 4-plex properties in various markets throughout the USA
2. Invest in real estate passively through a few funds that I'm looking at (maybe owning it in my name or not)

I'm doing both currently.

Desired Results:

1. Minimize or eliminate my tax liability through write-offs, depreciation, and entity structures. I've done this so far through an LLC. I've basically spent all the income I've gotten on business expenses. I looked at real estate in Guam and met with realtors there. It's a beautiful place but didn't meet our criteria. Thailand had some decent investments too, but we didn't buy there because of the instability. Those business trips wiped out my profits. I'm assuming I'll have more profits with the additional $500,000 in capital and might not spend all the proceeds on business expenses.
2. I'd like to protect my assets from lawsuits and be able to pass them onto my children at some point.  I think trusts are able to hide who owns an asset, which seems to be an excellent deterrent.  Use a mixture of deterrents and legal entities to protect equity.  I have $1 million umbrella policy currently.
3. I'd like to be able to use the assets as collateral.  If they are in the name of another entity I can see how that might be hard for a bank to lend to me on such an entity.
4. I'd like to be able to use the income as opposed to a retirement account.  

Thank you for any help, opinions, advice, strategies that you might have.  

Same as Mark S., Where are you getting the 2 annual trips?  Any travel that is business related is tax deductible.  That's how I understand it.  Talk to your tax guy about what % of travel, meals, and lodging is deductible.  

@Chad Lopes , I'm looking for the same along with a wholesaler of plexes, a realtor, reliable contractor, and knowledgable appraisal company.

Do you know any wholesalers or turnkey rehabbers that are killing it and getting great returns for investors/partners? I need to buy at or below a purchase prices with rehab equal to 75% of ARV? Maybe that's Mark. Maybe it's a company. Thanks for the heads up on the investor groups.

Thank you so much guys!  Does anyone know any honest wholesalers or any effective property managers?  I'd like to get those relationships rolling so I can have confidence when I pull the trigger.

Thank you all.  Lunch is on me if anyone is interested in helping me with locations selection or wants a money partner on anything.