All Forum Posts by: Jay Y.

I'm not sure exactly where to post this question but here it is, I was one of the fortunate ones to be granted an EIDL from the SBA.  There's a clause that says it can't be used for physical repairs which makes sense if you have a brick and mortgage store/office but in our case as rental property owners, can I use the loan funds for a repair such as a gutter replacement???  I haven't called the SBA, kind of afraid to get an answer from someone who doesn't really know the answer.  Hopefully someone can provide some information here that I can use when I do call the SBA.  Thanks in advance!

Hi all,

I went to have a living trust drafted for my personal home and vehicles and asked the attorney if I should add the living trust as beneficiary of the holding company that owns all my rentals (holding company is just owned by me at the time).  He actually suggested that I make the living trust as owner of the holding company.  

I can see his point that it would provide an extra layer of protection if a tenant were to sue me however I don't like the fact that I could be putting my personal home and cars at risk.  That plus I'm losing the anonymity of where I live and what I drive.

What do you guys think, make the living trust the owner or beneficiary of my rentals' holding company??

Thanks so much!!!

@Eamonn McElroy So it sounds like from your reply First LLC and Second LLC are still considered disregarded entities despite the classification when the EIN was filed? So as long as Holding LLC files form 1065 and issues myself and my partner the K1, we should be all set? Maybe we should file form 8832 for Holding LLC so there's no confusion about it not being a partnership?

@Basit Siddiqi I understand where you're coming from, just want to make sure we're compliant so we won't have future issues. 

Thanks guys!!

Hey guys,

Here's my situation, my partner and I formed an entity call it First LLC which is classified as a partnership when the EIN was obtained. Later we formed another entity call it Second LLC and again is classified as a partnership. Now we want to create an entity call it Umbrella LLC to hold both First LLC and Second LLC.

Goal is to file one partnership return for both LLCs (and future ones), they were formed this year. 

Would we need to file Form 8832 for First LLC and Second LLC to change the classification from Partnership to owned by parent corporation?

Thanks so much!!

Hi all,

Hypothetically if I purchased a rental property on 8/27/17 and sold on 8/27/18; is that considered 366 days of ownership thus qualifying me for long term cap gains?

Thanks!

Hi all,

Hopefully another quick question.  So I have an umbrella company which holds multiple child companies which all hold real estate.  I want to setup a partnership but am debating whether I should use my personal name or my umbrella company as my half of the partnership.  This partnership will also only hold rental properties.

Advantages of using umbrella company as partner:

- I can use my umbrella company credit card and bank account to more easily transfer funds and make purchases

Disadvantages of using umbrella company as partner:

- If the partnership gets sued, my umbrella company is liable so I could potentially loose everything under the umbrella  

I'd like to hear your opinions.  Thanks!!

Great, thanks!!!

Hi all,

Quick question, I bought a property with owner financing and was wonder if I can still deduct the interest paid?  Owner hasn't issued me a 1098, I assume I can ask for one?  Would I get in trouble if I claimed the interest without a 1098?

Thanks!

Merri, I wonder if you could message me your brothers contact info? I’m looking for someone to replace a parking lot for a small multifamily in unincorporated Dekalb county as well. Thanks!

Just curious as I know this is a real estate investing forum but what other investments do people have? Now that real estate and stocks are at all time highs, what's considered under valued? Oil, precious metals? Would love to hear your thoughts and opinions!