All Forum Posts by: James Bailey

You could look at Corporate Direct. They’re part of the Rich Dad Advisors network and do all states. 

I have a/some questions. I think more by example so I'll lay out some assumptions first. (All amounts are annual.)

Let's say that I have an investment property wrapped up in an LLC in Ohio, which we'll call O1 (Ohio #1). That LLC is owned by another holdings LLC in Wyoming, we'll call WH (Wyoming holdings). WH is then held by a single owner, me, in California.

O1 generates $10k a year in NIAF. I set aside $3k of it for future capex leaving $7k to be dispersed. (I'll get to that actually being done in a moment.) Let's assume depreciation on the property, and other deductions, totals $8k.

1. I'm assuming that O1, WH, and myself all have to do tax returns?

2. So, covering the dispersement, that $7k would go to WH, and then another dispersement to get it to me, right? What are the logistics of doing that?

3. From a tax perspective, there's $2k not covered by depreciation and deductions. Who payments the taxes on that? (O1, WH, or me?)

4. As an additional example, let's assume deprecation/deductions are $12k. Does that extra $2k of deductions fall through to me? Can I use that to offset my W-2 income? If not, what happens to it, if anything?

I've read a lot about using LLCs for asset protection. Some of that info barely discusses taxes and distributions of money, but nothing that really gets into it. I know things are dependent on state, and I know that anything said isn't legal counsel, so I'm just looking for general information.

I know there's a contingent of people who say not to use LLCs. I'm not covering that scenario here.

I'm not opposed to MFHs but am wary of the added management.

 I'm primarily looking for SFHs for LTR. Appreciation is nice but looking for cash flow. I'm thinking top end of $200k but right now I have very little to no capital to work with, which is why I'm only looking at this time.

I'm new to real estate investing but want to grow my investments beyond the paper assets we have. I live in Southern California but don't believe that investing here is in my best interests given the high cost of living. As such, I'm looking for cheaper places to acquire rentals with minimal down payments. I've been reading the books but need to put it into practice.

I'm a software engineer by trade and have worked with mortgage companies before so I'm pretty versed in how the loan process works.