All Forum Posts by: Rick S.

I use Formost for my flips.

I use ROE to determine my return on my SFRs. It gives me a real-time picture of what my capital is earning as the property value changes over time. 

Thank you Irina,

The QCD was filed immediately after purchase, so all Cap Gains will have occured during the partnership. I put in 70% of the purchase capital and my partner (girlfriend) put in 30%. Property was an all-cash purchase. QCD is for 50% intetest in property as Joint Tenants.

Since day 1, we have each claimed 50% of the income, expenses, and depreciation on our tax returns.

So I guess we are required to each claim 50% of Cap Gains on our tax returns.

A partner and I are selling a rental SFR. We own it 50/50 and have reported all income, expenses and depreciation on our tax returns 50/50 since we have owned it. We would like to split the sales proceeds 70/30 to give the bulk of capital gains to one partner. Can I do this? Or are we required to each take 50% of the sales proceeds?

FYI - the property was initially purchased by one of us, and then 50% was quitclaimed to the other. Prperty is in CA.

It seems that the only benefit to buying and holding performing notes in an LLC is annonimity, which is very important to me.

My scenario is, I plan on moving out of CA in the near future, but I'm not sure where to. I will start purchasing notes prior to my move. I will not use a SDIRA. 

Would it be wise to just setup a DE, WY, or NV LLC to hold my notes?

I will research Personal Property Trusts also.

If I am only buying and holding performing notes for cash flow, and using a servicing company, is there any benefit to purchasing/holding the notes in an LLC instead of my own name?

You can try to influence the appraiser by providing them with all of your research and comps when they arrive at your house to do the appraisal. You will have the opportunity to discuss the appraisal with them. With that said, I've had mixed results with appraisers using this method during flips. Sometimes it works, and sometimes it doesn't. 

 As far as your price per square foot theory,  if you put two houses side by side in the same neighborhood, in the same condition, one with 1000 square foot the other with 3000 square foot, the 1,000 square foot house will always sell at a higher price per square foot than the 3000 square foot home. The value of the land is what's in play here.

No, you do not have to get a new loan. 

 Yes, we painting and carpeting are rental expenses.

Remember, if you have any equity in your personal residence, and then you convert it to a rental, you will lose your tax free capital gains after 3 years, unless you move back into it in the future.

Rentometer.com

I keep it simple and base my cash on cash return on my initial cash outlay when I finance it. Any equity I build is just frosting on the cake.  Years down the road, once you have mostly equity, you can sell and grab it, or refi and keep the machine cranking.