This will not apply if you're under a C-Corp taxation method.Every dollar of profit increases your equity in the LLCEvery dollar of loss decreases your equity in the LLCEvery dollar you take out decreases your equity in the LLC.Generally it works like this:You invest $30,000 in the LLC, so your equity is $30,000.In year 1, your LLC profits $5,000, so your equity in the LLC is $35,000At the end of year 1, you take out $2,000, so your equity in the LLC is $33,000.Designating the $2,000 as a return of capital or a distribution of profit makes no difference as it's all a reduction in your overall equity in the LLC.I think where you are getting confused is with equity distributions for a non pass through entity such as a C-Corp.  

Not set up for utilities" and then pulling power from another property is a big fat fine for everyone involved.

There are specific appeal deadlines that apply, so your friend should reseach these as they apply to his situation.Finally, your friend can apply for a temporary reduction in assessed value if the value of the property has declined since he reacquired it.

Originally posted by Charles Perkins:I was just reading that HUD may expand the 203K program to investors.http://themortgagereports.com/10692/fha-203k-eligibility-may-soon-expand-to-real-estate-investorsI suspect that those loans will be fat with fees to replenish the insurance fund.

He goes in, fixes the marketing, streamlines operations, and trims the fat in administration.

Pretty close to the 100:3 that was mentioned in an above post.The criteria for 25:1 are....... 1) Listed "as-is" 2) Must be vacant 3) Must have had a price reduction (no time line of days on market required here) This is basically designed to be used on starter homes in the hottest areas of the city you are investing in.Using this strategy and others as well, you are able to look at the "type" of property you want to buy, in the ares that would be best to "buy in" and having a "price reduction" means there is some motivation on the part of the seller which translates to a lower purchase price than the current list price in most cases.

Would you suggest some reduction of percentage points for going over estimated time?

Put in the time, work, and networking to over time move closer and closer to your ideal version of social work, in your case, budgeting and debt reduction, over time, and through organizations that dance around the subject.

I'm not a CPA, but I"d be willing to be you'd account for it as a reduction in proceeds from the sale.

I had a property where they didn't even supply comps, and there were hundreds available, just not the ones they needed to fund the fat pensions and other ridiculous gorwing fees they have.