All Forum Posts by: Taylor Nielsen

Thank you Jonathan for your advice! If anything it is probably not a huge deal right now anyways. There is still much to be defined with the new tax code. I appreciate your input on this. This is my first deal and hoping it goes through without too many hiccups! 

Hey Jonathan, thank you for your reply! I would love to jump into their LLC but they only want the partners of the oral surgery clinic to be partners in the LLC. Essentially I am just a cash investor on my fathers portion and that is why him and I are creating an LLC to do the deal. I would like to put much more money into the deal due to the projected return approaching 30% cash-on-cash but I am unable to (my max is %16.66 of the deal)

My question about limited partner was not referring to a non limited company rather a passive investor who does not take an active role in the development other than putting money in (a limited partner). The second to latest episode of BP talks about how the new tax code will benefit active partners more than limited partners and they talked about structuring future deals to make all partners "active". I did not really understand that part and what are ways of structuring the deal to make my father and his partners appear more "active". It is a true triple net lease so management would be at a minimum. Maybe share management responsibilities albeit very few? Any advice on that? And yes, we will be seeking legal council for this in the coming months as we structure it. I am just seeing if anyone out there has done something relatively close to this. Thank you all for the help!

Hello All,

This is my first post on BP. I listen to the podcast and love it. I am getting into my first deal this coming summer. My father is a partner in a large oral surgery practice. They are looking at opening a 4th location (6,000-8,000sqft). My father and 2 of his partners are going to develop the building (this has been the established pattern in previous offices that the partners are the investors and they hire a 3rd party to develop the site and building). My father and the 2 other partners will be forming an entity to negotiate a lease with their oral surgery practice entity. My father wants to split his %33.33 share of the deal with me as he does not want to put too much of his liquid cash into the deal and limit his exposure. I am thinking that the best way to do this is to form and LLC (or other entity) with my father and then use that entity to sign for the entity with the other 2 partners in the deal. This would give both my father and I a %16.66 share of the deal and limit his exposure. All cash investments and leverage would reflect % share of the deal.

My question for you wonderful BP contributors is this. Is this a good way to structure the deal? what advise would you give me on on doing this deal? Also, there was a recent podcast on BP talking about new tax code implications on future deals and how structures should be set up to make all partners "non-limited" but I did not fully grasp the reasons why. Can any of you explain why in layman terms? Any and all advise is very welcome. Thank you in advance. I can provide more information as requested.