All Forum Posts by: Lori Lloyd

The material costs, supply chain issues and labor shortages are still big issues in the building industry right now.  I'd say str and co-sign for them would be not only a quicker solution but would still leave you the room you need to be able to flip your str if the market bears a fast roi on it.  

 Can I bring a friend? 

This would be for a cash purchase, no loans. It is my understanding that my 401k cannot be more than a 50% owner, but I may be confusing this with rules under LLC structure. In any event, we would go 50/50 on all expenses and profits with unanimous agreement being a requirement. The other partner is a family member (not direct lineal family) so concerns over agreements are not anticipated. Just wondering if the cost of setting up LLC is even necessary or would we run into more headaches and paperwork and tax implications by going the route of TIC? TIC seems to be a simpler setup for a small investment.

What are the pitfalls and advantages to setting up either an LLC vs simple Tenant-in-common ownership when investing 50/50 with a partner where I am using solo 401k funds and the partner is using their own funds? Other than asset protection on the LLC side, I see no other advantage over going with a TIC setup. The cost factor of setting up an LLC is a potentially the biggest drawback of that setup, along with end of year reporting and K1's etc. This would be for a rehab/rent/resell of one property.