All Forum Posts by: Mark Hill

Hi Avi,

Can you share with me any pictures of the rehabbed unit and current lease terms? Email: [email protected]

Are these 2 bed / 3 bath, or the other way around? Can you send me more info: [email protected]

Bump. I'm interested as well 

This is done via a Quit Claim Deed. Talk to your title company, they can help you with the paperwork and filing. 

This is a bit of a proactive question, as I've just purchased my first property (in Ohio) where I'm handling the property management for a good tenant (remotely). One concern I have is the tenant turn over process and how best to handle the inspection (security deposit), cleaning, keys management, and potential showings for new tenants. If I can find a good property manager, I'd likely hand this over, but for now that's not the case. Is there such a thing as a rental property turn over company that can be leveraged (for a one-time fee), or do most people have local resources (agents, or similar) that help with this process?  

@Katie L. Thanks again, your thorough responses are very much appreciated. 

Yes, you are correct (no notes between us) and title will be held (initially) in their names (married). I totally understand the protections that you would want in place for a normal partnership when money is involved, in this case, it's a "like family" partnership, so those concerns would be minimal. 

I will certainly consult with an attorney. It seems again that it makes the most sense to create a new LLC in CO (a lot cheaper) and ensure my participation stays outside of "doing business" in CA.

If anyone has references for real estate attorney's in the Bay Area, I'd appreciate it.  

@Katie L. 

Thanks for your response. 

Yes, my partners would initially be purchasing the property in their name (not the LLC).

I was under the impression that my existing operating agreement could be amended in a way that they would be entitled to 50% ownership of a "specific property", not the entire LLC portfolio. Is that not allowed/legal?

As for the finances, I was planning to wire my half of the funds (20% down) directly to the title company. These funds would remain in the property. No note or loan. 

My challenge, as stated above, is that creating another LLC for these joint owned properties, I'll be forced to pay another $800 to the CA FTB fee ($1600 total/year), which is very expensive and hard to avoid, even as a silent partner.

Following up to this, as I'm still struggling to understand the best setup. 

Since I already have an LLC (in CA), would it be best to add my partners who live in Colorado as 50% owners (per property)?

Ultimately, I will have a mix of properties that I own 100% and some that I'll own 50%. 

Here is the scenario: We are purchasing a property in Ohio. I'll be contributing 50% of the down payment, closing costs, etc. However, they will be purchasing the property and obtaining the loan in their name, as well as performing property management. I figure we would quit claim deed to my existing LLC after closing with an updated operating agreement (amendment) stating 50/50 ownership of this property.  

Rinse & Repeat for additional acquisitions. 

This seems to be the most economical approach for CA taxes. 

Is this how everyone else is doing it? 

Am I missing something? 

Thanks! 

Hi Darren, can you email me the additional details: [email protected] 

Hi Brian, I'm interested in this property. Can you PM me additional details? All utilities paid by landlord?