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1 February 2025 | 0 replies
Here are five dangerous provisions to watch for in an Operating Agreement:Dangerous Provisions to Watch:Authority to incur debt without investor approvalPower to make loans to other entities/projectsAbility to cross-collateralize with other propertiesPermission to use investor capital for other venturesCommingling of funds across different projectsWhy These Are Potential Ponzi Indicators:• New investor funds could be used to pay existing investors• Project-to-project lending can mask poor performance• Cross-collateralization puts your investment at risk for others' failures• Commingling enables masking of financial problems• Lack of project segregation enables fraudulent schemesProtective Measures to Look For:Strict single-purpose entity requirementsProject-specific bank accountsDebt limitations and investor approval requirementsProhibited related-party lendingClear fund segregation requirementsProfessional Best Practice:Request bank statements showing separate accounts for each project.
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21 January 2025 | 18 replies
So if your interest payment is $1000 then the servicer automatically ACH debits your account that plus the servicing fee (assuming you set up automatic payments as @Christian Ehlers suggests).
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22 January 2025 | 1 reply
Quote from @Courtney Dettlinger: Your equity is not a savings account from which you can withdraw for free.
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14 January 2025 | 21 replies
Accountant – Preferably a CPA.
17 January 2025 | 5 replies
There are several other issues (undisclosed maintenance markup fees, excessive charges to our account, significant reductions to agreed rent without communication, etc).
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21 January 2025 | 5 replies
Future land appreciation in this area might outweigh any tax benefits from buying in other areas, with a better (tax-wise) ratio.Before pursuing your plan, talk to a real estate accountant to figure out if you can, in fact, benefit from cost segregation.
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25 January 2025 | 8 replies
Realistically speaking, except in very rare cases, I think it’s all about pictures pictures picturesMost people aren’t gonna have success starting their own booking website or running targeted ads or creating some amazing Instagram account.
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15 January 2025 | 34 replies
deposited in a demand deposit account?
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14 January 2025 | 1 reply
I have a large lump sum saved in an investment account for down-payment and any additional costs.
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21 January 2025 | 31 replies
My firm integrated the services together and our clients have loved the one stop shopping for all RE accounting, tax, asset protection and entity work.