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All Forum Posts by: Scott Reynolds

Scott Reynolds has started 2 posts and replied 2 times.

Hey BP, I am deciding on business structures. I own three properties in NC (where I live and have a W2 job), which I manage with an NC LLC I just started. I also own a SFH and farmland in PA. I'm soon to be leasing the PA farmland to a solar company on a long-term lease (more yearly than my W2 job, and 3% escalator, compounding).

With such an advantageous situation in PA, I want to be able to maximize my potential. Most of the PA income I plan on reinvesting into NC properties, and as such want a tax efficient structure. Plan is to reinvest most of the profits for 2-5 years before I quit my W2, go into real estate full-time, and live off the profits while continuing to invest. I've also considered forming an S-Corp in PA, as I want to have a self-directed retirement account someday, and it would be easy to max out with the revenue from the PA solar farm.

If I had a self-directed account, I would likely do some investing in securities, but most in real estate (likely in NC). I'm also open to holding off on the self-directed account and/S-Corp if it makes sense to do something else, or do it later.

If you were in my situation, how would you handle the business structures? Form a separate PA business? Use a new NC business to do business in PA? LLC? S-Corp? etc.

Here are some other bullet points if you need more info:

- The PA properties are owned free and clear, in my name

- The PA SFH is likely to be a long term rental (renovations currently) and will net around $1,500-$1,700/month if I don't borrow against it

- The NC properties have mortgages, and are held in my name

- I have a lawyer negotiating the solar deal, and have not signed anything yet, but is nearly a done deal

- Unsure if solar proceeds have to go directly to me, or can go to a business I own

- I'm unmarried and investing by myself/no partners

- W2 is between $70-$85k/year

- I don't yet have an accountant, but am going to be hiring one and discussing strategy with them

Thanks so much for your opinions!

Hey BP, so I'm in the process of inheriting a house from my step-mother's estate. It is out of state from me (PA), and has been cared for by my step-brother (executor). It was my father's house originally, and my step-mom was signed onto the deed when they were married. Apparently last spring, there was a freeze and some of the pipes burst causing significant water damage. My brother told me about this a month or so ago.

I just had the deed transferred to my name. I don't know why I never thought to ask about this, or ask him to do this, but is it too late to file an insurance claim? I am in the process of transferring the insurance to my name, but have not done it yet. My understanding is that the estate is currently paying for the insurance.

It sounds like a significant amount of damage, and I do not think I will be able to pay for the repairs out of pocket, hence asking about the insurance.

I have no idea why we didn't think of this, but I'm assuming it would be preferrable to have the estate make the insurance claim, as opposed to myself (so it wouldn't be on my personal insurance records), if this is even possible?

If that wouldn't work, would I even be able to make a claim considering that the damage occurred a while ago, and the insurance had just been transferred to me?

Thanks for any information