All Forum Posts by: Logan Allec

Disia, I did this but it was out in Santa Clarita. Most of the time the numbers didn't work on 3- and 4-units in LA proper (thanks rent control!), and when they did, you'd better believe the cash buyers were ready to pounce. Hence why I expanded my search to the outskirts such as Santa Clarita.

@Bradley Miller You could also live there another 6 months, get a partial 121 exclusion, and 1031 the rest into a 6- or 8-unit and just scale up from there.

But honestly it's hard to answer this question without knowing what your goal is with real estate...what's your goal?  Do you want cash flow so you can "retire" early?  Do you want to grow your net worth?  Etc.

Not sure if this is the right place to post this, but here goes.

A film student wants to use our house to shoot her thesis film.

Our HOA is cool with it.

The student has insurance through her university (USC here in LA).

Here is what she said: "We will be filiming for 12 hours for 3 days and have one day to prep.  Shoot hours would be either 8-8 or 9-9.  Can I know the price for the location to make sure it fits my budget?"

It'd be on weekdays, so my wife's and my schedule wouldn't be intruded on too much.

So how do I go about pricing something like this?  What are the questions I should be asking?

Thanks!

@Jonathan Gordon there are plenty of assets you can invest in (leveraged) without W-2 income with the kind of cash you have (I'm assuming it's a lot).  Loan is based on the asset not your W-2 or credit or lack thereof.

Don't rush into anything.  I see this all the time with my clients.  When they have a lot of money, they're tempted to just "jump in" and end up making poor investment decisions and justify it because they have a lot of cash and can afford to lose.

@Brandon Gedalje, we are in Santa Clarita as well off Copper Hill.  Good to connect with other local investors.

@Theresa Allison By "profits" do you mean the excess of the proceeds over the mortgage (if any), rehab costs, and holding costs?

@Drew Oberholtzer, just to get some more detail, is it correct that you will be contributing these properties into an LLC that is taxed as a partnership for federal income tax purposes in exchange for an interest in the LLC?

"If I create an LLC in Ohio, what types of fees are involved?"

You have to file the LLC's Articles of Organization with the Ohio Secretary of State. The annual fee as of today is $99.

Then of course you'd have to draft an LLC's operating agreement. You could hire an attorney to do this for you or you could grab some boilerplate template online that may or may not be worthless. This fee of course varies depending on the approach you take.

You also need a registered agent in Ohio, though there are many services who will serve as your statutory agent (equivalent of a registered agent in California) for a nominal annual fee.

"Do I need to pay CA their minimum $800/year LLC fee if I register it as an Ohio LLC....?"

The answer is almost always YES since California considers an LLC as "doing business in California" and therefore required to register with the California Secretary of State, file the annual Form 568, and pay the annual $800 LLC tax if you, as a member of the LLC, do pretty much anything anything on the LLC's behalf while you are in California.

Below are two excerpts from FTB Form 3556 that make the state's position pretty clear.

"Thoughts and advice are greatly appreciated!"

Consult with qualified legal and tax advisors before forming an LLC.

@Erik Nizenkoff I would just place what you purchased in service when escrow closed and then just start a new clock on the new assets.  Keep in mind that you should allocate them between land, building, etc., just as you did your original purchase.

@Erik Nizenkoff, when was the building placed in service?  Or were tenants in-place when you purchased?