All Forum Posts by: John Lard

Craig,

Thank you for your thoughtful response. My question did not pertain to the merits of my partnership but instead was to how to account for the transfer of funds to purchase the property.

How would one classify a transfer of funds from the LLC to an individual to purchase a property in his name?

Thank you.

John

Hello,

Does anyone have experience with the "KISS Guide to Bookkeeping?" It appears that this guide is 10+ years old and I am wondering if it is still relevant. Online reviews are lacking and most Google hits appear to be others selling the product.

Also, has anyone used John Hyre's company for accounting services?

Thank you.

John

Hello,

I am a member of a recently established 2-member LLC. We are looking to purchase our first property using leverage. In order to qualify for more conventional loans, we will each purchase a property with the mortgage in one member's name. That way, we could each qualify for 4-5 loans.

What I learned, however, is that when an LLC has been in existence for less than 2 years, the purchase of the property by the individual cannot use funds from an LLC bank account. E.g. the check used to purchase the property must come from the individual's bank account.

My question is with regards to the accounting of these transactions. Member A and B have 50% equity in the LLC. Say the purchase requires $20k up front, to come from a personal bank account of Member A. He purchases the property and then deeds it to the LLC. How do we account for this in terms of the equity accounts of the LLC?

One potential way to handle this is for each of us to make capital contributions to the LLC, say $20k each. And then transfer $20k to Member A's personal account for the purchase of the property (must wait 60-90 days to become seasoned). How then would this be accounted for on our books? It shouldn't be classified as a draw since Member A's equity level should not change.

Thank you all,

John

Hi,

I will be investing in rental properties in Texas with an LLC. The LLC is chartered in California and I understand I will need to register it as a foreign-LLC Texas. My review of the website states that the fee is $700(!) to register a foreign LLC and only $300 for a non-foreign LLC. Is this yearly? And, why the $400 difference?

Thanks,

John

Shawn,

I too am looking for an accountant in the Bay Area. Did you ever find one?

John

Hi All,

I am a long-time lurker on the site and am now ready to take the plunge into REI. I am establishing a team and am looking for references for a CPA and attorney in the San Francisco Bay Area. Any recommendations? Thanks!