topic flip flop Real estate investment with friend in Investing https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605 <P>I am investing 100% money to buy a property with my friend.&nbsp; &nbsp;My friend will do all the management work to hire and fix up the property and will sell the property for profit.&nbsp; &nbsp;Profit&nbsp; is split between us 50 50.&nbsp; &nbsp;He is buying the home under his company LLC.</P><P>My question is what form I need from him to report my share of the profit of the investment that I made.&nbsp; &nbsp;Since it is investment income, I want to fill the schedule D so I can&nbsp; pay the low tax on my gain.&nbsp; &nbsp;Thank you</P> Sun, 01 Nov 2020 22:08:31 GMT shafiq 2020-11-01T22:08:31Z flip flop Real estate investment with friend https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605 <P>I am investing 100% money to buy a property with my friend.&nbsp; &nbsp;My friend will do all the management work to hire and fix up the property and will sell the property for profit.&nbsp; &nbsp;Profit&nbsp; is split between us 50 50.&nbsp; &nbsp;He is buying the home under his company LLC.</P><P>My question is what form I need from him to report my share of the profit of the investment that I made.&nbsp; &nbsp;Since it is investment income, I want to fill the schedule D so I can&nbsp; pay the low tax on my gain.&nbsp; &nbsp;Thank you</P> Sun, 01 Nov 2020 22:08:31 GMT https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605 shafiq 2020-11-01T22:08:31Z Re: flip flop Real estate investment with friend https://ttlc.intuit.com/community/investing/discussion/re-flip-flop-real-estate-investment-with-friend/01/1739408#M606 <P>What form? Sounds like you're going to be 50/50 partners....or members.....in an LLC and you need a lawyer to write an operating/partnership agreement for the two if you. This type of company will file a form 1065 and you'll get a K1 for your share of income or loss.</P> Mon, 02 Nov 2020 00:30:32 GMT https://ttlc.intuit.com/community/investing/discussion/re-flip-flop-real-estate-investment-with-friend/01/1739408#M606 martinmarks1919 2020-11-02T00:30:32Z Caution about Buying RE in Someone Else's LLC https://ttlc.intuit.com/community/investing/discussion/caution-about-buying-re-in-someone-else-s-llc/01/1739570#M607 <P>If you're giving money to an existing LLC, what percent owner of the LLC will you be.</P><P>&nbsp;</P><P>This sounds <STRONG>dangerous and needlessly complicated</STRONG>.&nbsp; You're putting in all the money, right? Why don't you just buy it and give him a legally binding agreement to give him half the profit when it sells if he does the work?&nbsp;</P><P>&nbsp;</P><P>There is a risk he won't do the work because of sickness or some other life event.&nbsp; There is a risk the RE (real estate) market will tank as it did in 2008, and you'll end up losing money.&nbsp;&nbsp;</P><P>&nbsp;</P><P>If I were doing this, I would ask him what he thinks is a <STRONG>good amount of profit he hopes to get</STRONG> on this.&nbsp; I would offer to pay him that amount weekly or biweekly as he completes the work.&nbsp; If it will motivate him to help it get sold, there could be a bonus for him based on your profit when you sell.&nbsp; The house would be 100% in your name.&nbsp; The advantage to him is he get paid a good amount immediately when he does the work, not at some future date subject to the vagaries of the RE market.&nbsp; The advantage to you is you can hire someone else if a life event keeps him from doing the work.&nbsp; You're still exposed to the risk of a fall in RE prices, but you're also exposed to the potential benefits if prices go up.&nbsp; You both give up the risk of disagreeing on whether to take an offer, where one of you is eager to get paid but the other wants to wait for a better offer.&nbsp;&nbsp;</P><P>&nbsp;</P><P>As yourself what good comes from his LLC owning it vs the person putting in the money owning it.&nbsp; You can still be partners, with a simple agreement to pay him what you both agree is a good profit for him as he does the work.&nbsp; But you would own it, and you would control whether to have someone else do all or part of the work, and how or when to sell the property.</P> Mon, 02 Nov 2020 16:21:51 GMT https://ttlc.intuit.com/community/investing/discussion/caution-about-buying-re-in-someone-else-s-llc/01/1739570#M607 cgervasi 2020-11-02T16:21:51Z
This XML file does not appear to have any style information associated with it. The document tree is shown below.
<rss xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#" xmlns:taxo="http://purl.org/rss/1.0/modules/taxonomy/" version="2.0">
<channel>
<title>
topic flip flop Real estate investment with friend in Investing
</title>
<link>
https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605
</link>
<description>
<P>I am investing 100% money to buy a property with my friend.&nbsp; &nbsp;My friend will do all the management work to hire and fix up the property and will sell the property for profit.&nbsp; &nbsp;Profit&nbsp; is split between us 50 50.&nbsp; &nbsp;He is buying the home under his company LLC.</P><P>My question is what form I need from him to report my share of the profit of the investment that I made.&nbsp; &nbsp;Since it is investment income, I want to fill the schedule D so I can&nbsp; pay the low tax on my gain.&nbsp; &nbsp;Thank you</P>
</description>
<pubDate>Sun, 01 Nov 2020 22:08:31 GMT</pubDate>
<dc:creator>shafiq</dc:creator>
<dc:date>2020-11-01T22:08:31Z</dc:date>
<item>
<title>flip flop Real estate investment with friend</title>
<link>
https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605
</link>
<description>
<P>I am investing 100% money to buy a property with my friend.&nbsp; &nbsp;My friend will do all the management work to hire and fix up the property and will sell the property for profit.&nbsp; &nbsp;Profit&nbsp; is split between us 50 50.&nbsp; &nbsp;He is buying the home under his company LLC.</P><P>My question is what form I need from him to report my share of the profit of the investment that I made.&nbsp; &nbsp;Since it is investment income, I want to fill the schedule D so I can&nbsp; pay the low tax on my gain.&nbsp; &nbsp;Thank you</P>
</description>
<pubDate>Sun, 01 Nov 2020 22:08:31 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/investing/discussion/flip-flop-real-estate-investment-with-friend/01/1739348#M605
</guid>
<dc:creator>shafiq</dc:creator>
<dc:date>2020-11-01T22:08:31Z</dc:date>
</item>
<item>
<title>Re: flip flop Real estate investment with friend</title>
<link>
https://ttlc.intuit.com/community/investing/discussion/re-flip-flop-real-estate-investment-with-friend/01/1739408#M606
</link>
<description>
<P>What form? Sounds like you're going to be 50/50 partners....or members.....in an LLC and you need a lawyer to write an operating/partnership agreement for the two if you. This type of company will file a form 1065 and you'll get a K1 for your share of income or loss.</P>
</description>
<pubDate>Mon, 02 Nov 2020 00:30:32 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/investing/discussion/re-flip-flop-real-estate-investment-with-friend/01/1739408#M606
</guid>
<dc:creator>martinmarks1919</dc:creator>
<dc:date>2020-11-02T00:30:32Z</dc:date>
</item>
<item>
<title>Caution about Buying RE in Someone Else's LLC</title>
<link>
https://ttlc.intuit.com/community/investing/discussion/caution-about-buying-re-in-someone-else-s-llc/01/1739570#M607
</link>
<description>
<P>If you're giving money to an existing LLC, what percent owner of the LLC will you be.</P><P>&nbsp;</P><P>This sounds <STRONG>dangerous and needlessly complicated</STRONG>.&nbsp; You're putting in all the money, right? Why don't you just buy it and give him a legally binding agreement to give him half the profit when it sells if he does the work?&nbsp;</P><P>&nbsp;</P><P>There is a risk he won't do the work because of sickness or some other life event.&nbsp; There is a risk the RE (real estate) market will tank as it did in 2008, and you'll end up losing money.&nbsp;&nbsp;</P><P>&nbsp;</P><P>If I were doing this, I would ask him what he thinks is a <STRONG>good amount of profit he hopes to get</STRONG> on this.&nbsp; I would offer to pay him that amount weekly or biweekly as he completes the work.&nbsp; If it will motivate him to help it get sold, there could be a bonus for him based on your profit when you sell.&nbsp; The house would be 100% in your name.&nbsp; The advantage to him is he get paid a good amount immediately when he does the work, not at some future date subject to the vagaries of the RE market.&nbsp; The advantage to you is you can hire someone else if a life event keeps him from doing the work.&nbsp; You're still exposed to the risk of a fall in RE prices, but you're also exposed to the potential benefits if prices go up.&nbsp; You both give up the risk of disagreeing on whether to take an offer, where one of you is eager to get paid but the other wants to wait for a better offer.&nbsp;&nbsp;</P><P>&nbsp;</P><P>As yourself what good comes from his LLC owning it vs the person putting in the money owning it.&nbsp; You can still be partners, with a simple agreement to pay him what you both agree is a good profit for him as he does the work.&nbsp; But you would own it, and you would control whether to have someone else do all or part of the work, and how or when to sell the property.</P>
</description>
<pubDate>Mon, 02 Nov 2020 16:21:51 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/investing/discussion/caution-about-buying-re-in-someone-else-s-llc/01/1739570#M607
</guid>
<dc:creator>cgervasi</dc:creator>
<dc:date>2020-11-02T16:21:51Z</dc:date>
</item>
</channel>
</rss>