All Forum Posts by: Stanley Bronstein

@Victor So If your parent is going to want to eventually qualify for assistance when she goes into a senior home, you definitely should talk with an elder law attorney who is licensed in your state.

That is NOT optional. It is highly recommended. The money you spend up front will more than pay for itself considering the amount of problems you will avoid in the future.

Also, the $15,000 per year limit applies, BUT you have the lifetime exclusion and if you make gifts along the way that are over the $15,000, you can have a CPA file a gift tax return for you and designate some of your lifetime exclusion limit toward the excess amount of the gifts she made.

Plain and simple, you need to do 2 things:

1) Talk to and probably hire an elder law attorney

2) Talk to and probably hire a CPA who is familiar with filing gift tax returns. If you need a referral, ask the elder law attorney. They will probably have one or more CPAs they've worked with in the past who know what they are doing.

I know how to paint my house and I know how to prepare and file Form 1120-H tax returns.

Should I paint my own house? - Probably not, as my time is better spent elsewhere, AND the painter will undoubtedly do a MUCH better job.

Should my painter prepare and file Form 1120-H tax returns? - Probably not.

$300 per year is not unreasonable. There is much more involved than just 10 minutes to prepare the return.

Also, if the CPA is able to do it quicker, that's undoubtedly a result of their experience and expertise.

I'm president of my HOA and I don't prepare and file our annual returns.

I didn't look through it in detail, but perhaps start here.

https://www.hud.gov/program_offices/housing/sfh/ns...

In my experience, some deals need to die. In my opinion, it's not always a matter of attorneys being deal killers and deal makers.

I'm reminded of a deal I worked on more than 10 years ago where my client let $750,000 earnest money go hard on a $10,000,000 deal that had all kinds of environmental issues. I pleaded with him many times to kill the deal and NOT let his earnest money go hard. The broker told him to keep going and he did (possibly because the broker wouldn't get paid unless the deal went through, whereas I was getting paid my legal fees either way).

I had him sign off in my files that he was going forward, against my advice.

He wound up having to kill the deal later over those very same environmental issues that I had warned him about, as no commercial lender wanted to fund his deal (because of those environmental issues). He eventually got some of his earnest money back, but he wound losing almost half a million.

Many years later he told me he wished he would have taken my advice and not the broker's.

@Chris Reel is on the money. One other thing to add about his Option #2 (as @Trenton Farris also says) is that the holding LLC can be registered in a state that doesn't require you to list the names of the shareholders in the initial filings (such as Nevada and Wyoming).

Does that give you 100% protection and make you bulletproof? No it doesn't. But, it does put one more barrier in the way.

We need more information in order to formulate an opinion.

Who is the landlord on the Cell Phone Tower agreement? Is it an individual, or is it a partnership, or an LLC or a Corp? If it's an entity, does the gentleman have authorization to sell, or does he need approval of his partners or shareholders?

Also, I highly suspect that the cell phone industry will be quite different 80 years from now than it is today.

A lot of whether or not you should consider buying the deal depends on the price. Is the price discounted enough to take the future risks into account?

What does the property management agreement say? That's the first thing I would want to know. It's possible the PM is in the wrong, and it's possible the PM is right on the money.

I know my standard property management agreements only allow cancellation at the end of a monthly period (with a minimum of 30 days advance written notice).

@Guy Gimenez is correct. I recommend you use BP to ask other successful wholesalers in your area for attorney referrals.

I recommend you consult a knowledgeable lawyer in the state where the property is located.

@Nate Fanara If you have an AZ LLC and you plan on owning Ohio income producing property, then you would need to also register it in Ohio. That's just double the work (and expense) and it defeats the purpose.

@Pamela Sandberg is correct. Use an Ohio LLC.

Delaware LLCs are typically only needed for big deals ($10 million on up) where the big lenders require you to use a Delaware LLC.