All Forum Posts by: Dan Thomas

From what I understand an LLC is a pass through entity and does not provide the same write off benefits a s or c corp does. Again, this is just what I have gathered over the years so you should take your tax professionals advice however I'm pretty certain an LLC does very little in terms of tax benefits. It is mostly for segregation of assets for risk management.

Yes, my cpa told me the same thing about depreciation. At the end of the day (from what I understand) it is a wash anyway. When you sell the property, if you depreciate it, you pay the recapture. Does your tax professional suggest you create this LLC and have a 1% owner? Seems like this may be finding a way to force the depreciation issue....is there value in doing that? It doesn't appear so to the layman. I'm not well versed in the tax code by any means but this whole depreciation thing seems like something that applies to some people based on individual circumstance but the gurus preach it to the masses.

@Richard Pastor

I would urge you to get a commitment from a lender on a heloc BEFORE going down this path. In my experience in this market almost no one is doing them. If they are, it will be expensive and / or require SIGNIFICANT equity. I wouldnt want to see you get to the point of needing the heloc and finding out it isn't feasible. Make sure the lender knows this is an investment. That usually ends the conversation.

Found this post on indeed today......Several people a day post about looking for a "mentor".  I have no affiliation or connection to these guys, literally know nothing about them, but looks like a great opportunity to get in the industry and learn from folks who appear to be growing.  They even mention in their ad that they will help develop you.

https://www.indeed.com/jobs?q=part+time+operations&l=new...

@Alicia Kuluris

I know I'll get slammed for even mentioning this but what about an arbitrage arrangement? It is an str already so the points about excess wear and tear are irrelevant. You maintain the future equity and let him take the frustration of dealing with guests. He can use it as much or little as he wants and it wont cause friction. You mention he wants to use it....that can create friction in a partnership.

From a partnership arrangement I dont see the benefit here. Sure you will get some cash but you give up equity. Equity is the whole reason you invest in CA. You have already done the hard part.

@Mohammed Rahman

I respectfully disagree. Use the enemy method. These sites are a complete waste of time and money. I speak from the experience of owning in both Vermont and NH. Any paying for the terrible data these sites provide.

They may work in more populated areas but their "data" in rural vt and nh is garbage.

Enemy method all the way.

@Michael Belz

Airdna may have been the biggest waste of $400 i have ever spent. Comps are way off. I literally got nothing out of it. Canceled it after the first year.

@Clare Cui

I dont tip per job. I have 1 that does alot of work for me over multiple properties. I send him a Christmas card with about 10% of his annual bills in cash.

I have another who does sporadic work and similar to the above I refer him out often, have bought him lunch, etc. If he dis more work for me I would probably send him a bonus too.

Think about it. If they are good they will probably book up quick. Aree they going to walk away from someone who sends them cash at Christmas?

@Marco McElwee Jr.

You said it yourself....you learn by doing.

Go get a deal done. You will learn more about the business finding your way through it than any book, podcast or YouTube video will teach you.

You can have mentors that don't even know you exist. What I mean by that is you don't need some formal relationship or arrangement. Most of my mentors are contributors on this site, we have never met or had a conversation. Follow the ones that you respect. You will get soooo much FREE AND ACTIONABLE advice here on BP.

Ask good questions and most of the time you will get good answers. Good luck!

@Henry Clark

In my experience the SBA is very unwilling to finance entrepreneurs without experience in the current market. How do you reccomend he overcomes this?

Business needs to be operating for 2 years OR you need significant DIRECT experience.