All Forum Posts by: Tal Shachar

Hello BP friends!
(Note: I posted this question under a different category, which may be less related, therefore posting here as well)

We have an STR property in PA (Poconos area), which we would like to transfer to an LLC (haven't formed the LLC yet, but we have a WY holding company formed)

I would appreciate any referrals (here of via PM) for a friendly real estate attorney who can help with the following:

# Advise on the right entity structure (SM LLC, Trust, etc.)

# Form that entity (if LLC, it should be owned by our holding company)

# Transfer the deed to that LLC

Thanks in advance for your help!

Hello BP friends!

We have an STR property in PA (Poconos area), which we would like to transfer to an LLC (haven't formed the LLC yet, but we have a WY holding company formed)

I would appreciate any referrals (here of via PM) about friendly real estate attorney who can help with the following:

# Advise on the right entity structure (SM LLC, Trust, etc.)

# Form that entity (if LLC, it should be owned by our holding company)

# Transfer the deed to that LLC

Thanks in advance for your help!

Hi @John Retka,

** I'm not a CAP/Tax strategist, nor a lawyer... **

I suggest you read the Book on Advanced Tax Strategies by Amanda Han & Matt McFarland, and check chapters 7,8,9 about 1031 exchange. What you are describing sounds like one of the common mistakes people do with 1031 exchange, which can and will cost you a lot.

Good luck with your adventure!

I highly recommend Investor Friendly CPA for real-estate tax planning and CPA services.

Good luck!

Hi @Marcus Amison,

** Not a lawyer, only my point of view ** -:)

Keep in mind that if something happens with the tenant (e.g. you need to evict them), owning the property by an LLC from a foreign state may not allow you to act on them. I suggest you check that with your local/home state lawyer.

Good luck!

Hi @Marco Egurvide,

We've bought a lot of furniture from Wayfair, and we were happy with most of it. We returned what we did not like and it was hassle-free experience.

I fully agree with Shamar - pay close attention to the measures and reviews.

Good luck!

Hi @Wendy Stclair,

I second Colleen - if this bungalow was not legally converted to a duplex, check the zoning and see if you can make it a legal duplex. Otherwise, I suggest you walk away.

Dear BP friends,

My wife and I consider buying a vacation home with another family, and at some point rent it short-term.

Each family will have 50% equity, and when we put it on airbnb, I will manage it (for a % of income)

When we decide to rent it STR, the plan is to deed the property into an LLC, which will be owned partially by a holding company (my wife's and mine) and the other family.

Consider the above, I would appreciate some advice on the following options (or others, if I missed):

1. Buying the property under an LLC out of the gate (higher DP, higher mortgage rate, most likely MMLLC, but no need to deed it later)

2. Buying the property as vacation home, and at some point deed it under an LLC (lower DP, lower mortgage rate, most likely MMLLC, but need later to deed it into an LLC)

3. Other options??

Thanks in advance for your advise!

@Catherine Javier,

I am not a loan officer either... :-)

But, I asked my loan officer about this and my understanding is that the intention counts.

According to my loan officer, if you intent to have this house and a vacation home/second home, you can put 10% DP. If you decide later to put it on airbnb for some periods - that's up to you...

Hope that helps.

Hi @Catherine Javier,

Though you may not be qualified as Real Estate Professional, due to your W2 job, you may be able to meet the Material Participation rules if you manage your STR yourself.

This will allow you to write off your losses against your W2's taxes (and if you do a cost segregation, these losses on paper could be very beneficial)

Having said that, I am not a CPA and highly recommend you talk to your CPA and Tax Planner for more info.

Good luck!