I am going to keep the LLC regardless because it helps me to stay more organized in terms of bookkeeping, having separate accounts for business expenses etcI am sorry if my explanation is confusing, its all clear as mudThank you to all who take time to respond

That’s okay, but you owe an obligation to him to ensure he’s educated and understands what he’s getting into.

Expanding Seller Targeting – Reaching the Right PeopleInstead of focusing on one seller type at a time, we stacked multiple high-motivation lists:✔️ Absentee Owners – Often ready to sell✔️ Pre-Foreclosures – Urgent need for fast cash sales✔️ Tired Landlords – Burnt out from rental headaches✔️ No HOA Properties – Easier for investors to flip or rentBy broadening our reach while tailoring messaging per seller type, we ensured a steady flow of highly motivated leads.2.

Partner B will get $220,000 + the single wide, while Partner A's heirs will get the apartment building and the double wide.They intend to sell one property ( the double wide mobile home ) and use the proceeds to either pay down the loan or reinvest in another rental property (possibly in another market).To defer capital gains tax, they plan to use a 1031 exchange for reinvestment.Goals & Challenges:Tax Efficiency – Structure the transfers and payments to minimize tax liabilities for Partner A’s Spouse and the Children.Guaranteed Income for Partner A’s Spouse – Ensure a fixed monthly payment of $1,100/month while transferring ownership to the Children.Long-Term Investment for the Children – Build a solid rental portfolio to support future financial growth.Operating the LLC Under New Ownership – Ensure a smooth transition, including removing Partner A’s Spouse and Partner B from the LLC structure.Proposed Plan & Questions for Advice:Instead of outright gifting the 50% interest, the LLC will be restructured so that Partner A’s Spouse retains a Preferred Equity Stake that provides them $1,100/month in priority payments but gradually transfers ownership to the Children.Payments will only be made when rental income is sufficient (i.e., when rent increases to $850/unit).Partner A’s Spouse is willing to forgo payments in bad financial times but wants assurance that they won’t face any tax consequences on unpaid amounts.If Partner A’s Spouse passes away before full ownership transfer, the Children inherit the shares at a stepped-up basis (avoiding capital gains tax).Questions:How should the LLC Operating Agreement be structured to allow withholding payments when necessary without triggering tax or legal issues?

Moving forward, consider enforcing late fees and ensuring that any extensions come with strict payment terms in writing.2️⃣ The manner of our delivery is where we show respect.

My husband was paying our bookkeeper $450/month to do our books (for a small number of properties!!)

No rule on earth will ensure you are 100% booked with no gaps.

Following this discovery, he promptly contacted his attorney to dissolve the LLC.Additional Questionable Entities:Dogwood Capital InvestmentsM&M Capital Finance LLCKey Takeaways:Conduct Thorough Research: Always verify a company's registration with state and local authorities.Scrutinize Documentation: Examine identification and corporate documents closely for inconsistencies.Verify Contact Information: Ensure that all provided phone numbers and addresses are legitimate and connected to the entity.Be Cautious with Payment: Avoid wiring funds without extensive verification of the recipient's identity and legitimacy.While the majority of direct and private lenders operate ethically, even a single fraudulent interaction can damage your reputation and finances.

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment? 

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment?