All Forum Posts by: Robert Carraway

@Marc Loftin Unfortunately, there's no legal structure that will protect your assets from your own negligence.  Get lots of insurance including an umbrella policy. (Should not be considered legal advice.)

@Scott Smith Thanks for weighing in. Great to have an actual attorney weigh in. I'm curious about the DST. Wouldn't you just be trading one problem for another. What I mean is wouldn't the DST subject the owner to the excessively high federal tax on trusts?

@ Looks like your latest house is in the Hickory Hill area.  That's better than Berclair.  I would also avoid Frayer (a TK favorite), Orange Mound and Whitehaven. Best of luck and keep us posted.

Katina, you really do need a CPA with real estate experience and familiarity with self-directed IRAs. While you can invest via an IRA, there are downsides and very strict rules particularly regarding any debt financing connected to the property in your IRA. Also, if you are investing for appreciation, a self-directed IRA is not ideal because you will pay ordinary income tax rates on the appreciation instead of lower capital gains rates. Tread carefully.

Thanks Victor for sharing this case study. It will be very eye opening for anyone considering a turnkey investment in Memphis.  The TK providers make it sound so easy to cash flow, but they often use very aggressive, if not unrealistic, assumptions. I am originally from the Memphis area and still visit family there often.  Crime is rampant in Memphis proper and many turnkey properties are in war zones.

I agree with Caleb. I'm not a lawyer, but I have heard from several investors that even if you set up an LLC outside CA you will still need to register with the CA franchise tax board and pay $800. If not, you probably will not receive the LLC asset protection in CA. Given that the CA fee is per LLC, you'll probably want to lump all your CA properties into one LLC until you have several. At that point, you may consider forming another LLC to protect one set of properties from another.

Thanks for sharing.  Substantial returns in such a short amount of time are truly a matter of being in the right place at the right time.  It is good to hear that you recognize this and don't attribute it to your investing expertise.  A little humility will keep you out of

Joe,

I agree with the rest of the posts.  There was no change to the Section 121 exclusion on capital gains for primary residences.