All Forum Posts by: Nik S.

@Joshua D.

I refuse to buy any SFH for scaling purposes. It all depends on your goals & strategies. I find multi-family a better way to scale. Sure, it cost more capital and perhaps more credentials to secure financing.. I know people who own 10 SFH's and really cash flow well Bc of there forced improvement and overall strong market. For me, 10 SFH won't create the wealth I am looking for. With multi-family, apartment buildings in particular, I find that scaling / leveraging can really do wonders with time. I'm a hands off investor pretty much, my cash flow per door is probably bare minimum for some. I am currently in contract for a "B" apartment building..awesome area. Room to grow. Paying the price (low cap but still feasible)... CoC is a modest 10%. People would say ohhh my but your taking on 2mm worth of debt... I'm not paying it, tenants are. Cash flow is cool but net worth is even better. All depends on your situation.

After conversing with title co and atty, I will be purchasing a NEW LLC in which the seller created. Eliminating a few of the other precautions mentioned. I will follow up shortly. FYI, this is legal in ohio. As all have mentioned, title company will continue to handle the transaction as normal. Thanks to everyone for your support and info!

Yes that’s what I want to do however there will be a public display of purchase price which in my area triggers reassessment. 

Drop property into a new llc how? 

Thank you all for the input. Anxiously awaiting till tomorrow so I can figure this out.

@John Lenhart

Awesome info. Your info above makes sense. I am working with a larger title company so looking forward to there response tomorrow. I appreciate your help.

@Steve Vaughan

Ok I had a feeling this was the case....need to act quick. Can/Do attorneys handle the prorations etc?

@Steve Vaughan

Thanks for the responses Steve. My next question is who facilities this type of transaction. As of now, a title company just got our contract. Is this strictly an atty transaction? Or title company has to be involved to handle escrows, prorations etc..? I have meeting setup with an atty tmwr as well as email out to VP of title company handling transaction. Just happens that this Labor day of mine is being consumed by this :-)

LLC has existed 10 years. It is the only asset in the LLC. Husband / Wife are members. I am not trying to save the conveyance fee just need to shield purchase price from public records to avoid tax reassessment (44k annual increase). I've read the success on it but yet to do it. This deal needs this to happen. Deal PP is $2.2m

@Wayne Brooks

Saving of 44k annually. All new to me on hence my confusion.

@Wayne Brooks

My understanding is if I purchase the llc that owns the real estate, there’s no recorded transfer with the purchase price showing. Therefore mitigate risk of tax reassessment. Without a purchase price or conveyance fee, the property will go under the radar. It’s a legal way for now, so why not take advantage of it.