All Forum Posts by: Corey Stubbs

The question I would have you pose to yourself is, "Will I over leverage myself if I invest into something that WILL require more of my money?" If you can afford paying the bills, rehab costs for a BRRRR, and all the carrying costs associated with it then go for it. If the numbers say go, go!

I highly suggest playing this game from the Rich Dad franchise, "Cashflow".  It shows you that the game can be played with or without debt, but if you over leverage you're out.  You'll need to create an account and then the game is free to play.  I've been using this simple tool to teach my kids and wife about this topic and more.  I will preface that the game is based on the principles he teaches in his books, so paying off debt and such will abide by his rules. Enjoy!

https://www.richdad.com/products/cashflow-classic

Ultimately, what do the numbers say? I would personally go the route of get as many properties as possible, but if the numbers don't make sense and you over leverage or can't afford to do your first BRRRR, then you're hosed.

What I like to do I like to do in these situations where I have a couple really good options and I am under no rush to make a decision, I build a spreadsheet that shows the options all out there to find what makes sense the most to me in the numbers.  

Not knowing all the little details I will answer this to the best of my ability.

Can you add your brother onto the title and not the loan?  Yes.

Will this cause a tax issue?  No.  You may still need to pay a transfer tax or processing fee or something when going through the title company but after that you're good. 

Is this considered selling the home?  No.  This is not considering a gain in income on your brother's part or a loss on your part. So no, it is not considered selling the home.  You will incur taxes if you are renting the property to a tenant and you both receive an income from it.  Just like normal.

Hope this helped!  Have an awesome day!

Good job!  Isn't it hilarious the ways life happens and you stumble on a good thing?  Liked: "Came across while hustling delivering food for more investment cash."

Keep hustling, it apparently works! :)

Hi Jagger,

I've done three LLC's thus far but I never formed a partnership with someone outside of the USA so take my information lightly. I had all my LLC's in Montana but I would highly suggest looking for a state that would benefit you being from another country the most.

Here's a link to some LLC friendly states pertaining to real estate investment.  I'm not saying do an LLC in any of these states necessarily, I'm saying look at what I mean on how each state can be different.  

https://www.legalzoom.com/articles/starting-up-which-state-to-file-your-llc-in

Good luck!

Hi Robert, I have had three LLC's now, all of which I would have had a different outcome in answering this question because of how we reported each LLC's earnings. Also, with all the LLC's I did the same thing you are doing and asked questions among my peers, but I would take the fine tuned questions back to my professional accountants and attorneys to further discuss and they would set me right.

Ultimately, if I understand your case enough (which I'm sure I don't), you personally will not have tax implications if you DONATE the property to the LLC. That means you transferred the property into the LLC's name and you have some document showing the freeing up and complete disavowing of the property to the LLC. That is not to say that you might not still owe property taxes or some sort of in-state transfer tax, depending on where the property is, you just won't owe income taxes. That answer could be different if you sell the property to the LLC, it could not, cause I don't know your situation. But after it belongs to the LLC the tax implications of that property's earnings from rent or sale of that property are transferred to the members of that LLC since an LLC is a pass-thru entity and can effect general and limited partners differently. I was a general partner and my wife a limited in one of my LLC's to be sure to have our tax implications be as little as possible.

Read the following articles, they should help to understand further. THEN get some legal advice from someone that is able to truly speak to this like an accountant that will probably deal with your books at the end of the year or an attorney that deals in LLC formations and the fine details there in. Please don't take mine or someone elses word on this until you explain your entire story to someone who can truly speak to this.

I'm sorry this is as clear as mud, but you need to bring this question to a licensed person that can be properly familiarized with your situation-that way if this gets goofed up for some reason it's not on your head.

Tax consequences for Transferring to an LLC:
https://legalbeagle.com/13312030-tax-consequences-for-transferring-property-to-a-limited-liability-company.html

Contributions of Property to an LLC:
https://www.thetaxadviser.com/issues/2009/oct/contributionsofpropertytoanllc.html#:~:text=General%20Nonrecognition%20Rule,the%20member%20or%20the%20LLC.

Hi Tommy, I suggest taking just ten minutes a day to look at one single property on any realty site that looks could be promising and practice running numbers through one of the calculators under the "Tools" tab.  Taking these ten minutes to practice a day will help you to recognize deals in your area and what potential profits are to be had.  It's fun, good practice, and instills a habit in you that even as you're driving to work you start sizing up houses you pass and running through numbers naturally.  Hope this helped! 

Hi Ola', and welcome to the best decision you'll make for yourself.  EVER.  Investing in learning more to earn more.  You asked a pretty general question so I'm gonna offer some things that can help, generally.  

1.) Find your "WHY".  When you know your "WHY" you will have the drive to push you past the plateaus of investing when things get dull or hard.

2.) Learn.  Listen to podcasts and webinars from this site, read some books, and read some forums.  Some of my favorite books are "Rich Dad, Poor Dad", the "ABC's of Real Estate Investment", "Cashflow Quadrant", "The Book On Flipping Houses", and "The Book On Rental Property Investing"

3.) After educating yourself some, decide what kind of investing you'd like to start with.  Real estate offers SEVERAL options to pursue and you should know where you'd like to focus your efforts first so as not to overwhelm yourself.

4.) Find a mentor in that focus area.  You'll want to find someone who has done this a time or two already to show you some pitfalls to avoid and to get maximum effort to produce maximum results.

5.) Build your network.  The more people that know that you are wanting to invest in real estate, the better.  You'll have leads coming to you from everywhere if you just start talking about your interests among different people groups and among professionals that can help. 

6.) Do it.  Once you've learned enough, commit to acting on what you know.  Most people get scared with the first deal or even first couple, but education and a good network of people behind you will help you get over those fears.  Don't be afraid to fail, be afraid of not acting on what you know. 

Hope this helps, and if you have specific questions feel free to shoot a message!  Have a great day!

I have been in construction and property management for almost my whole life and now I'm investing in properties for myself. We've accomplished several flips and now we are tackling our first BRRRR project to start our B&H's that we plan to continue growing in the Great Falls, MT area. I'm no stranger to real estate investing or the problems that come from having tenants, but I'm seeing the tenant problems from the position of a PROPERTY MANANGER. What are some things you have learned being a LANDLORD in this area? What are the challenges you faced and how did you overcome them? I am currently a recruiter for the Montana Air National Guard and as such I love telling my story and hearing the stories of others as I continue building my network. Thanks for checking in and I hope you have a great day!

Hi George, I realize this is an old post but I thought it was worth still reaching out. I'm an Air National Guard recruiter that has been been investing in real estate in the Great Falls area for about three years now and I have been using an Adam Monroe as my real estate agent for all my deals. He is a VERY out of the box thinker that loves to problem solve how I can make a profit on something almost as much as I do, if not more! I swear the guy seriously tosses and turns at night thinking how to get me a property that cash-flows. He's actually the reason I'm working on my most recent BRRRR as he came to me and showed me a listing he was about to put up, I put in offer on it within thirty minutes of my walking through the home. He is very good about recognizing cash-flowing properties and as you now know having been in Great Falls yourself by now, there is lots of opportunity to have a rental investing presence in Great Falls, MT.

If you'd like Adam's information feel free to directly message me.

My family's focus has been house hacking and flips and we are now moving into BRRRR and rentals. We plan on staying in Great Falls for about another year before moving ourselves to permanently stay in Hawaii. If you have need of help or suggestions on anything my background is working for the 219th RED HORSE squadron as a Structures troop for 10 years, in civilian contracting for carpentry and concrete refinishing, as well as property management just to name a few things. I know or have worked alongside a lot of people in the Great Falls area and can point you to some good people if you need. To be clear though, I don't do contractor work anymore just manage contractors, but I love to talk real estate and help others that do to.

Have a great day!