Retire
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Retire (by Pete [IN]) Nov 20, 2021 4:53 PM
       Retire (by Richard [MI]) Nov 20, 2021 5:29 PM
       Retire (by BRAD 20,000 [IN]) Nov 20, 2021 7:39 PM
       Retire (by BRAD 20,000 [IN]) Nov 20, 2021 7:39 PM
       Retire (by Robert J [CA]) Nov 20, 2021 7:56 PM
       Retire (by BRAD 20,000 [IN]) Nov 20, 2021 11:12 PM
       Retire (by Oregon Woodsmoke [ID]) Nov 21, 2021 11:14 AM
       Retire (by myob [GA]) Nov 22, 2021 10:25 AM
       Retire (by Ray-N-Pa [PA]) Nov 22, 2021 11:26 AM
       Retire (by myob [GA]) Nov 22, 2021 3:28 PM
       Retire (by Pmh [TX]) Nov 22, 2021 4:59 PM
       Retire (by plenty [MO]) Nov 22, 2021 9:44 PM
       Retire (by David Krulac [PA]) Nov 26, 2021 12:03 PM
       Retire (by Patti [OK]) Nov 26, 2021 1:22 PM
       Retire (by Rich [TX]) Nov 26, 2021 5:11 PM
       Retire (by Robin [NV]) Nov 27, 2021 12:56 AM
       Retire (by Don [NY]) Nov 27, 2021 7:15 AM
       Retire (by Sakar [MD]) Nov 27, 2021 9:46 AM
       Retire (by Sakar [MD]) Nov 27, 2021 9:51 AM

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Retire (by Pete [IN]) Posted on: Nov 20, 2021 4:53 PM
Message:

Currently we own 50 single family homes in Indianapolis. They are held in an Llc. Is there any benefit to moving them to an s corporation? Also thinking of selling all my single family homes. Thinking of exiting real estate. Iím scared if I were to die that it would be a mess for my family. Any advice on how all real estate and other assets can best be left to beneficiaries. Thanks for your time and info --107.77.xxx.xx




Retire (by Richard [MI]) Posted on: Nov 20, 2021 5:29 PM
Message:

An excellent question that many of us are facing, myself included.

I'm in the situation where my family is NOT interested in owning rentals at all. They have decided to go a different way.

So, what do I do with them?

Before I say what my choice is, I'd also like to hear some other suggestions. --75.7.xx.xx




Retire (by BRAD 20,000 [IN]) Posted on: Nov 20, 2021 7:39 PM
Message:

Pete,

I think if you have an organized business and capable helpers (bookkeeper, handyman) the rentals could keep providing income IF IF IF your heirs so desire.

Or they can sell them off one by one as they come open.

The heirs receive a stepped up basis so selling/negotiating is easier and more profitable to them than to you.

For what it's worth I am moving out of low end homes by 1031ing them into fewer, larger, nicer, easy to rent, easy to maintain houses. Example: two or three scrappy rentals into one nice home, no money out of pocket and no taxes paid on the sale of the two I've had a long time, totally depreciated out.

I am no longer worried about ROI, I am focusing on "easy" and "sustainable".

My dream - sell everything at once and 1031 the money into farmland. Income without people and toilets and moratoriums. In fact the govt will pay to NOT grow on certain land!

LLC - I THINK you could simply sell someone your shares in the LLC.

BRAD --73.102.xxx.xxx




Retire (by BRAD 20,000 [IN]) Posted on: Nov 20, 2021 7:39 PM
Message:

PS

Congrats on building a large business Pete!

BRAD --73.102.xxx.xxx




Retire (by Robert J [CA]) Posted on: Nov 20, 2021 7:56 PM
Message:

Pete, you sound successful, but you have to (a must) consult with a top Probate and Estate Attorney in your State. Having everything in one LLC is "dumb". Now you have 1 LLC worth 50 homes. I have each property held differently so that if a problem occurs, the suing party has the option to accept an insurance payment (with a limit) or sue.

Just to let you know I have many friends who do NOT consult the right attorney and end up paying more taxes than necessary. --47.155.xx.xxx




Retire (by BRAD 20,000 [IN]) Posted on: Nov 20, 2021 11:12 PM
Message:

Pete,

Good advice by Robert.

I just realized your LLC props will probably not get a stepped up basis for your heirs.

Get a good atty to review this.

BRAD --73.102.xxx.xxx




Retire (by Oregon Woodsmoke [ID]) Posted on: Nov 21, 2021 11:14 AM
Message:

[[[[...... The heirs receive a stepped up basis.....]]]]

So far.

I suspect that this tax law is on very shaky ground and stepped up basis might soon be removed as an exit plan from estate planning. The government is going to be hunting new sources of tax revenue like a pig hunting truffles. --76.178.xxx.xxx




Retire (by myob [GA]) Posted on: Nov 22, 2021 10:25 AM
Message:

we have set up (back in 2001 and recently redone Aug 2021) our trust.

Our rentals are in an FLP that is being held by the Holding company (INC). All is tied together in the Estate Plan.

Our original plan and now updated took much time and frankly we have more to protect now -- 20 years later.

The bottom line-- once the plan is activated (aka we both pass away) the trustee in-line decides. We will be gone and we made the decision the Trustee-- whoever that is does what they think best-- sell / hold / whatever.

We also made it clear to those inline it is THEIR DECISION. --99.103.xxx.xxx




Retire (by Ray-N-Pa [PA]) Posted on: Nov 22, 2021 11:26 AM
Message:

Pete

Having them in an LLC does create some value - as long the LLC isn't to big.

With the real estate being in an LLC you can always sell the LLC without specifically naming the real estate. In doing so you would be selling the places subject too.

To follow up on Robert's input, if an LLC gets too big, then the pool for buyers gets smaller and small while the amount of liability increase.

Another option you have is doing individual land trust as outlined by MYOB. The LLC then manages the places --24.101.xxx.xxx




Retire (by myob [GA]) Posted on: Nov 22, 2021 3:28 PM
Message:

yes ray manages under the FLP under the direction of the INC. Holding Company. The inc. has one assets -- a van and one employee. It also retains the Rental Deposits as required by law. Since we manage more than 10 the deposits are in escrow. Tennats are made aware of the location of their deposits to meet that requirment of the law. --99.103.xxx.xxx




Retire (by Pmh [TX]) Posted on: Nov 22, 2021 4:59 PM
Message:

congrats. you do need to talk to estate attorney and to tax attorney. preferably attorneys who have worked together. --107.77.xxx.xxx




Retire (by plenty [MO]) Posted on: Nov 22, 2021 9:44 PM
Message:

Agree. Talk to an estate planning person. It wasn't as painful as we thought it would be. Actually bought some resolution. They will handle all the deeds and paperwork. Tip: find one younger than you! --172.58.xx.x




Retire (by David Krulac [PA]) Posted on: Nov 26, 2021 12:03 PM
Message:

Thanks, Brad 20,000. We have been using 1031 to sell properties this year, involving a bunch of properties this year. (been doing 1031 since 1986) Its a very valuable tool, along with the stepped up basis, two of the best aspects of the tax code. We also sold out personal residence this year, historic high prices, tax free (not a 1031), and bigger than we really need. Also sold beach house this year. And sold smaller, older, lower rent properties and exchanged into higher rent properties, newer, bigger, and larger properties.

Also moved into more managed properties to reduce my work load. And I will be continuing to do more in 2022, along the same lines. With historic high prices, historic low interest rates and possible tax changes, now is a great time to sell, pay no taxes and upgrade your rental portfolios with better, higher class rental. --152.208.xx.xxx




Retire (by Patti [OK]) Posted on: Nov 26, 2021 1:22 PM
Message:

We are planning to retire yet. When we do we will be selling them off one at a time. First, loop the residential ones and keeping the commercial property.

All of the flippers never call me about selling my commercial properties only residential. --68.97.xxx.xx




Retire (by Rich [TX]) Posted on: Nov 26, 2021 5:11 PM
Message:

I'm just about to turn 65 and don't have any heirs. I'm starting to sell my houses in 1031 exchanges and invest in syndicates. Many of these passive investments have higher returns than I'm getting on my current equity. --172.14.xx.xx




Retire (by Robin [NV]) Posted on: Nov 27, 2021 12:56 AM
Message:

What is a syndicate?

--107.126.xx.x




Retire (by Don [NY]) Posted on: Nov 27, 2021 7:15 AM
Message:

Regarding 1031 exchange into a syndication, I've not been able to get a definitive answer from my tax accountant nor real estate attorneys. Can anyone provide direction?

--24.194.xxx.xxx




Retire (by Sakar [MD]) Posted on: Nov 27, 2021 9:46 AM
Message:

Hello Don, For 1031 exchange to workout into a syndication, it has to be setup as a Tenants-In-Common (TIC) structure. Depending on the project (whether it is a new construction, or apartment's buy/hold); this TIC can be setup in different ways to allow for more flexibility/dispostion, etc. For ex, within a new construction the TIC can be setup only for the Land portion off it, etc. So; the 1031'ing party exchanges into the TIC; which ultimately is the party/member into the syndication LLC.

In short, it is absolutely possible and has been successfully done many times. Just need to consult lawyer properly who has structured such projects before. Hope this helps. --72.85.xx.xxx




Retire (by Sakar [MD]) Posted on: Nov 27, 2021 9:51 AM
Message:

Hello Robin, The syndicate is nothing but a "group investment opportunity" led by a sponsor (typically a group of individuals/company). One can syndicate pretty much all kinds of investment projects; from land, apartments, self storages, business opportunities (retail, cash wash, pharma, etc etc). It is all legal and has to be properly structured by SEC attorneys and post closing paperwork (called bluesky filings) has to be filed with SEC properly by attorneys. Hope it helps. --72.85.xx.xxx



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