All Forum Posts by: Raven Ye Mahar

 Understood! Would love to hear how you would approach this if you had this business structure set up? Would it make sense to use the Management to collect rent without charging a management fee and redistributing it to the series holding in the form of a owner's distribution and report the rental income on the series holding that owns the units? How would you approach this? 

Thanks Ryan, this was so helpful! They are disregarded entities, yes. 

So, this would mean that I have to record and report the rental income in the holding llcs that own them? If I were to take your example of the third party property manager, the management llc could "act" as a property manager where it collects the rental income directly, deduct a management fee from the rents and take that as income for the management llc, and the remainder of the rental income will be redistributed and reported back on the holding llc that owns the property?  

In this case, is it crucial to have separate bank accounts for the holding llcs - even for each series? The holding company is a series llc with multiple series created underneath, each holding a property.

Hi! 

I started out my real estate investment journey late last year and currently going to have about 3 properties under my belt. Looking for a tax professional / accountant that I could consult for my business structure needs and to help get things started and sorted to ensure I have proper accounting practices. Happy to discuss more and see if we could be a good fit! Would love to connect! 

I am based in NY but have properties in TX and TN currently.

Like most people, I created a bunch of LLCs for investing in RRE. I had done a pyramid structure where the top (parent company) owns the two bottom subsidiaries (one for management, one for holding properties). My question is two folds: 

1) Can I collect and report all of the rental income from the properties into the Management LLC even though the Holding LLC is the one holding the properties? 

2) Once the rental income is consolidated in the Management LLC, how do you transfer those income funds upstream to the top parent company? Does this trigger another income tax? Assuming the income is already reported and taxed at the Management LLC level.

Would appreciate your thoughts and guidance if anyone has been on a similar scenario!

Great takes! I have never heard of that benefit from a depreciation perspective so thank you. How about in terms of LTV? How do you decide how much LTV to take out (given you can afford to be flexible), also being mindful of such a high interest rate environment?

Hi, 

I often hear about the power of leverage in Real Estate and the benefits it could bring. But, is this mainly because most people can only afford a certain amount for the down payment? What if an investor is able to afford to buy properties with all cash - should the investor still decide to use leverage regardless? I would assume you would cash flow much more if there is no debt. What are some reasons to use leverage even if you don't need it? If decided to use debt, how should an investor think about how much LTV to take out (only the amount needed / to maximize the lendable LTV, etc)? If any experience investors would like to share their thoughts, I would love to hear them. Thanks!

Hi, 

Just bought a unit via LLC in Nashville area, specifically in Berry Hill to operate as STR. Getting a bit overwhelmed with all the required County Level and City Level business licenses, STR permits and Tax accounts (Business Tax, Franchise & Excise Tax, Sales & Use Tax) to register with the state. Are the requirements different if it is a LTR instead of STR? Does Nashville tax STR under Hotel Occupancy Privilege Tax?

If anyone has gone through this experience, would really appreciate your help to determine exactly what licenses, permits and tax accounts are needed to be in compliance.

Thanks so much! 

Hi, 

I am looking to invest Single Fam or Multi Fam Resi, potentially in the Dallas market in the next 4-6 months. If there are any investor-friendly realtors from the area, would love to connect. Feel free to shoot me a message. Thanks! 

Hi all, 

I am looking to form a LLC to invest my real estate properties under. I am based in NYC but I am looking to invest in properties elsewhere in other states. Should I be forming my LLC in my home state (NY), Delaware (LLC friendly) etc.? Would I need to register my LLC in all the states that I invest in? Any multiple state tax implications?

Lots of different information out there so if there are any legal experts here, would really appreciate your thoughts. Thank you!!

Hi Michael, 

Thank you for reaching out. It has indeed been on my radar but I didn't know much about the Atlanta market nor did I know anyone there so this is great. I would be more than happy to connect and chat!