All Forum Posts by: Randy Landman

Our entity is an LLC (partnership) with my wife and I as members.

So we have some private investors in our rental business LLC. The loans are unsecured. My account says that I do not need to file a 1099-INT because I am not in the trade or business of lending. I was just wonder what others who have private investors are doing. Or what any other CPAs would say.

Try Peoples Bank, American Bank of Missouri, or West Community Credit Union.

That would depend on what you are wanting to do. Are you interested in wholesaling, flipping, or rentals?

I try to get a policy that covers theft and vandalism on a vacant dwelling.  Foremost is one company.  Some American Family agents have one also.   

@Brandon Hall I was using our personal HELOC to buy rentals that we owned under our personal names and I was doing as you described and tracing the interest over to Schedule E. But now I am going to start using the money from our personal HELOC to purchase flips in our LLC. Could the interest be traced to the LLC's 1065? or does the money need to be contributed to the LLC and interested deducted under schedule A?

Your taxes would be the same as any other rental. Just make sure to deduct all of your expenses - maintenance, repairs, property taxes, insurance, interest, management fees, etc. And don't forget to take a depreciation deduction. If you purchased the property this year then talk with your cpa about getting the best land vs improvement ratio to increase your depreciation. If you have a taxable loss after depreciation then that could offset some of your W2 income (depending on your income level) and at least save some money on taxes. As for the second part of your question, I'm not sure what you mean. It sounds like you have an additional monthly expense (rental that you have to feed), not an additional income.

Typically for a rental If I have the time to shop around I buy used or an open box item (scratched, dented, returned, floor model, or discontinued) and don't worry about the extended warranty. But if I'm tight on time then I just check for the best sale at the moment and take that, again no extended warranty. If I had room at home to keep a few cheap spares I would, but I like my garage too much. I have a spare garage I could use for that purpose, but I make more money renting the garage out than I would save in appliance costs, so I'd rather let HD store them for me until I need one. I did buy a extended warranty for $50 one time on a hybrid hot water. The technology was new and unproven, so they were offering the warranty cheap. It paid off because the element shorted out the control board twice. So other than new technologies I would avoid the extended warranty (and also avoid hybrid hot water heaters).

You can always buy a list from listsource. Your county's website may have the information available for free.

I don't think you can fund your own LLCs rehabs with your 401k, but you can loan it to someone else. It must be used for a passive investment, not to operate your own business.