All Forum Posts by: Mahender Bist

Thanks for your answers. I want to clarify further. I am a passive investor in the Self Storage Syndication (from which I got a depreciation K1 25K)while I hold a REPS status. I am a passive stock investor with an annual gain of 250K (for example). I don't have any profit from RE transactions, and I am passing all the losses via K1 as an active investor (40K Loss).

I want to see if I can Syndication depreciation can also be deducted from the passive gains from stocks?

0 Votes

Hi Pros,

I invested in a Self-storage syndication (Ohio) and received an accelerated depreciation loss (K1) from the syndicate management. I want to find out if we can offset the depreciation loss from the self-storage (K1) against the passive short-term gains from stock investing.
Appreciate your valuable insights!

Thanks,
Mahender Bist
California

0 Votes

Dear BiggerPockets Experts,

I'm reaching out to the Birmingham, AL, community on BiggerPockets to seek recommendations for a reliable and skilled general contractor.

I am an out-of-state investor based in California. I plan to invest in properties in the Birmingham area requiring significant renovations. Finding a trustworthy contractor is crucial as I build my team remotely.

I'm looking for a contractor who:

Has experience with full-scale renovations.
Is reliable, communicative, and meets deadlines.
Can provide references from past clients.
Is familiar with Birmingham's permitting and inspection processes.

Any recommendations or insights you can provide would be immensely helpful in building my team.

Thank you for your time and expertise!

Thanks,

Mahender Bist

4 Votes

Birmingham, Alabama

Quote from @Ashish Acharya:

Quote from @Mahender Bist:

Quote from @Ashish Acharya:

@Mahender Bist For properties in Alabama, forming an Alabama LLC is simpler and provides property-specific legal protection without requiring foreign LLC registration in the state. While Wyoming LLCs offer anonymity and tax benefits, you'd still need to register it in Alabama and California, adding costs and complexity.

If you are not flipping properties, there is no need for Rehab LLC.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Thanks @Ashish Acharya! You mentioned that if I create an LLC in AL, I don't need to create a foreign LLC in CA. Can you share more insights on this?

If your Alabama LLC conducts all operations and income generation strictly in Alabama, you may not need to register it as a foreign LLC in California. However, California requires foreign registration and the $800 annual franchise tax if the LLC is deemed to be "doing business" there, such as managing operations or signing contracts from California. CA also deems you doing business in CA if you are general member of the LLC. People use anonymous structure to avoid this. Your attorney or CPA should be able to create tax efficient structure for you.

To avoid this, keep management and decision-making localized to Alabama, and consult a CPA or attorney to ensure compliance with both states' regulations.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Thanks Ashish, Great information. Appreciate it.

0 Votes

Quote from @Greg Parker:

All good points. Some great tips I have learned over the years: bump every property liability coverage from 300k to 1M. It does not cost very much more. Get the umbrella policy. I think I pay $16/mo for an additional 1M personal liability protection. But, i do have a couple of LLC's, mainly for transferring property to children or spouse when I drop dead. Just have formation docs written as "last man standing" gets it all.

Thanks @Greg Parker. I will use this blueprint for Liability and refine it further based on my investment. Appreciate your sharing!

1 Vote

Quote from @Nicholas L.:

@Mahender Bist

i know this wasn't your question... but i have to ask. you state that you're based in CA and are about to start buying properties in AL. do you know the market in Alabama? do you have a team there? do you have experience in renovation? will you go there in person to supervise and check in on your projects?

all of that is way more important than an LLC.

Thanks, @Nicholas A. I did form a team in AL. I have studied the market there for a bit now and am comfortable with investing with decent Cash Flow and modest property price gains. I agree that these are more important factors.

0 Votes

Quote from @Ashish Acharya:

Thanks @Ashish Acharya! You mentioned that if I create an LLC in AL, I don't need to create a foreign LLC in CA. Can you share more insights on this?

0 Votes

Quote from @Marcus Auerbach:

Quote from @Corby Goade:

The best advice I can give is talk with your attorney. BP is probably the worst place on the planet to get legal advice. You'll get people spewing gospel that have never done a deal.

There's no right or wrong way to do this, just varying levels of risk and reward and YOU need to understand what they are for whatever strategy you choose.

@Nathan Gesner said it best, IMHO- the need for an LLC is totally exaggerated on BP. I'm not saying you shouldn't have one, but it shouldn't stop you from taking action either. If you know and follow the law, especially when it comes to PM, there is very little to worry about. When you start "picking" tenants or doing favors or acts of kindness for tenants is really when you can get yourself in legal trouble.

Best of luck!

Asking an attorney if you have enough legal protection is like asking an insurance sales guy if you have enough insurance. The answer is always no.

LLCs are overhyped, especially for people starting out with buy and hold and are not even running a real "business" (yet). Get good insurance, plus an umbrella policy. I'll skip the details, you'll find thousands of posts on BP on why.

You probably want an LLC for your flips in the State where you flip. Read a few books about flipping, they spell out the details.

Thanks @Marcus Auerbach!

0 Votes

All Forum Posts by: Mahender Bist

Mahender Bist has started 3 posts and replied 13 times.

Post: Do you know a great contractor in Birmingham AL for an out of state investor

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Do you know a great contractor in Birmingham AL for an out of state investor

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Mahender Bist has started 3 posts and replied 13 times.

Biggerpockets Logo Post: Do you know a great contractor in Birmingham AL for an out of state investor

Biggerpockets Logo Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Biggerpockets Logo Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Biggerpockets Logo Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Biggerpockets Logo Post: Do you know a great contractor in Birmingham AL for an out of state investor

Biggerpockets Logo Post: Where to form LLC for legal protection - Business in AL, Living in CA

Biggerpockets Logo Post: Where to form LLC for legal protection - Business in AL, Living in CA

Biggerpockets Logo Post: Where to form LLC for legal protection - Business in AL, Living in CA

Biggerpockets Logo Post: Where to form LLC for legal protection - Business in AL, Living in CA

Biggerpockets Logo Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Do you know a great contractor in Birmingham AL for an out of state investor

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Can we take Syndication Depreciation (loss) to offset Stock Gains?

Post: Do you know a great contractor in Birmingham AL for an out of state investor

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA

Post: Where to form LLC for legal protection - Business in AL, Living in CA