All Forum Posts by: Justin Walters

Thank you for taking the time to read.

I am in Southern Maryland (Charles County), and have been through the eviction process before.  However, following today's hearing with my tenant, I am looking for some clarification.

Tenant had counsel and during the hearing, they requested a 10 day stay.  Judge asked and I declined. 

Judge then asked the tenant how much stuff she had to move out.  Counsel stated she had four kids.

Judge asked me if I would agree to seven (07) days at which point I said yes.

Now looking at the case file online, it states there is a "1 Week Stay. 1/9/24".  What exactly does this mean for me as the landlord?

I know normally the tenant has 10 days for right of restitution.  Following that, I would file the Warrant for Restitution.  Following that, the sheriff would call and schedule the removal of the tenant assuming they do not pay.

So after 1/9/24, what happens?  Does the sheriff come out or do I still file for the Warrant of Restitution? 

Thank you in advance for help me navigate this issue.

I appreciate the replies so far.  I agree, I should have provided a little more detail on the why but sometimes blogs are just a little difficult to get the idea across.

First reason: I wanted to simplify our portfolio being that the current LLC has properties in two separate states requiring me to file as a foreign entity each year. So with that, I was considering creating a joint venture - new main LLC and break our current LLC into "states". So yes, I would have to create two new LLCs. One as the main, JV LLC, one new one for Maryland properties and the second LLC for the Oklahoma properties. Yes, I would have to transfer ownership from the current LLC over to the newly created one to get the properties into their respective "state" LLC.

Second, we have over $1.5M in properties in the current LLC. To spread out the liability, I thought that by doing the first reason above, I would be better protecting our assets by having less of a portfolio in each LLC.

Last, absolutely, we have every intention of finding the right professionals to move this forward once we feel like we have a good understanding of what we are looking for.  I agree that the right professionals have a better idea and understanding of what we should do to best protect our investments however, I am one to need a solid understanding of what I am doing before I jump in.

Thanks for taking the time to read and do hope the background and thought process sheds a little more light on the original post.

This question requires a little background.

Current LLC has four equal partners, each 25% ownership. For this example, we will call this LLC Homer, LLC.

Homer, LLC currently holds five properties. One has a traditional mortgage and the remaining properties used private lending.

Now we are looking to create a new, overarching LLC and would actually like the new one to own, or be the parent company to Homer, LLC.

Question: is that possible? How do we go about making the newly created LLC the parent company of the older LLC founded in 2022?

Thanks in advance.

Thanks @Brian Eastman

To expand, but could we create a new LLC with the four members and mine and my wife portions of the LLC are SDIRAs and the other two not?

And then moving forward, any new properties can be purchased through the new LLC moving forward?

I think I know most of the answers to the proposed question and do know that it will require the proper steps through a real estate attorney and/or CPA.  For my own edification, I wanted to propose the following.

Currently have a four member LLC with ownership split evenly at 25% per member. The LLC is registered in OK and currently has two properties in OK and three in MD (yes, we have it registered as a foreign entity in MD).

Moving forward, I was curious if it would be possible for I and/or my wife to make our individual portions of the LLC a self directed Roth IRA?

Second question, I was curious if anyone recommends that we go ahead and create a new LLC in MD and simply quit claim deed the MD properties from the OK LLC to the newly created MD LLC. We would save a little money by keeping it in one LLC but the savings is minimal.

For you to better understand the business side of the properties, the first OK property is mortgaged traditionally through a bank. The remaining properties have been funded entirely by leveraging a low maintenance account of one of the members which allows the member to borrow against their market assets and then those funds are loaned from their personal LLC to our real estate LLC.

I think I have provided more than enough information but if there are more touch points that are needed, please ask and I will provide.

Thanks for your input and thoughts in advance.

Justin

 Southeast Oklahoma

@Dave Foster thank you for the advice.  I had not considered 1031 it into a new property and THEN doing a cash out to pull those funds back out.  Thank you for your time and feedback!

 Thank for the reply @Jaron Walling.  I should have mentioned it but I have been in discussions with our CPA and I will still end up with a tax bill even after the step up analysis.  I was just curious if there were any ideas that I could consider other than the obvious ones we have come across.  

As for our portfolio, we have six total properties spanning from Ohio, Oklahoma and Maryland. All but one are LTR with the last one being a STR here in MD. We have every intention of scaling our portfolio but with this one specific property, we were hoping to sell to dump the money into the debt obtained while scaling out our current portfolio.

Thanks again for taking the time to respond.

A bit of a backstory.  A couple of years ago following the death of my father, my mother transferred ownership of a property in another state to me and my wife by way of quit claim deed.  I did not put much thought into it since it was only a few months after my fathers passing and had a lot on our minds and plates.  

Flash forward to now.  My wife and I are part owners in a real estate investment company that has 5 properties (3 are in Maryland, 2 are in Oklahoma).  We are in the process of renovating a property to move my elderly mother into here in Maryland.  That now leaves me with the issue of managing the property in Oklahoma that she is moving out of.  We have now realized that we will be getting hit with a capitol tax gain on the property that was deeded to my wife and I.  I know the obvious route of 1031 but just curious if anyone has any other "out-of-the-box" ideas on how we could avoid these taxes.  We were really hoping to sell the property in Oklahoma and drop the net proceeds into this house in Maryland but we already purchased this house in Maryland because I needed the time to complete the renovations.  With that, we are looking at listing her current property in spring summer 2024 which means we would have owned this house in MD for over aa year so a reverse 1031 is not even an option.

Assuming some of the answers will be to just 1031 it into yet another property.  I have also thought about deeding it back to my mother but I honestly do not know what the tax implications would be then either.

Any ideas will be greatly appreciated.

Awesome!  Thanks for the replies so far.