All Forum Posts by: Leta Eydelberg

@Mark Pedroza, thank you.

What are the best Landlord / Investor Associations we should join in California? Rental properties are in Sacramento, CA. Looking for information, forms, help with background checks, and any other help we might need.

Thank you,

Mike, 

Thanks for your answer. 

I read everything I could find and am aware of the points you listed. I however still do not know what would be the process to transfer investment property with a mortgage in our name into LLC and avoid the pitfalls you mentioned.

I have read many discussions here but could not find the answer. 

My husband and I are competing 1031 exchange and buying several investment properties. We had the initial property in our name and as a result these new properties are in our name as well. 

We'd like to form an LLC and tranfer eventually the properties we own into LLC. My question is how can we do that? If it's possible, what is the process?

Auxiliary question: what form of LLC is best to choose?

We are located in California.

Thank you!

@Dave Foster,

Thank you very much for your insight! We'll be learning more.

@Dave Foster, 

When we realized it's important who QI is it was too late to change them, we were closing our sale next day. So we'll have to do the best we can now :)

I am surprised though by the comments that we are at their mercy. There must be rules everyone follows, they cannot just do what what they please without any reason.

We'll be talking to an attorney, but from the replies here and other sources I understand that it's possible to move the new properties to LLC at some point in the future, once 1031 is complete. Is that correct and what is a good time to do so? What do other people in similar situation (Buying the property in their name and then deciding to transfer it to LLC) did?

Thank you for all the comments!

Steven and Michael,

I am sure you are right. We did try to find CPA back in November and met a couple of people highly recommended. We left very discouraged. Besides the fact that they gave us opposite answers to our questions, they did not seem to be dealing with investment properties much at all. 

So now, as I came across this forum a few weeks ago, we realized that we should try finding an attorney and CPA here as members are very knowledgeable. As Michael said, better late than never.

As @ Bill Hampton suggested, we are open to working remotely. 

Thanks again for all the replies!

Hello,

We are looking for Real Estate Attorney and/or CPA to consult about best practices for buying and managing investment properties. 

A little of our background.

We are located in North California. We owned one investment property which we just sold and are in the process of doing 1031 exchange for multiple properties. We have tons of questions. For example:

Our old property was in our name, and we'd prefer to have LLC instead but were told that we cannot change ownership status during 1031. Is that correct? What should we do?

How to set up LLC and transfer ownership of the investments? How to process payments and what accounts to use? Basically, what are the best practices to do to protect us and from the tax standpoint?

We would really like to urgently find a knowledgeable attorney and CPA to work with.

Thank you for any advice and recommendation!

Dave,

Thank you so much for your answer! It made things much more clear and logical. 

We are preparing to do our first 1031 exchange in the next couple of months. We read all the standard descriptions and begin to get clearer picture, but have an additional complication and are not sure how it changes the picture.

In 2015 we bought a triplex. We moved into one unit and rented two others for 2 years. After that we moved out and rented the unit we lived in for another 2+ years. Now we are selling this investment property and trying to figure out how to proceed with 1031. If I understand correctly, we can have a third of the gain excluded from the capital gains taxes since we lived there for 2 years? Then what does it mean for 1031? Can we exchange only 2/3 of the property?

We don't have CPA yet and when we tried to consult couple of CPAs recommended to us, it was clear they have not dealt with investments and were not sure what to say, so we are not comfortable hiring them.

Any clarification would be greatly appreciated!