All Forum Posts by: Cody Z.

You don’t pierce if you transfer money to your personal account. Writing a check or transfering  it online are just a method of payments, one is not worse than other.

I am guessing this is not an S Corp. 

Transferring money is distribution. You have to book it correctly in the books. If you don't, that will look like the LLC is funding personal expenses and thus piercing a veil. But if booked correctly, you have no problems.

No you don’t have to give your mom to he same amount. That is only applicable to S Corp. you distribute money to you and decrease your capital account and leave moms alone. 

@Carl Fischer is right if the LLC was an S-Corp, but I hope you are not running a rental activities via Ann's-Corp.

As a bit of history, my friend and I created an LLC to purchase rental properties in 2017, but didn't buy our first property until March 2018. We're having everything deposited to a business checking account in our LLC's name, and we pay the mortgage for the remaining 80% automatically from that account. Our intent was to have this LLC own everything we purchased, but that turned out to be harder than anticipated, so our property is actually in my and my partner's name.

This is the first year we'll owe taxes and looking into the process, it is mind boggling. From what I've collected, we'll need to file a 1065, with a 4562, an 8825, and schedule Ks attached, then file our personal returns using the amount noted in the Schedule Ks. There's also some lingo about Self Employment Tax and quarterly payments.

Could anyone here supply a rundown of the actual forms needed and why? This seems like a very intensive way to document a business that's only anticipated to net 12k a year per property, but I suppose the burden would seem less dire as the years go by and properties are added.

Hey all,

I've been working with a realtor in Austin, TX looking at buying rental property in the area. Based on our research, it's going to be nearly impossible to cash flow in the area unless I bump up my down payment to ~35-40%. 

Does it make sense to pay the 40% down payment and get a positive cash flow or stick to the 20% down and possibly get two separate properties but both with negative cash flow? Austin's also a really hot market and is expected to continue to appreciate considerably over the next 10 years.

The toughest part is getting in there, getting material in there and working. it is a labor intensive job, which would be your main cost. 1st thing is to clear all the debris that the inspector said was in there then you would have to temporary support the floor joists as you replace the beams that are cracked/ broken. others you can make a 2'x2'x1' deep footing right next to the block, once that hardens pot a small post or cement in a new block to support the beam, then remove the loose blocks. 30K seems like a lot, but it could run you between 10-20K, the hardest part would be finding the contractor that would want to do the work, i have worked in bad, tight spots and know how it could be, i wouldn't even take on a job like that.

@Cody Z. I did most of it myself alongside a good contractor friend. We were able to get it done in about 2 weeks of after work and two weekends.

@Cody Z. Im not sure of your exact situation, but it sounds similar to mine. I bought my primary residence in riugh shape a year ago. Same deal. Cracked/sinking back corner of foundation and rotted llally columns that caused cracked joist and wavy floors.

The seller agreed to let me repair this before my fha appraisal. I have a close friend who took out the permit to do the work. We jacked up the center beam slightly, and put in temps so we could remove the rotted columns. Then we dug into the foundation to reveal the footers. Called for an inspection of tue footers (that sit under the foundation and support the load beam) then we added new collumns and set the beam back down.

As for the foundation. I was able to remove/cut the bolts that hold the sill to the foundation. I then jacked up the corner of the house to level. And added shimming to the sill before we set it back down on the foundation where it was now level. We then added drainage and graded the yard so that water could not get under the foundation anymore.

I would say that depending on what team you put together its not 30k. However i dont know your exact situation. Do as much research regarding your specific needs. Many contractors will probably tell you that its worse than it is because its not hard to have someone throw money at them when you tell them their house is going to break in half. Do your homework and weed out the shotty contractors. Best of luck!

Oh geez that is not that huge of an expense if you get the right helpers and not afraid to get your hands dirty . I have a house with some issues similar to yours . Depends how fancy and good you want to get it for a finished product . My duplex was built in 76 ... 1876 so it’s a bit older than yours !