All Forum Posts by: Eric S.

Quote from @Yonah Weiss:

Quote from @Eric S.:

I am currently purchasing the LLC that the property is under. As a partnership myself being 95% owner and another one of my other LLC being 5% owner of the current LLC the property is under.

@Eric S. to clarify, are you purchasing the property from yourself (or an LLC that you own)?

If you are a partial owner, you would need to do section 754 step up of basis to the new purchase price. But if you are more than 50% owner, and just 'selling' to another entity that you own, that is considered a non-arms-length transaction, and you wouldn't be able to step up basis, or be able to take depreciation based on the new purchase price.

@Yonah Weiss. I am Purchasing the property from another owner, but It will be in the same llc as the previous owner (usually when I purchase the property I put it into a new llc). Because I am taking over the previous llc that the property is in didn’t know if it would change how I can do things. Hope this clarifies. Thanks! 

Hi All,

I am purchasing an apt building and purchasing 100% of the current shares of the llc that it is currently in. I am doing this for two reasons to avoid conveyance fee and to avoid county to reassess the property and doubling the annual taxes.

I am currently purchasing the LLC that the property is under. As a partnership myself being 95% owner and another one of my other LLC being 5% owner of the current LLC the property is under. I was told that if I forms partnership that I could do section 754 election That would allow me to set up the basis of the property to match the purchase price of 1.7 million.

I want to confirm this is correct and would allow me to do a full cost segregation at the price I am purchasing the property for and not have to include any of the depreciation the previous owner already took since I am currently taking over the llc the property is under.

Secondly,

since this is mid year I would not be responsible for doing a tax return for the months prior to me attaining the property and this would not have to pay taxes on the income collected  on the property nor would I need to pay any payroll roll taxes he currently pays one persons salary a property manager. Thank you all appreciate all advice, comments and suggestions! 

I am purchasing an apt building and to avoid trigger a tax reassessment I am buying 100% interest in the current llc it belongs to. I typically have done drop and swaps but the bird of education for the city I’m in has caught on.

My questions are

If I do this am I still allowed to do cost segregation? Or since I purchase the current LLC I will have to continue to follow the depreciation the current owner has taken?

I would be the only member of the llc so would be treated as pass through entity.

Thank you all for your help!

Hi everyone, I know can't use an Fha Loan and purchase a property with and LLC that you form, but what if a 4 unit I want to purchase is already in an LLC, would The owner have to put it back in his name? If he doesn't would the LLC just be dissolved at the time of title transfer to myself? Is there anyway to not show the price paid for when using and FHA like a drop and swap? Thanks!

New research shows that flippers and investors are more responsible for the housing crash of 2008 and near economic collapse, then subprime borrowers per this article https://qz.com/1064061/house-flippers-triggered-the-us-housing-market-crash-not-poor-subprime-borrowers-a-new-study-shows/ What are everyone's thoughts?

Thanks for all the feedback everyone!

Thanks for the info @Bernie Neyer . What system did you purchase?

Looking for experiences in installing camera systems in common areas in apt buildings. I have 3 storie apt building and thinking about installing cameras in the common hallways and one near the front entrance. Anyone share any feedback good or bad. Any brands they would recommend. The area is relatively good area and has good tenants for the most part, but recently a tenant left a very rude note on another tenant's door about being too loud. I feel it would naturally deter any bad behavior and if something was to happen concrete evidence to show the tenant and if worse the court's something happening. Also, depending on the person may provide additional security and comfort knowing that the building is being monitored. Thoughts?

Everyone thank you for your thoughts. Other concern if it starts going off erroneously and bothered the tenants. Thanks again for the suggestions.

Thanks Ray,

Any thoughts best way to manage maintenance, I don't get myself in a liability situation where we know the code and something happens and can be blamed on us. Thanks!