All Forum Posts by: Billy Abildgaard

@Liz Murphy sorry to hear you going through this. Another thing I would recommend is go through and take pictures of the house and catalog anything that is broken or needs repair now. If this guy decides to start wrecking the house when he's actually ordered out it will be good to have documentation of the before / after. Hopefully won't happen, but you can never have too much documentation in a situation like this.

@Liz Murphy sorry to hear you going through this. Another thing I would recommend is go through and take pictures of the house and catalog anything that is broken or needs repair now. If this guy decides to start wrecking the house when he's actually ordered out it will be good to have documentation of the before / after. Hopefully won't happen, but you can never have too much documentation in a situation like this.

Hi @Edward Dones, I just took a quick look and see quite a bit of inventory with the tools I'm using. 

I'm actually helping a different client buy in the mid-Mass - Western part of the state now and could help in your search as well.  DM me what you're looking for so I can see how I can be more helpful and we can connect. 

Hi All,

Currently working on figuring out how to best structure a potential partnership.  General overview is each person would contribute roughly the same amount for a downpayment.  The plan is for a long term rental property to generate cashflow.  This would not be a flip or short term venture. 

Person A has much more expertise in regards to renovation, buying property, filling with tenants, property management, etc.  

Person B will be contributing roughly the same amount of money and help with initial renovation, but be mostly hands off after that.  

Looking for ideas from the community about how to structure things in a fair enough manner.  Not sure if Person A should get more equity, more cash off the top before splitting cashflow, etc.  Open to any and all ideas for how this should be structured, or for how you have structured similar arrangements in the past.  

Originally posted by @Amit P.:

There's been several topics on this company on BP, I would search for them... I think one of them even detailed their journey with the company.... They provide a marketplace for properties with tenants, and provide recommendations for property management, but they do not run the PM....

 Hi Amit, thanks for the reply I'll definitely give BP a good search!

Anyone ever check out the website roofstock.com?  A friend just sent it over to me.  Seems like a turnkey way to buy property in cheaper parts of the country.  Anyone ever use this or have any thoughts in general on this or turnkey in general?  

Originally posted by @Basit Siddiqi:

@Billy Abildgaard

MA S-Corps file form 355S and there is a minimum tax of $456
MA LLC's that are single member'ed would report information on person tax return. No minimum fee paid
MA LLC's that are multi-membered would filed form 3 which does not require a minimum fee.

S-corps are limited to allocating income based on ownership of shares
LLC's are flexible in ways of allocating income

S-corps can save taxpayer with payroll tax
LLC's are limited to saving taxpayer with payroll tax

You would also have to factor in what the initial and annual fees paid to the SOS for S-corps and LLC's.

@Basit Siddiqi I hear you always want more than one person in your LLC for liability reasons. Supposedly an LLC is easier to pierce if you're the only person in the LLC. I'd likely add a family member with 1% stake or something if that's the case. So sounds like S corps provide greater tax benefits then?

Originally posted by @Rich N.:

it depends on your situation. 

Are you trying to protect yourself against liability?
How many owners? If so, are they all equal partners?
Are you going to be hands on or property management?
Are your properties going to be local or out of state?

@Rich N. looking to get protection, but mostly best way to handle taxes.  Would likely be me and one other person with a small amount of equity.  I'll be doing the property management myself and plan to keep all properties in MA for now

for investors in Massachusetts with two or three properties how do you structure things? do you have an S corp for the taxes or something else? I know LLCs are expensive so wondering what others are doing.

You can always put down less than 20%, but then you'd be subject to PMI, which most people try to avoid.

If you buy a place that needs work you can always put down less than 20%, renovate, and then refinance with your higher appraised value to get rid of the PMI.