All Forum Posts by: Jeff Nash

@Stanley J Black

@Adrian Gatlin are these homes financed in your personal name? If so, it might not just be so simple to create an LLC and transfer them out of your personal name, and their mere creation does not necessarily protect you I agree that having proper insurance and perhaps an additional layer of umbrella coverage can be helpful.

@Stanley J Black

 @Linda Weygant gave a thorough and complete explanation of the technical considerations.  To add to my post, It sounds like the admin is your main concern, but if you use accounting software like QuicKBooks Online you would just have 1 or 2 accounts to handle this scenario.  Just set up the rentals as classes in one account and property management company on its own.  With this many properties I assume you are using someone monthly or periodically (ie your CPA firm) to do the accounting.  If it was just a couple of properties I can see (wouldn’t recommend though) you just using Excel if reported on Schedule E where you just show an income statement and not the balance sheet as well. 

Yes, that appears to be good advice from what I can tell and provides asset protection if done properly.  This is a pretty common scenario when you start having a more sizeable portfolio.  

Hi Travis, I am referring you to @Denver McClure.  I can help too at some point but I would start with him.  Thanks!

@Chris Arnold

What is the estimated gain?  I would also want to know how this potential move fits in the context of your overall portfolio to weigh other options, which there could be (i.e.- qualified opportunity fund - i.e.- "roll the gains").  1031 is out as noted by @Dave Foster.

@Shabana Dean

Feel free to message me with more details and I can see if I'm a fit for your situation.  Thanks!

@Eric Narciso

I would like to know your situation a little bit better but I can help based on the areas you described.  Feel free to message me.  Thanks!

I with @Jeff Copeland.  The wild card is the quality of someone's books and records too, as if they are not in great shape or well organized that drives the cost way up. When you are a new the initial tax return takes longer because of updating the fixed asset listing and carryforwards.  Occasionally prior year mistakes are identified as well and you have to assess the situation and determine how to handle.  With all this said, you are probably looking at a few thousand dollars just for the preparation/compliance work based on your description of the situation.

The real value is the collaboration with a good planner where you are essentially making an investment rather than incurring a cost.  I hope this helps.  

@Daniel Murphy

What is your contribution to this joint venture?  Financial contribution, providing services, both, and what is the nature of the investment (long-term hold, short-term flip), etc.  Are you listed on title?  I would just memorialize in writing what you are doing with the other party so there is no misunderstanding.  If it's a long-term investment reported on Schedule E you can just report 50% of the items.  If it's more of an active operating business arrangement they can just 1099 you for services or your net profit-sharing interest.  You have flexibility.