Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

By centralizing funds through a holding company and allocating them strategically within my portfolio, I can optimize its overall performance.Moreover, leveraging the tax advantages of this arrangement can significantly simplify matters and yield greater benefits.

% of the Gross rents allocated to maintenance in the past 3 years# of Global turnovers of portfolio under managementMarketing:What is your marketing strategy to find quality Tenants?

Typically a cost seg can provide a ton of benefits to accelerate depreciation on pieces of the purchase that wouldn't usually be allocated out under normal circumstances. 

The right allocation? 

Assets identified in this study include:Permanent Fixtures: windows, doors, bathroom fixturesStructural Components: Roof construction, drywall, wood framingBuilding systems: water heater, electrical distribution, HVAC, plumbingInterior Construction: Wood flooring, stairs, ceramic tileThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

A helpful tip is to create a budget that allocates money for both savings and guilt-free spending.

Here's how you should allocate your time (and in this order)1. 99% of time developing your business plan/idea2. 1% of time thinking about the LLCMany people get caught up on the purpose/use of an LLC and don't spend enough time thinking about how to make money. 

Stuart, I want to be difficult to allocate for privacy concerns as I have other property attached to that LLC.

So the HOA is only allocating $12k to reserves and not the 10%.