All Forum Posts by: Steve Smith

Yes, even though mine have names for accounting and titling purposes I'll usually use addresses to a point.

You couldn't pay me enough to do section 8, WAY too much work and BS with government people (who are hired idiots that have no clue). But you also couldn't pay me enough to invest in Baltimore, either.

Zach,

Good advise but LLCs are a PITA. Trusts work just fine. There's very little exposure with a trust, as no one knows the beneficiary and the trustee is protected by law. And once you learn trusts, you can make all you want, easy without costs and without anyone knowing about them. I've use them for over 40 years, never been sued against the trust, and of the few law suits against the property manager we never lost one. But in the past 20 years, learned how to totally eliminate that.

Insurance is your first line of defense, and being anomalous (trusts), works great.

I could argue strongly that you just don't need a CPA, ever, for RE investing. You don't need audited statements. Get a good tax advisor, and probably an accountant, but you really only need tax advise in the beginning years until you can figure out how to shelter your taxes and get your Roth in order.

And, there's a big argument to just do some learning on your own. But for the first few years, get a basic accountant.

I like to name my properties. It's fun and identifies them.... the Murf house, the Bodo house. Dollybrook, Deng, Melrose, Paddock, etc, etc. It's fun and easy to track. And provides for good memories... or bad ones. Have had zero house with bad memories, but a few multi-family.

Keep track over the years and see what properties which work out well and what ones are loosers to get rid of. Profits on them, good and bad tenants... etc,

Anyone else?

Thx, And good points.

I'd title the property to the entity that needed the tax break, for the most apart and give the income to the entity that didn't pay taxes (Roth). Do that with options. (I've done that many times, and am currently doing that). Probably give title to the kids.

I rarely do 1031s any more, but have often helped others do them.

What's PAL?

I could argue to put your rental properties in a trust, but read up on them and learn what they will do, not do for you. Keep your name off things and have a separate entity to manage your properties, even if you show it, and qualify them.

Insurance is your first line of defense with liability. But good ownership tactics and asset protection is prudent, too. Unless you run a high risk business, I'd not use an LLC, and especially NOT for ownership (zero advantage).

I'm single, so have that advantage (or disadvantage). I understand about not giving them a house (loose the stepped up basis). Right now, I believe I'll help them just buy a few more properties and help them build their portfolio. Fund the property with good a good loan and/or use options to control so they benefit, which is not hard. But would like to seen the kids Roth grow a lot.

Thx Jonathan,
Advisors really don't know much more than I already know (have a built in tax advisor). They like to do traditional stuff. I'd like to get some "out of the box" ideas from folks who have done stuff. There are some very creative ways to transfer dollars into their IRAs, but can be in the grey area which I want to be very careful of. Right now my Roth can fund a deal for a friend who can give my kids IRA an option to purchase down the road, and set it up to favor the kids roth. (A bit grey).

Anyone active in transferring assets to their kids? Looking for creative idea to give them a few more dollars before I croak. I already give them the non taxable limit, but am giving them options on property, leases and notes where they can get more in the future, and working with others so they get more into their Roths with options.

Other ideas?