All Forum Posts by: Noah Loveless

Quote from @Rodrigo Hernandez:

Hi all,

I'm looking for some guidance here as I have a property that's under my name and a multi-partner LLC with friends. We have a business bank account for the LLC and I want to begin collecting rent and paying the mortgage with that bank account to keep my personal finances separately. Are there any tax consequences or restrictions in doing so? Thank you in advance for your help.

 Hi Rodrigo,

I actually do this with my rentals. Per my CPA, we set our LLC up as jointly owned disregarded entity through the IRS and received an EIN number. This allows everything to run through your personal return.

We collect rents and pay mortgages directly from our business checking account. Pay all utilities, contractors, and other bills through this account. Income and expense are tracked through an online accounting platform and we submit the tax forms from the platform. 

When I created the LLC, we set it up as a real estate rental business. You do not need any professional licensing to manage your own properties. If your looking to manage other landlords properties through this LLC, you will need to get licensed as a real estate sales professional and follow your state/municipality laws and regulations. (however, I would never manage others through my own property management company... just my opinion)

If you've set up your LLC as a partnership, you will not be designated as a disregarded entity and a seperate business tax return will need to be completed.

Noah

I would cut my loses (and potential future loses) and sell. Losing approx $5-10K per month during summer seems excessive. What will those monthly loses to be if something breaks, like a pool, hot tube or any other hospitality essentials. 

However, if you have other investments that can carry these losses and still have positive portfolio cashflow AND gaining significant equity, maybe keep it.... 

Cheers,

Noah

I second what Yanina said, reach out to a real estate agent and ask for a referral on whom they use for there listing photos. I use the same photographer on my szle listings as for my rental listings. They usually have a 24hr turnaround and have them in your email for easy download.

Good luck,

Noah

Quote from @Elvin William:

Here is another question. What if my agent gets double dip. Get paid by me and by seller. Is there any way I can find out how much agent gets paid?

 Hi Elvin,

Just curious why it matters to you if the agent double tips (i.e Duel agency)? If said agent performs and double dipping (i.e Duel agency) is legal in his/her state, shouldn't they be compensated for there efforts?

Quote from @Tj M.:

@Noah Loveless just curious why not to use zelle? 

@Tj M.

No other reason than if your scaling your portfolio and looking to find a better way than giving your bank account info out to tenants, Zelle is pretty much the same thing. If you are looking to scale, find yourself an online platform that you can grow into that has payment options, maintenance request, tenant screening, etc... Most of these online platforms can be set up to send automatic late fee notices and payment, archive tenant contact info and accounting. Zelle has its uses, I just don't think its a good option for running a rental business. 

Hi Brian,

We use RentRedi to collect rent. Very straight forward to use and cost effective. In addition to RentRedi, there are many other similar online servicers you can choose from. I would stay away form Zelle, PayPal and similar payment services.

Good luck,

Noah

Quote from @Jason Wray:

Zach,

New owner comes with a new lease agreement and usually the previous owner has some insight as to what was promised and what will change. 

Hey Zach and Jason,

Leases transfer with upon sale of leased property. Not only the lease rules and agreements, but duration and lease rate. My wife and I have purchased two FHA financed four-plex's and each tenant, even month to month tenancy, must be adhered to. This is due to tenancy laws, rather than financing type.  Please see link below for reference.

https://www.avail.co/education/articles/how-to-buy-or-sell-a...

 Hope this helps,

Noah

Quote from @Ryan Murdock:

@Noah Loveless Charleston, sc and Shallotte, NC, but moved here last fall for the military, and am interested in investing locally in the future.

Awesome, Ryan. If you ever want to talk real estate, DM me and let’s meet up for coffee. 

Quote from @Ryan Murdock:

Hello BiggerPockets community! I'm Ryan Murdock from Anchorage, AK, passionate about real estate investing for 4+ years now. I'm particularly passionate about Long-Term Buy and Hold Investing.

Outside of real estate, I enjoy Triathlon, Beer Runs and races, and pretty much any outdoor fitness type activity.

Excited to learn and connect with you all!

 Hey Ryan. 

Welcome and congrats on your first post! Are your investments here in Alaska or in the lower 48? 

Anchorage, Alaska