All Forum Posts by: James Fraundorf

New to the Short term rental game!  Trying to find a good contract for my cleaners.  Anyone have any contracts you'd be willing to share with me or any resources?  Thanks so much!  

Hi, has anyone had experience opening a business bank account in Delaware for a rental property located in another state? My holding LLC was formed in Delaware so I'm thinking if I want all the protections Delaware offers I should probably open a business bank account in Delaware as well. Am I correct in that thinking? I just got off the phone with Chase bank and they said I have to physically come to the bank in Delaware to apply (which is not going to happen as I live in Seattle). Does anyone have any thoughts, suggestions, or experience with this?? Should I just open a business bank account in the state where my rental property is located or will that compromise the protections forming an LLC in Delaware provides? Thanks so much!

I was wondering if there's any Real Estate attorneys in MN out there? I have a question about forming an LLC in Minnesota and am looking for some state specific feedback. Feel free to private message me! Thanks so much!! Cheers!

Question for an a cpa/accountant, I want to take an early withdrawal from my Roth IRA (contributions AND earnings) to buy my first property (not a primary residence). I know there's a 10% early withdrawal penalty for earnings but I read somewhere that is waived if you're purchasing your first property?? Also, once I withdraw my contribution and earnings is there a 60 day window where I can put those funds back into my Roth account? Thanks!

What's your favorite STR/Airbnb management software? Have a 4 unit condo under contract and we are trying to figure out the best software to use to manage it. We want to be as hands off as possible. I see there are some free options out there and also some not so free options. Thanks!

Hi friends, I have a question for any lawyers out there or anyone who may be familiar with this. This is concerning a property we have under contract in Minnesota.
Is there is a way to bring the capital partner on the LLC and give them recourse but not equity? They would basically be an internal lender. After we pay them back, we would remove them from the LLC.

Also, At what point does changing ownership inside an LLC trigger a "sale?" and sales tax due. From my understanding, you can't just swap out all the members of the LLC that holds real estate without triggering a sale. Is it true that when you change ownership in an LLC it can trigger a "do on sale" tax situation?

Hi friends, I have a question for any lawyers out there or anyone who may be familiar with this. This is concerning a property we have under contract in Minnesota.  
Is there is a way to bring the capital partner on the LLC and give them recourse but not equity? They would basically be an internal lender. After we pay them back, we would remove them from the LLC.

Also, At what point does changing ownership inside an LLC trigger a "sale?" and sales tax due. From my understanding, you can't just swap out all the members of the LLC that holds real estate without triggering a sale. Is it true that when you change ownership in an LLC it can trigger a "do on sale" tax situation?

@John Underwood, 

yeah thats what i'm realizing too..Will try for the owner carryback. With the owner carryback option, the owner really doesn't have any recourse right, since they are the junior loan..if the buyer were to stop making payments?  Also, What are the advantages to the owner to agree to carryback a part of the downpayment/loan?

Is there such a thing as a 10% DP using a commercial lender? Looking to finance a 4 unit condo in Minnesota for 1.2mil. Thanks!!