All Forum Posts by: Ryan Johnston

@Nicholas Anderson Yes, sign a partnership agreement.  Something that outlines the scope of your agreement.  When I spoke to my CPA, he basically said to track all expenses, and distributions.  Literally everything.   i.e. Let’s say we have $10,000 in reserves, my partner wants to withdraw half (which they would be taxed on), but I don’t want to do a withdrawal.  A year goes by, and our reserves are now built back up to $10,000.  If we called it off, I would be entitled to $7500 of this ($5000 of the original amount + $2500 (50% of the $5000 we made in that year).  Could get confusing pretty quickly, without recording correctly.  

@Nicholas Anderson Sounds good, Nick.  From what I’ve gathered, a lot of these questions comes down to the structure of the partnership.  I am doing a 50/50 split with my partner.  We will share in everything.  Expenses, profit, etc.  We set up a business account, and have an agreement that we will not withdraw any amount, unless absolutely necessary, and agreed upon by both parties.  We plan on buying additional properties though, so we will be re-investing our profits.  Long story short, it all boils down to the structure of your partnership. 

@Nicholas Covington So would it be best to go ahead and do the quit claim deed transfer into an LLC, or just keep in our names?  Worst case scenario: Let’s say we did in fact transfer, and the bank came back demanding the mortgage to be paid in full.  What are my options?  Am I overthinking all of this?

Hey guys. Just had an offer accepted on my first property. This property is going to be in my partner and I's personal names, as we don't have an LLC as of yet. We've been advised to close in our name, and then transfer the deed into an LLC via Quit Claim deed.

Here’s my question: 

How concerned should I be with the"Due on Sale clause"? Is it better to simply close in our names, and refinance into the LLC in a few months? It seems putting a property into an LLC is much more complicated than I originally thought.

@Jon Schoeller Thank you, Jon! It's the first deal for both of us. Would you recommend we close as individuals (both on title), and then transfer in to a joint LLC? We want to ensure we are covering our assets adequately. New to all of this.

Hi guys.  A family member and I have decided to invest in a property together.  We have agreed on a 50/50 split, in which they will fund majority of down payment, and I will manage the property.  We will split rental income profits, and will split profits if we sell the property in the future.

Would you recommend us BOTH being on the title, or would it make more sense for us to sign a partnership agreement stating scope of agreement, in which only one of us (me) is on the title?  

@Mike McCarthy Thanks Mike.  Would you recommend something like Umbrella insurance?  

Hey guys.  Offer was just accepted on my first property.  2 quick questions:

1. Should I go ahead and form an LLC for this first property?
2.  Is there any issue with me contributing my personal funds to an LLC?  Ex: Sending money from my “day job”, to the business account, in order to fund other deals.

Thanks for the help, guys!  All good info.  Really appreciate it.

Looking for tips/strategies for automating Air Bnb rentals? In particular, the cleaning. I'm not looking to completely remove myself from managing, but I would like to streamline as much as possible. FYI, hopefully going under contract for my first property today. Goal is to obtain additional properties, but I want to have a fim grasp on it, and have proven systems in place. Any advice/tips on STR automation would be greatly appreciated. Thanks.