All Forum Posts by: Steve Vu

Awesome post; it got me started to write up my own Business Plan! Thanks for the inspiration and best of luck =)

@Johnson H. Thanks for the heads up.  I look forward to talk to you at the meetup.

city-data.com is pretty good as well when researching new cities.

@Account Closed  Awesome, that should get me started on the reading for a while. Thanks!

@Johnson H. The two options you proposed seem good and are pretty much what I had in mind. 

@Joe Fairless Thanks for the link.

@Curt Davis Thanks for the response. I guess I wasn't clear enough. 

Let's say I have a friend who wants to loan me 100k, and I will eventually use that money for real estate. Is there anything I need to do to keep that money "clean" and free of taxes. I might use that money to purchase several properties, do some refinancing with banks, etc... It wouldn't be necessarily all tied up in one deal.

Same thing if my friend wants to send me 100k for me to manage it, anything I need to do prior to accepting the money?

I know a few people who have shown interest in funding some of my future deals and I was wondering what was the best way to approach this from a legal/tax standpoint. Ultimately, I know I'll need to talk to an attorney, but I wanted to get a general idea first and do more reading on it. 

I have two scenarios I want to address:

1) They fund 100% of the deal as a loan. 

and

2) They want me to manage their money and invest it for them in real estate.

What vehicle would I use to have them transfer me the money, without incurring taxes? I don't want the IRS to think that I am getting "free" money as gifts, laundering money, or anything of that sort. 

Am I allowed to just have them wire me the money to a separate bank account (intended exclusively for funding deals like this) or is it better to create an LLC with a new bank account? If an LLC was required, would I be allowed to run both scenarios under the same LLC?

Is there any particular documentation required for either scenario?

I may be completely off base, so let me know if there are other ways to run this. Thanks!

Thanks for putting this together. I will be coming and I'll try to get @Cameron Chew out too.

@Randy F. Thanks again for getting back to me, greatly appreciate it!

@Robert Taylor  Thanks for taking the time to write that long post =) I did keep a lot of the better area in my criteria, just in case something cheap showed up there. I will, however, most likely focus on slightly worse area where the crime rate is still relatively low, but with lower house prices. I checked out the blog you mentioned and read a bunch of his posts. I think it is a very good blog and gives really good insight on landlording in MKE. At first I got a little turned off by some of the posts (ie: how the city essentially drives foreclosed homes to useless pieces of junk or how some inspector would give a landlord a hard time for minor items such as a small crack in the exterior paint every time he would come by the property), but I then realized that these were mostly extreme and worst case scenario. I am now aware that these things happen, but hope it isn't the norm or a daily occurrence. Maybe we can chat some more about it when we meet. I will make sure to contact you via PM to set up a meeting in Milwaukee; it would be great to meet you in person and chat some more!

Hello BP,

It is now official, I will be coming to Milwaukee on August 21-24th to check out the city for my future out of state investing project. I have already booked my flight/hotel/car, so there is no turning back! I am currently setting up some meetings with a few local BP members, but I am always open to meet more people and chat! So feel free to reach out and we can arrange something for that week end.

I am really excited about this trip, and will make sure to give you guys a trip report when I come back.

This wouldn't have been possible without this amazing forum, thank you again BP!

Khang

It was definitely great to meet everyone there and I'm really glad I came out for the event. Thanks again for putting this together @Johnson H.