All Forum Posts by: Weikang Chen

@Paul Allen, thank you for the information.   Steven Hamilton's link is very helpful too.  

Weikang

Hi,

I just create a one member LLC and trying to add my properties to this new LLC. Since it's a single member LLC it's default to tax as "Disregarded Entity" like a Sole Proprietorship entity(pass-throught income?). It looks like it's not even required to obtain an EIN in some states. But I will probably going to get one anyway.

If I keep it as Disregarded Entity..  

Do I need to file LLC tax seperately?

Can I still able to deduct expenses like S-Corp?

What other tax benefits vs other entity type like S-Corp?

Thanks

Weikang

Thanks guys.. 

Follow up question. Which is a better approach? each one of us have our own LLC or have one LLC with equal % specified?

A couple of my friends are starting out to invest in RE. We couldn't decide whether to go in with our individual names or form a partner LLC. Can someone give us some guidelines which is a better way to go? For minimum we understand the legality and financial protection of having a LLC. But at the same time, doing taxes with LLC maybe a burden. I guess we trying to understand the complication of deal with taxes and how much it would cost versus doing this with our own name. Please advise..

@Brain 

Appreciate your response.  When you say I may be able to d joint-venture with "personal cash", can this cash come from a refinance of another property of mine?  I certainly don't want to do a non-recourse loan and expose to UDFI.  

What I really want to do is use the fund in my Roth IRA for a down payment then mortgage the rest with my own name. The majority will be under my name. So it's like a join venture of 40/60. I read somewhere this can be done. Now with that setup, are there any complications that I should watch out for? How are the fund going to be distributed on capital gain, and expenses? If i need to a renovation, it is going to be a 40/60 split on the cost?

Weikang

Newbie here.  My tenant is not on a lease anymore.  They're 6 months without a lease now.    Is it mandatory to get a new lease to raise their rent?

@Desiree, thanks for your reply.  I've heard the fee for this type of account is pretty hefty.  I've been looking at Equity Trust and they have a flat fee structure based on the amount in the account.  So there's no other admin and transaction fees.  I think my bucket falls in the $400s annually with them.. So how's that compares to Pensco?

Anyone have any experience using a self-directed IRA account to invest real estate?Please share your experience and tips. Also which custodian do recommend to open the account with?

Hi everyone,

Couple of years ago, I was under short sale contract to buy my neighbor's house.  I walked away from that deal because the inspection found a leaking underground oil tank.  Now this house is in foreclosure and put in auction by the bank to sell it as-is.  I crunched the numbers again and it seems like a good deal for rehab and rental ONLY if someone remove the tank and clean up the contamination.   

Since I know for fact there's a leaking oil tank, should I report this to the town and have them to force the bank to clean that mess up before put it on sale?  Is that the right thing to do?  After all, I don't want any of the leakage spill into my side too.   Anyone have any other suggestions?  I really want to put my bid in this house again.