All Forum Posts by: Jonathan B.

The more i read -i find that its easier way for a foreign national to invest in US property is by giving out a loans back by the property (Interest income)

How should one avoid being liable for "Foreign investor tax withholding" for their interest income?

I read that Registering investors under an LLC -> which in turn this LLC gives out a loan to my main holding might be a good way to circumvent that?

was hoping someone break this down so that i makes sense?

thanks

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Originally posted by @Eamonn McElroy:

@Jonathan B.

Why have you decided on a trust?

First you need to determine the terms of the deal and who is doing what.

I didn't decide yet, the terms are- interest on his investment and equity split upon sale. Me managing the property. Trying to figure out the most cost effective solution to this.

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Originally posted by @Carl Fischer:

@Jonathan B.

Don't be pennywise and pound foolish. Get another Partnership, LLC, or trust. Don't mix it in with the other RE you own. I think it is wise to use separate entities for each asset that carries any liability.

A trust may be good way to go about it

How would you structure that?

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Hi,
friend of mine wants to buy a property together,

Split is a combination of debt & equity,

I have a family partnership which i would like to hold the property under and avoid the extra annual fees related to another Separate LLC for the holding it.

is there an alternative way to provide a the security for him?

i was thinking of lien position & Partnership agreement that describes the split and terms.

is that an efficient way to go about it?

thanks

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Originally posted by @Ashish Acharya:

Originally posted by @Jonathan B.:

I am having a hard time understanding how one should pay himself within a family partnership (LLLP).

i have limited understanding in taxation*

My accountant advised we have a salary paid by the entity, essentially making us employees.

i read that there are some caveats to that,

is there an alternative/conventional way to set-up recurring compensation?

appreciate the insight.

Thanks

Partner cannot be an employee of your own partnership. I am not sure what your accountant is trying to get at.

The way the partners get paid is via Guaranteed payments.

Based on the what your partnership and you do for partnership, GP might not be or be subject to self employment taxes.

I guess that was he intended

Thanks

0 Votes

I am having a hard time understanding how one should pay himself within a family partnership (LLLP).

i have limited understanding in taxation*

My accountant advised we have a salary paid by the entity, essentially making us employees.

i read that there are some caveats to that,

is there an alternative/conventional way to set-up recurring compensation?

appreciate the insight.

Thanks

0 Votes

I am having a hard time understanding how one should pay himself within a family partnership (LLLP).

i have limited understanding in taxation*

My accountant advised we have a salary paid by the entity, essentially making us employees.

i read that there are some caveats to that,

is there an alternative/conventional way to set-up recurring compensation?

appreciate the insight.

Thanks

0 Votes

Originally posted by @Stephanie P.:

Originally posted by @Jonathan B.:

I am self employed individual, looking for recommendations for a portfolio lender out of Brevard county FL

Have also looked into Limaone and lending one but have mixed reviews as far as the experience with them so holding back for now,

Was mostly self funded until now,

I am looking into having a cash out refi on a rental ,

Any recommendations or opinions on the above? Thanks

You're right to lean toward portfolio financing, but you don't have to have one that's in Brevard. There are a few that are nationwide.

Being self employed, you're going to want to take the maximum tax deductions and unfortunately, that impacts your ability to borrow.

Stephanie

That was my thought too..

However I think Diana is suggesting I should try and exhaust my potential conventional financing and then drill down to portfolio..

You mentioned some nationwide portfolio lenders , anyone in particular you had positive experience with?

Thanks

1 Vote

Originally posted by @Diana Muresan:

@Jonathan B. non-agency is subprime, all mortgage companies will have few conventional lenders and few subprime lenders in the house, it’s just that subprime is manual underwriting and more work with same pay therefore bankers shy away from those products

Thanks again Diana

0 Votes

All Forum Posts by: Jonathan B.

Jonathan B. has started 71 posts and replied 166 times.

Post: Ask me (a CPA) anything about taxes relating to real estate

Post: Loan from a foreign national - Tax withholding?

Post: Buying a property with a friend - Structure (?)

Post: Buying a property with a friend - Structure (?)

Post: Buying a property with a friend - Structure (?)

Post: Partnership structure - How to pay yourself?

Post: How to pay yourself - Partnership Structure

Post: Partnership structure - How to pay yourself?

Post: Recommendation for Portfolio Lender ?

Post: Recommendation for Portfolio Lender ?