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9 May 2024 | 1 reply
You'd have to balance time and cash contributions accordingly. 2) Delete 2-3 partners.
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10 May 2024 | 6 replies
@J Shoe I will start by saying consult with a personal attorney and CPA (and have them work together.)Typically people buy in an LLC just to keep their name off the record and for asset protection and operation agreements.As a sole investor a lot of people will buy in their personal name so they can more easily obtain quality financing, and then move the asset into the LLC.A lot of people of California use trusts (DSTs) to hold the asset, so they are not contributing to the problem of over taxation in CA, as CA has a franchise filing fee of $800 every year for each LLC.Just some things to think about, but find the professionals that can tailor a system for you personally.Cheers
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10 May 2024 | 12 replies
Make sure you put discount clauses and subordination verbiage in your offer.Use the Installment down payment clause.A Front Porch clause can be used to completely eliminate the down payment requirement.Write in your offer that seller pays all transfer, contributes X-$'s to you at settlement and that you receive all positive escrows if there is a mortgage to be paid off, and the seller agrees to leave stuff in the house or garage - all furniture, the old car in the garage, tools and garden stuff.
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9 May 2024 | 1 reply
From the single-member LLC, i pay myself 100k last year to max out on the solo 401k contribution, while still having a W-2 as an engineer as my main job.my main job pays me 170k/year (Google)my single-member LLC rental pays me 100k/year (as S-corp structure)my question is regards to the payroll tax, i know I already max-ed out on the payroll tax on the employee side, any additional payroll side as employee will be refunded in my tax return, how about the employer side.
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10 May 2024 | 22 replies
Scenario 2 If I use plan to purchase property, I have access to quick cash for closing but then I can refinance and have passive income to make contributions w (or not).
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10 May 2024 | 7 replies
Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.
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6 May 2024 | 5 replies
Anyone who contributes money here does exactly that - makes a charitable contribution and gets no money in return.
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10 May 2024 | 19 replies
Everyone is different in the level of risk they are willing to take and the life stage you're in can certainly contribute to that.
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9 May 2024 | 9 replies
Honestly we would be ok taking a small loss and coming out of pocket for the difference and just consider it like a monthly retirement account contribution.
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10 May 2024 | 116 replies
Leverage has no material immediate impact on net worth ceteris paribus, because Bob Safe has one $500,000 home contributing $500,000 to his net worth.