All Forum Posts by: Chris K.
Chris K. has started 3 posts and replied 1560 times.
Post: Fix & Flip and BRRR in the Scranton area
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Welcome to BP! I don't live there anymore but I used to live there. Practiced as a lawyer and also had various investments. There is a good real estate professional group in the area that I think mainly communicate via Facebook. Shoot me a DM and happy to make the connections.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Tax Professional /CPA needed
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Lot of great CPAs and Tax Professionals here on BiggerPockets.
I guess my immediate question is why you are keeping your W-2 job if you have those many real estate investments. Become a real estate professional and start applying your depreciation losses to any active income you generate. I suppose it is possible that your W-2 generates so much income that it still offsets it. But that's mostly a math problem.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: 400k bonus - tax mitigation
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
If you are getting $400k in W-2 income, unlikely you will qualify as a real estate professional unless: (1) you have equity in the company and its in an industry that allows you to qualify as real estate professional; or (2) you have a spouse that qualifies. Even then, you would need to make an investment that would generate enough depreciation to offset that income. Might be doable if you combine it with contribution to 401k, IRA, HSA, etc. STR idea might work as well although that's a matter of execution.
You could also ask the employer if they can spread out the bonus over multiple years.
If it is smaller family-owned business, see if it makes sense to offer a Defined Benefit Plan. Many people saved a lot on taxes utilizing those vehicles versus a Defined Contribution Plan like a 401(k).
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Looking for insurance broker referrals!
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Feel free to shoot me a DM on this. I have a few contacts that went above and beyond for several of my clients.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Is Wholesailing Still A Thing
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Quote from @Jay Hinrichs:
Quote from @Chris K.:
You will have to eventually need to deal with the new law that they passed regarding wholesaling.
Act 52 Imposes New Regulations on Real Estate Wholesaling in Pennsylvania - Barley Snyder
What you need to know about Act 52: Wholesaling! - Stock & Leader
It is questionable what the end result of that statute is going to be. But as written, it will change how wholesalers will need to do business.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
will see how this goes.. if the wholesalers actually follow the law and make those disclosures and the sellers are not completely devoid of real estate knowledge those who wish to wholesale are going to spend a bunch of money only to lose the deals in the 11th hour. I can see sharp investors talking to these folks and just basically talking the seller into cancelling and coming with them as they will pay more.. Some sellers may not care and those that are in protected class's IE non english or simply not educated might still get taken advantage of.. But like with all laws unless its enforced and has some teeth wholesalers wont give a rip they will just break the law and keep going until they are stopped.
I wonder what companies like Great Western are going to do. they have a big philly operation that deals in the low income areas where a lot of these deals are done. And or the WE buy houses franchises what are they going to do.. What is corporate going to make them do.. Wholesaling as we know it is on its way out take some years but these laws and disclosures are sweeping the nation no doubt.
The PA Realtors have been quite zealous in trying to protect its "turf." Unfortunately, they haven't had much success when they actually go into court trying to enforce it. For example, they lost a fairly major battle when they tried to argue that only licensed professional can manage short term rental properties.
My guess is that this statute will struggle in the courts once they try to apply it. But we won't know for sure until there is litigation in the courts.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Is Wholesailing Still A Thing
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
You will have to eventually need to deal with the new law that they passed regarding wholesaling.
Act 52 Imposes New Regulations on Real Estate Wholesaling in Pennsylvania - Barley Snyder
What you need to know about Act 52: Wholesaling! - Stock & Leader
It is questionable what the end result of that statute is going to be. But as written, it will change how wholesalers will need to do business.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Bankrupcy attorney purchase
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Do you mean purchasing something from a Bankruptcy estate? May need to specify further what you are looking for.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Seeking Advice on Asset Protection for Out-of-State Real Estate Investments
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Here are a few thoughts:
1. The terms Subsidiary LLC and Parent LLC don't mean much on their own—they just describe one LLC owning others. There are valid reasons for having complex corporate structures, but unfortunately, some lawyers and professionals push unnecessarily complex setups on clients. Pennsylvania even had cases where lawyers were disbarred for selling overly complicated trust structures to older clients who didn't need them.
2. Irrevocable trusts can be useful, but they’re a serious commitment. They shouldn’t be created without thorough estate and tax planning.
3. My main advice for avoiding liability is: (1) work with a great insurance broker to get comprehensive coverage; (2) avoid signing full recourse personal guarantees whenever possible; (3) max out your 401(k) or defined benefit plan with ERISA protection; and (4) strive to reach a point where you’re not personally involved in the business’s day-to-day operations.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: LLCs Attorney or By Yourself
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
For multi-member LLCs, definitely work with an attorney. Skipping legal help here, especially for a 50/50 LLC, is asking for trouble.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Post: Real Estate Attorney in Scranton, PA
- Attorney
- Nashville, TN
- Posts 1,613
- Votes 1,237
Since you are in Scranton, I assume you have a PM. If so they can handle it at the magistrate level. But if you prefer to work with an attorney, try Robert Kobilinski, Esq. I am attorney but have used him on many, many matters in Luzerne County and Lackawanna County. Shoot me a PM but happy to make an introduction if you wish.
Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.