All Forum Posts by: Damon Kellar

@Ned Carey - I bought the property outright funded by a margin loan against my other assets. It took me a bit to get the Trust renamed and then the underlying LLCs created. I need to refinance now that it's in the LLC (my original lender wouldn't do it in the LLC so I need to find a new lender that will do the loan there. New to this so making the mistakes on the front end. :)

Kind of a loaded question - but my wife asked me and I didn't know the answer. We are interested in the STR market (currently trying to get our first property listed (next week hopefully)) and she's listened to most of Luke and Avery's podcasts, and they are hosting several of the breakout sessions.

Is the content at BPCON different from what we are going to get via podcasts (aside from the networking opportunities)?

Thanks 

Sorry - should have put this in Goals, Business Plans and Entities forum.  Please move if possible.

My better half and I bought our first STR investment property last week, with plans to acquire at least 2 more this year if we can find the right properties. We are putting this property into an AR LLC and was thinking more strategically about the long term holding structure design. Arkansas is not a community property state, so both of us being members creates a partnership, which I'd like to avoid.

I was thinking about creating a Wyoming LLC as the holding company with wife and I as members, so at least there is only 1 partnership, but then got to thinking about the estate planning side of LLC ownership. I believe I can put the Wyoming LLC into a trust, but does that create any issues for operating the LLCs in general? Does the holding company LLC in the trust eliminate the partnership issues as well?

Ok, well I was speaking from experience (I'm in that scenario), and trying to help if it is something you're considering - look into local requirements.  Otherwise, wasn't trying to get into an argument :).

Completely agree selling surplus back is a blessing - otherwise it's going to waste.  My problem is if I generate .1kwh and use .1kw an hour - some locations require that I sell that .1kwh at wholesale rates, but then require me to repurchase that .1kwh at retail rates.  That's the fundamental issue and isn't a blessing.  If I'm only required to sell what I don't use GREAT.  Otherwise it doesn't make sense.

Quote from @Clement Ndifor:

Quote from @Damon Kellar:

You also need to look into and understand the local laws related to producing power, on a commercial basis (your MF unit).  Some states / municipalities require that you sell the power back into the grid a wholesale prices and then basically repurchase that same power at market rate.  

But on a + side - you can qualify for a extra tax credit under the IRA.

 That is the requirement everywhere in the United States and we are blessed to have it so.  This way the power company serves as your power bank.  They only take the extra energy you cannot use at that moment and sell it back to you will a discount. 

That's not true.  Some states/localities allow you to store the power for use and not worry about selling it back.  Selling less than cost is not a blessing.  Selling surplus is fine, otherwise it's a disincentive to do it.  

You also need to look into and understand the local laws related to producing power, on a commercial basis (your MF unit).  Some states / municipalities require that you sell the power back into the grid a wholesale prices and then basically repurchase that same power at market rate.  

But on a + side - you can qualify for a extra tax credit under the IRA.

Learning to find / finding the deal that makes the economics work.  Have the capital, just have to find that right property.  Just kissing a lot of frogs.

There's a 6 unit multi-family complex that I've found listed online.  I reached out to the listing agent and didn't get a response.  There's no list price for the complex.

How do I go about valuing the property and do I need my own commercial agent to help w/ the process rather than the listing agent?  Or since this is my first property should I find sometime else to start w/?