Just be sure to research your target markets carefully to maximize returns.

and you split the return?

For example, two of my goals are to achieve a certain percentage for my IRR (internal rate of return), and a certain % for my cash on cash return. 

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

I buy to rehab and turn into rentals so Pinson, Pelham, Bessemer are a great fit for the areas and returns I'm looking for.

If you’re able to dive deep or work with someone who has boots-on-the-ground experience, the returns can be very rewarding.Good luck with your journey, and feel free to reach out if you’d like more insights or resources on Detroit!

There are two types of return from a rental propertyCash Flow & Appreciation.I normally also aim for a minimum of 8% return between Cash-Flow and Appreciation.Appreication, nationally, is around 2% to 3% annually.Therefore, your goal is to get the cash-flow to be about 5% to 6%.The issue is interest rates being very high, you would therefore, need to buy at a pricepoint where the numbers still make sense.You can always put down more of a downpayment to cash flow, but that will impact your cash on cash return calculations.Best of luck!

For 2024, the annual gift tax exclusion is $18,000 per recipient (rising to $19,000 in 2025), and amounts above this require filing a gift tax return (Form 709).

When they pick up, explain that you meant for your LLC to be a disregarded entity and you HAVE NOT filed any tax returns yet.

Our business model is built around working with investors to find them great returns and I would enjoy a conversation around what you are trying to do.