Anyhow, everday brings to light new info, thankfully I have someone teaching me this all who knows the game well.

They had an apartment building (I think, not quite sure) they were converting to individually owned units.

Since all you have is a contract right and you sell that (via a simultaneous COE on the same day) and you have held that contract right for longer than a year, it should still be treated as a capital gain to the LLC.The capital gain recognized by the LLC will flow through to members of the LLC via a K-1 form, which will get reported on your individual tax return in the same character.Caveat....please check with all the details of this transaction and make sure you can show you had and investment intent from the beginning to support your case and that you indeed have a binding contract that is assignable (most are if you have a good attorney).As for keeping the cash in the LLC, it doesn't matter.

You should create a post in our Local Real Estate Groups Forum area in an effort to meet other VT investors on the site.What is the mentor that you are working with teaching you?

Be tough to do 30 rehabs at once.That sort of sounds like neighborhood revitalization, unless there are just individual properties spread out in otherwise nice neighborhoods.

It may surprise you to learn that here, in Honolulu, the zoning for rentals is quite regulated (note- I did not say enforced) While Waikiki is largely "resort" zoning, which allows daily rentals, there ARE individual buildings that restrict this, requiring 30 or even 90 days minimum occupancy.

For example, what happens if you and your partner decide to go separate ways or decided to do a couple of deals individually?

My vision is to build a second single family home (with garage) on the back part of the lot...and then sell them individually retail via a realtor.

:D I'm an account manager for an Internet based marketing firm - New Homes Section, we provide homebuyers (Realtors & individuals) with information on home builders and their incentives, amongst many other things.I'm very happy to be a part of this forum and I'll try to be as active as possible as I learn to navigate around the site!

I am in the game.My hope is to develop strong professional relationships with likeminded individuals.