All Forum Posts by: Nikk Wong

Hi, I have a tax question. My dad has real estate in his name. It generates around 14k a year (net income). I basically manage the property as an airbnb rental. 

He wants the income to be put in my name. We do have a business registered with the state that we're both registered as owners on and pay taxes through. However, this business does not own the property. 

What are all of the options for moving this income to my name (preferrably schedule E), without having to transfer the title (there is still a mortgage on the property).

Thank you! 

Thanks! These are all very useful questions and I am learning a lot about what to bring to an LLC attorney just through the discussion here. She is getting an outside loan on her own credit.

-- A promote is reasonable for securing all that extra financing but not a 20% one.
I'm sorry can you explain this? She would already control 90% as she is bringing 2.7M of funds to the table (700k cash, 2M debt).

-- I’d separate split of cash flow from split of equity too. Good luck, look forward to hearing more

This is currently the plan.

This is correct, since she's financing the rest of the purchase herself.  

I'm not sure how it's relevant that they're getting a majority of the income since she's contributing more financially. The only thing relevant to me is my ROI.

At least that's how it works in my mind. I want to understand what the other potential pitfalls of minority ownership are. I would definitely talk to an LLC attorney to make sure I'm properly covered.

Thanks for the feedback. Is there something about 12.5% specifically? 

What do you think the disadvantages of being a minority in this circumstance could be? She could demand expensive renovations and I have to pony up? Other examples? 

Thank you! 

Hi, thank you for reading. I am a new-ish property investor. I have 4 properties that are all single-family which I rent out to long term tenants + airbnb. The income covers the mortgage and some of the prop tax on all of my units. 

I am considering purchasing an apartment with a not-so-close friend. The property is 3M. I am putting down 300k cash. The friend would be putting down 700k and assuming a loan in her name to cover the rest. The revenue split would be according to ownership share, me with 10% and her with 90%. She would buy the property alone but the owner wants $1M cash; which she does not have, which is why I am involved.

The financials on the property look good. There are 12 units each of which nets $1700. There is a lot of upside potential as the units need renovations. The area is desirable; and the lot may have other revenue producing opportunities. The property is in good shape. The current owner is old and reportedly wants to retire.

My friend is very smart (was a big name at google, amazon, etc) and is experienced with multiple larger units. I am 15 years younger than her and have somewhat assumed an apprenticeship role in the relationship. I am 30 and have a high paying job and a decent amount of savings.

We're trying to draft an operating agreement together as an LLC and I am trying to make sure my bases are covered. Things that we have discussed are rights of refusal if either party wants to sell their position; a minimum hold period of 7 years, & only making withdrawals if there is 10k reserve in the shared account.

I am curious to hear anyone's thoughts on what the obvious pitfalls could be for me as a 10% owner, and if there is anything I am overlooking. Thank you!