All Forum Posts by: Matt Said

@Shahid Elahi Yes! I did. We just opened our doors last week. So it’s too early to tell how it will do but so far it’s doing ok. Not great but ok. I recommend getting something smaller and marketing to one to to couples or a small family. The rentals under 200/night do a lot better in this area. I think the market is over saturated with 3-4 bedroom places IMO.  You have to find a way to stand apart for sure. We also bought in the smokies and That one is killing it!

First, what most people refer to as passive in real estate is not quite passive. Nonetheless, a better question is - do you want some breathing room or some wealth? $10,000 of income is very nice, but it won't make anyone rich. Nor will $20,000. Bor will $30,000. It will make you fairly financially secure and independent, but not rich. $1M in the bank, on the other hand, makes you rich...

But, more importantly, if you got that $1M the right way, chances are pretty good that it came with $10,000 of monthly cash flow. So no need to choose.

Ask me how I know about this :)

I could be wrong but i think Brandon Turner owns his primary on Maui.. 

It's a triplex, he just mentioned it on a recent podcast. 

@Matt Said, Not an uncommon problem. Some states require a domestic LLC. Some will allow you to domesticate a foreign LLC. So that will be an issue and/opportunity for you to adjust within the 1031.

It is really the tax return that reports the activity of the property that is critical. A disregarded LLC is one that does not file a tax return. All of the activity of the property is reported on your personal tax return. That makes you the tax payer for the property regardless of what name is on deed since the only way we communicated with the IRS is with tax filings. So in this event you can sell as the LLC and buy as yourself or sell as the WI LLC and buy as another disregarded LLC in the other state.

If the other member of the LLC is your spouse and you file a joint tax return then that is still technically one member of the LLC - your joint tax return. So from the 1031 perspective your WI LLC could still be disregarded if all of the activity of the property was reported on your joint tax return.

If the other member is not your spouse then it has to be a regarded entity. You can easily check to verify - if the LLC files a tax return and gives membership statements to the members then it is regarded and we have to tread more carefully.

Hi @Matt Said

Yes, as long as both entities are single member limited liability companies, both are disregarded entities, and both are owned by the same single member (you), it would qualify for 1031 Exchange treatment. The key is that they are both disregarded entities owned by the same person or entity. This way both entities are disregarded for tax purposes and treated as if the properties were actually sold/purchased by the same taxpayer.  

Geez, this thread went off the rails...

For this book, he's talking about buying distressed RE notes.