All Forum Posts by: Shannon Robnett

Don't forget Treasure Valley we will be hosting our Meetup on Thursday at 6 pm so come on over and get to know us!

@Andre Crabb awesome!  I will bring the party hats!

@Erik Schofield Following! Good STR rental managers are really hard to find!

@Aileen Jimenez It's ok to have each LLC be exactly the same setup and create them like cookie cutters of each other. No need to reinvent the wheel, you are only using them to protect each asset and separate it from you personally.

Let's follow this example. You guys separate and put each piece of real estate you own in a separate LLC and now you are building the new house on the empty lot. For some reason, you forgot to pay the insurance and it lapses, and then someone gets seriously hurt on the job site. Now lawsuits are going to fly! But who can they sue? Can they sue you and your husband? Can they sue your other building LLC? The truth is the only person they can sue is the LLC that hired them which was the bare ground LLC if everything is set up and done correctly, and that is the purpose.

As far as taxes go LLC functions as a pass-through and you would get a K-1 that would show earnings on your 1040 so the IRS is still going to look at the members as those receiving any compensation from LLC#1 and LLC#2 so it should not matter. Just form the new LLC with the Secretary of State and then contact your title company and have them help you Quit claim it into the new LLC. At least that would be the legal process we would use in Idaho to transfer title and that cost would be minimal.

@Aileen Jimenez LLC are Limited Liability Companies for the purpose of Limiting your LIability. You have a commercial property that does and will not likely have the Liability of the new construction site you are about to create with the empty lot. As you know the whole reason we want these types of protections for ourselves and our assets is to keep everything at arm's length. Not just at arm's length from you but also from each other as properties.

You can use the same documents, just change the name and address, but you really should take 5 min and set up another LLC for each property so that you continue to Limit the Liability.

@Dominik Lehnert Syndication Pro is not even close to that amount Catch @Tj Lokboj and gets a demo.  It's what we use for going on 5 deals now.  Super easy to use.

@Spencer Gray It is only a matter of time before it becomes commonplace.  The reality @Michael Le just because you accepted crypto to get into the deal does not mean you need to leave it in crypto.  YOu could sell off the BTC day one or as in the current market let it ride for a bit and know that as the developer/sponsor you might need to cover some losses or you might make a really nice GP gain on the deal.  I personally love the idea and would welcome them in my developments Spencer!

@Aaron Cater first of all congrats you got a deal done and it looks to be very profitable.  @Bill B. Aaron is right, while he may be getting a 10% reduction in the cap gain, he will receive 100% of all proceeds and gain from the deal tax-free upon exit IF he holds for a full 10 years.  @Basit Siddiqi can't he quit claim it into the required entity?  It works for all kinds of other RE transactions.  We have 3 OZ deals going and we were fortunate enough to have closed in a partnership just out of necessity.  But the rules were still kind of blurry as to exactly what the rules were when we did our first one.

@Arshad Hussain I would tend to agree with @Jacob Franz as he makes 2 very good points.  But what struck me the most was your comment about the deal is making you nervous.  That's never good.  The reality RE is risky and unknown enough that if you are not feeling good about the deal then my advice is to go with your gut.  I get nervous for 1 of 2 reasons. 

#1 is this deal is taking up too much of my cash and it would not be cool if this deal went south and single-tenant buildings are just that single-tenant so single source of payment.  The other reason I get nervous is if I do not know enough about my subject project.  I can study more, do more DD to get comfortable, and fix this one but I can never fix reason #1

@Justin Thorpe Can I just say ditto?  I agree with all your points!  We have seen many of the same things Austin has over the last year happening in Boise, but we already had massive amounts of business movement to the area.  We are now showing that Amazon is the #4 employer in the are and still planning/building 2 additional facilities in the area.  These are all good things that have been accelerated by Covid/work from home. 

Any way there are a lot of factors at play and while we can always have 20/20 vision in hind sight the future is harder to predict.  That being said strong and reliable veterans of the market are always the best to have in your corner.