All Forum Posts by: Matt N.

Hi all, I’m looking to acquire a few $3mm plus apartment buildings in Tampa/St.Pete area. I’m trying to find a commercial broker whose known in the area for specializing in multi-million dollar commercial deals and has listed and helped buyer agent in over 30+. If anyone has any recs, would greatly appreciate it!

Great. Thanks for the help. 

As we've driven around this weekend (about to leave), we have enjoyed the Redington area and a lot of the areas down the St Pete beach. About to head to Treasure Island on way to Airport. We also liked the St Pete downtown area (looked like it was being upgraded with new condos, etc) but too far from beach for what we are going for for living. 

We are leaning toward single family home that is walking distance to the beach on one of the side streets going down. Still looking at condos that don't have restrictions on renting out if we leave a few years from now for work and want to keep as vacation home. 

Our objective is to locate the area that most aligns with our lifestyle (we are 30) and would love some suggestions. Looking for a 3 bed 1 bath that needs some updating but not a full on flip. I own 14 properties in STL and have done a lot of rentals and flips over the past few years and our objective with this one is much different being a house we want to live in. But in my nature not to pay full price for an upgraded property when I can upgrade it as I like. If anyone has any suggestions with the above, I would love to chat! We are really trying to get a feel for the area and have up to 5 months that we can do research, come down and visit, etc. so we have time. And worst case scenario, we can rent for a few months while having feet on the ground. But I would love to meet some of the investors in the area and realtors as I'm a realtor myself, investor and attorney and have gotten to know almost everyone in STL market and starting from scratch! First things first though we are trying to identify the areas near the beach to stay away from and get recommendations from those with experience here on where they recommend for a younger couple. Price range is up to $500k, which I have seen a lot within the price range. 

Hi all!

I am looking at beachfront property in St Petersburg (to live in) but, ultimately, to be able to put on air bnb when we move out of it and use as a vacation home. My wife and I are STL natives and have 14 properties there but do not know the Tampa St. Petersburg market. Not necessarily looking for a huge cash flow deal but rather suggestions from anyone familiar with the area on maybe areas or condo associations to look at, specific areas you'd recommend or recommend staying away from. We'd like to be around $400k Mark for 2 bedroom - 3 bedroom and understand we may need to go a little higher. We are 29/30 age group. Beachfront looking over ocean is one criteria. 

Thanks for any help and would love to meet some investors in the area when we officially make the move!

I currently do about a flip per month in the St. Louis area and looking for a good, well-priced contractor who can handle deals start to finish. I have one crew but the GC is moving out of state so I am hoping to bid up the next project with a few referrals. Just curious if anyone had any recommendations? Thanks!

Hey Al - thank you for the response. Do you have an excerpt or blurb from your operating agreement dealing with this specific issue? I can craft the language according to my partnership but hoping to get ideas of what others are doing that may have had it reviewed by an attorney already. @Al Wilson

Just curious if anyone has come across an operating agreement that speaks to the situation where one person is supplying the capital and one person is providing the services, finding property, placing tenants, etc. While it is a 50/50 interest split, we would like to make the person who is securing the tenants and finding the properties capable of receiving a large distribution each year based on those fees. 

I'm hoping for some sort of template or language that someone has come across so I can put something together before seeing the attorney (I am an attorney but do not practice this area of law and will have a reduced rate if I put something together prior). Would love any thoughts!

Originally posted by @Blake Meester:

@Matt N.

Great info. Just so I know I am understanding what you're saying. 

For LLC, I am contributing none of the $300k -- that is the business partner. So I will have to report the distribution as income and the LLC will get the deduction, correct? So when we file taxes, we just write that income off as an expense on the LLC. Or do I have that wrong?

Before we received the checks or the debit card for the LLC, I purchased around $4,500 worth of items (earnest money, LLC filings, Checks, inspections, etc.) from my personal account. I then wrote myself a check to reimburse myself that amount. That would not count as taxable income, correct?

And are there any strategies I might be able to use going forward to limit tax exposure with the setup we have? 

Thx!!!

I formed a partnership with an investor and we have $300k sitting in the operating account. Rather than paying a property manager a $1,000 fee to place our tenants in the property, I am doing that and partner told me I could take a distribution for that or write myself a check from the LLC. We have similar items that would allow me to take a fee.

I'm looking for guidance on how to strategically do this.

Since we have contributed $300k to the LLC, and it far in excess of what I am taking out, wouldn't the distributions only reduce our basis in the LLC and have no tax impact on me?

And is there anything that I need to be aware of as far as unequal basis to my partner going forward? I am struggling with wrapping my head around this idea and how that works. 

Hi All -- curious if any St. Louis investors have any recommendations on a commercial lender who can refinance properties within 3 months of a cash purchase based on appraised value. 

I'm currently purchasing properties cash, rehabbing and renting out and my current commercial lender, who I started with, is not able to refinance based on appraised value for 6 months. Would love any recommendations on banks/credit unions to call as I hope to pull the $ out sooner to continue purchasing. Thanks!

Yup, this is a two member LLC.

The advice given to me is that we have the main LLC as the holding company LLC that governs the partnership, funds the properties and pays for the expenses.

We then create a new LLC that will hold several properties at a time. We do not need a new LLC for each property until we have a lot of equity in the properties. Most people have one LLC that holds all their properties due to insurance coverage being able to cover liability suites is what it sounds like. I thought I would set up a few LLCs that will hold 4-5 properties each, and then, when those properties have about 60% equity in 10 years, we can quick claim them into a few additional LLCs for even further protection..

Just wasn't sure if there was a more efficient way to do it since we are using our main LLC bank account to pay for everything (properties, mortgages, maintenance, etc).