All Forum Posts by: Rick S.

Answers to your questions:

1 - Worse case is that the city decides it is not permitable and demands it gets returned to its original garage state. Best case is a few dollars in fees results in a permitted ADU.

2 - Many counties require an addition to be "attached" to the main dwelling in order to increase the square footage. Check with your city or county assessors office.

3 - Only the City of LA can answer that question.

It is my understanding that if the property is owned by an LLC, then the profit is reduced by an additional 20% before it passes thru to the members personal income. in effect, only 80% of your income is taxable... unless I am missing something.

@Brian Schmelzlen sent PM.

@Katie L. I am currently invested. Personal taxes for 2017 + new LLC for 2018.

@John Thedford, I always thought I would like to get into hard money lending. My concerns are, 1) I may not have enogh capital (I have $500,000 available), and 2) how difficult it would be to keep all my capital active all the time.

Does anyone have any recomendations for a RE savvy tax advisor? I am looking for some year-end tax advice, 2018 planning, and probably help with my taxes this year. Thank you.

Thank you everyone for the replies. It sounds like the people who are mostly making 12%+ returns on notes are those who are actually buying NPNs and doing the workouts, and maybe not their investors. I have communicated with a few note investors who tell me I can get 10-12% in their fund or as a JV, and I am still exploring those. If any of note investors out there have sophisticated investor opportunities with a 12-15% return, please feel free to reach out to me.

I am also exploring MFH syndications, as well as just buying my own value-add MFH and keeping busy for the next couple years until I go passive.

I would be intetested also. Bump.

What is a realistic return I could expect on JVs in the note space? I am looking for a 12-15% return on $100-400k. 

Sent PM and colleage request.

Martin, how many hours per week do you spend working on your note business?