All Forum Posts by: Kevin S.
Kevin S. has started 24 posts and replied 394 times.
Post: How to handle the tax forms from the property manager and the bank?
- Posts 398
- Votes 240
Quote from @Account Closed:
Quote from @Dmitriy Fomichenko:
You have a flawed setup. A 401k does not require a custodian or a third-party administrator (TPA), and you don't need an LLC to have checkbook control for your 401k. You just need the right provider to set it up better. We set Solo 401k plans for our clients in the form of a trust instead of using a custodian. The trust will have its own EIN, and as a trustee, you control it. This way, you will eliminate the custodian completely with its fees, red tape, etc. The end result - are you truly in the driver's seat of your 401k!
As trustee of the plan, you can open a bank account in just a few hours at one of our preferred banks. If you need a brokerage account at Fidelity, you open Fidelity's Investment-Only Non-Prototype Retirement account for the 401k; there is no need for the LLC. Your structure is complex and not cost-effective. Try to always remember and apply the KISS principle (keep it simple).
I also would recommend Fidelity. They are easy to get started with an the support has been OK compared to others
I am going to jump in here for few questions.
Does it make sense to buy RE in retirement account(401K) as the tax benefit and write off are not similarly applicable as outside of 401K?
What happens to the REI/portfolio when it's time for RMD? Liquidate all properties? What are the tax implications then? How does it pass down to heirs? Thanks in advance.
Post: LLC or Trust to hold investment property?
- Posts 398
- Votes 240
Quote from @Shawn McCormick:
@kevin
@Kevin S. If you are financing, you may be limited to closing in your name. If you are paying cash or seller finance etc, you'll have options.
I close in a land trust or transfer to a trust after if I'm financing. A land trust provides anonymity (you can hold and transfer properties outside of public records) Then I have my LLC be the beneficiary of the land trust. So liens and lawsuits become more difficult to pursue. I have two great contacts here in Orlando if you need.
Thank you Shawn. I will DM you later for the info!!
Post: LLC or Trust to hold investment property?
- Posts 398
- Votes 240
Quote from @Bob S.:
Quote from @Kevin S.:
This will be my first...What do you suggest? Thanks.
Do one, then worry about how to set it up. It may take you months to get one. Worry about getting a deal closed, everything else is easy,
You can transfer to an LLC after,
All the best
Hi Bob, I am closing on the property in about 10 days and lender is asking what would I title the property under. Trust was one of the option given. Since I never heard of Trust mentioned on BP I got curious and put the question out here. Appreciate your input.
Post: LLC or Trust to hold investment property?
- Posts 398
- Votes 240
This will be my first...What do you suggest? Thanks.
Post: LLC or Trust to hold investment property?
- Posts 398
- Votes 240
Hi members,
What is the preferred way to hold investment properties? My attorney(estate planning attorney) suggested two options.
1. LLC or...
2. My JRT (joint revocable trust) that I already have and buy umbrella policy.
On BP forum it's usually mention of LLC or personal name with umbrella policy, don't remember mention of JRT.
What would you recommend and why? Thanks in advance!
Post: Re-Inspection after storm just passed through while under contract?
- Posts 398
- Votes 240
Quote from @Corby Goade:
Quote from @Kevin S.:
Thanks Corby.
There is no wording in the contract about re-inspection. Only mention the property has to be delivered in the condition it was during inspection. I don't know if I have "right" to re-inspection if I am out of inspection period. My guess is the seller will have no incentive to allow re-inspection. And if there is wind(roof) damage then a whole lot of question arises. Hoping some one here have had experience/knowledge of such event.
Seem about similar to contract here but worded differently. I will ask for re-inspection but if seller refuse and allow only walk through on day of closing I am no expert to know anything about the roof. So even though contract states what it states, how to go about it is the challenge. Thanks for your response, Corby.
Post: Re-Inspection after storm just passed through while under contract?
- Posts 398
- Votes 240
Thanks Corby.
There is no wording in the contract about re-inspection. Only mention the property has to be delivered in the condition it was during inspection. I don't know if I have "right" to re-inspection if I am out of inspection period. My guess is the seller will have no incentive to allow re-inspection. And if there is wind(roof) damage then a whole lot of question arises. Hoping some one here have had experience/knowledge of such event.
Post: Re-Inspection after storm just passed through while under contract?
- Posts 398
- Votes 240
Thanks for your input, Andrew. You are right, I am out of inspection period. I don't live in the city where it's located and don't think it burnt to the ground. I am concerned about the roof mainly. Trying to determine if I have the right to re-inspect, what to do if there is (roof) wind damage? Will the seller be willing to file a claim if under contract? How will this affect closing?
Post: Re-Inspection after storm just passed through while under contract?
- Posts 398
- Votes 240
Thanks for taking the time to write your response. I am willing to bear the cost of re-inspection in order to move it forward. I haven't heard back from insurance company yet whether they need a re-inspection before they insure the property.
Would you rely on inspector or a roofer/roofing company to tell me if there is roof damage? On one hand roofer will know more than an inspector if there is roof damage but at the same time a roofer has an incentive to replace the roof. What's your suggestion?
BTW, which part Florida do you represent?
Post: Re-Inspection after storm just passed through while under contract?
- Posts 398
- Votes 240
I agree. I have been advised to do just that, to make sure the property still exists, as strange as it sounded to me initially.
What do you do if there is damage either on day of walk thru or I find out with re-inspection? I am trying to have an answer before I find myself in that situation. Hopefully not. Thank you and I appreciate your input.