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  1. My grandmother passed away last week and we are trying to determine if her estate needs to go through probate or what we need to do. She had about $110K in the bank plus a contract on a home she sold worth about $230K. She lived in Jackson County Oregon. The contract that she was holding is being serviced by a mortgage servicing company and needs to be transferred to the heirs. Her will states that all assets are to be split evenly between the 4 heirs. We are just looking for some direction on the next steps that we need to take.
  2. Thanks for the feedback... I understand that is it based on compensation, however, It can also be from 0-2 preceding years. I am just trying to figure out the best way to set this up so it is only made available to employees that have been with the company for a year or more. I am leaning towards $100 in the preceding 2 calendar years which should make people eligible in their 13th month of employment correct? The part that gets me is the "Preceding" term. If I pick 2 preceding years would that mean it would not be until their 3rd calendar year with the company when they would qualify? Sorry for all the questions... I just want to make sure people don't get to participate too soon and also not have to wait more than a year to participate. Also, since they state you can have less stringent but not more stringent rules, can I set it up as 2-preceding years and let employees participate starting with their 13th month of employment?
  3. This may not be the right forum to post this question, however, I thought I would ask anyway. I am setting up a SIMPLE IRA for my small business and am trying to make any employee that has been with the company for at least 1-year eligible for the program. The way the IRS Form 5305 outlines eligibility requirements makes it difficult to set the requirements at a simple 1-year of service requirement. Unless I am interpreting it wrong, it is based on income in the previous 0, 1 or 2 calendar years... so, If I set it at $5000 in 1-calendar year, someone hired on December 1st 2015 making $5000 per month would become eligible as quickly as one month later on 01/01/2016. If I set it to $5000 in 2 preceding calendar years, that same employee would become eligible on 01/01/2017 which is what I would want... the problem is, if that same person was hired on 01/01/2016, they would not become eligible until 01/01/2018 which would be 24-months of service. $5000+ earned in 2016, $5000+ earned in 2017 (2 preceding calendar years), expected to earn $5000+ in 2018 (current calendar year). Am I looking at this wrong? Any other resource recommendations would be appreciated.
  4. Thanks pg1067... I agree with you but the property manager says that they are allowed to collect the rent until re-rented. They said violating a clause in the lease and not correcting the violation when given the opportunity to do so forces the termination but I am still responsible. Maybe this is a loophole to get out of a lease? Just force them to kick you out?
  5. Thanks for the feedback Adjusterjack. A friend of the family that is an attorney looked at the rental agreement and said the landlord does not have a default clause in the agreement so he feels I am not responsible for the rent. I do know that the management company is advertising the house and working on re-renting it but they retained my deposit for this month and said I will need to continue to pay rent until it is re-rented. They did say they would refund any rent paid that overlaps with the new rental agreement.
  6. If I am in a fixed term lease in Oregon and am evicted prior to the end of the lease due to a violation of the rental agreement (unauthorized pet), can the landlord still charge me rent until the property is re-rented? The property has been completely vacated and keys returned due to the termination.
  7. Thanks Jimbo... That is the general consensus of other professionals in the Real Estate industry I have asked. When the principal broker is listing and selling, he will be under no control or supervision of the company. He will be treated the same as any other agent that will be contracted with us as independent contractors. I don't believe the tax preparer or employment attorney I hired are versed in the Real Estate industry... They do a good job in their area of expertise, however, don't fully grasp what a managing principal broker does. If he doesn't list properties or work with buyers to purchase, he will be 100% W2. However, when he has a listing or is representing a buyer, time spent on that will be completely independent.
  8. Thanks for the replies. I understand what everyone is saying about not taking the advise of an attorney and tax professional. That said, I believe both to be opinions that error on the side of caution and I will likely follow suit. The broker is not trying to avoid withholding, he is trying to prevent us from having to pay employer withholdings and worker's comp on his real estate transactions. Every other agent in the firm will be on an independent contractor agreement and receive a 1099 for their commissions. The firm will be paying the principal a small percentage of each agent's commissions for review and offer oversight of their transactions. These small percentages will be paid to the principal via payroll and reported on a W2. Where the 1099 comes in is when he lists and sells real estate on his own. The firm will only take a small portion of his commission and if they have to pay employer withholdings on the amount he receives, it will only leave a very small percentage of profit on his transactions, possibly even be a loss. Just looking for opinions... it seems like this should not be a new concept. We are a small firm with only one agent at this point for the Principal to supervise.
  9. I am working on an agreement to have Principal Broker join our team as the managing principal broker. He would like to be on a 1099 independent contractor agreement, however, he will be responsible for reviewing all real estate transactions for our firm (and receive a commission from each). Based on this, both my tax preparer and my attorney has told me that he needs to be on a W2. They also told me that one person cannot be paid part of their compensation on a W2 and their commissions on a 1099. The Principal Broker said that his tax preparer told him this was allowed. If that is the case, can you share with me the best way to structure it? Essentially, he will be 100% commission, however, I want to make sure that the employment status is correct for the job functions.
  10. That is exactly what we are looking to do. The purpose would be two fold... to move a personally owned property into the LLC and to pay down and refinance that property.
  11. I have an LLC that my Wife and I are the only members. We own 3 properties under the LLC and another 7 properties in our personal name. We are considering selling one of the LLC owned properties and wanted to know if we can use a 1031 exchange to have the LLC purchase one of our personal properties? The goal would be to sell the property to the LLC for fair market value (roughly what we paid for it), return our original down payment to us and obtain a new loan under the LLC at today's low rates. All of the properties and the LLC are based in Oregon.
  12. I have a web startup that I have been developing myself for over two years. I have spent a lot of money on development, research and general operatin expenses. I am looking to bring two people in to assist with development, marketing and general operations. I have an Oregon LLC right now and just one corporate credit card with less than $1000 owed. My question is around the type of agreement to enter into with these two new partners. I want to reward them with equity in the company, however, I need to be protected if they dont work out or deliver upon their promises. They understand that their compensation will only be equity, no cash, however, they will be granted salary positions once the company takes off. Any suggestions on how to best structure an agreement?
  13. We have not closed on the property, however, it is in escrow. It is slated to close by Friday this week. I can afford to pay an attorney to review the documents I have prepared... that's not a problem. It's more of a time issue at this point, however, I am not discounting the importance of council. It sounds like I'm on the right track. I'll call my escrow officer and ask them about recording. As for the trustee... it sounds like my Father can choose anyone he wants to be the trustee, however, my question is the role of the trustee. What involvement do they need to have and when would they be involved? Thanks for the info.
  14. Hello, I have just purchased an 8-unit rental property and my father agreed to loan me 10% of the purchase price at 7.25%, 30 year amortization with a balloon due in 5 years. My primary lender is aware of this loan from my father and approved it as part of their requirements to loan 80%. My question is how to properly setup this loan between my father and I. I spoke to an attorney and he told me I needed a Deed of Trust and a Promissory note. I downloaded both forms and completed them (I got a state specific deed from the Freddie Mac site and a promissory note with balloon payment form from Microsoft Office Templates). I also put together an amortization schedule. I have four questions: 1. On the Deed of Trust there is the Lender, Borrower and the Trustee. Who would we list as the trustee? 2. How do we get these documents recorded and do we need to record both of them? 3. Does my father need to record a lien as well? If so, what form do we use for that? 4. Is this the proper and legal way to do this? Am I missing anything? Thanks for the help!
  15. Hello, I have been investing in residential rental properties for the last five years and have always done my own taxes and management of the business. The properties are all in my wife and I's names with the exception of the most recent purchase, an 8-unit complex, that I put under our newly formed LLC. I have never used a CPA and prefer to take care of everything myself, however, I would like some advice on our current structure and possible changes that we should make. Here is what we currently have setup: We have a registered business name and business licence setup for our own property management company. My wife and I are sole proprietors and the only employees. All tenants make payments to and all bills are paid from our property management checking account. To this date we have not taken any money from that account for personal use, nor have we taken a salary from the business. The below are titled in my wife and I's names and managed by our own property management company: 1 - Single Family Rental 2 - Duplexes 1 - 4-Plex 1 - Townhome (used as a vacation rental part time and a personal vacation home part time, however, it is always available for rental) We recently setup an LLC and purchased the following property under the LLC by obtaining a loan using the LLC (personally guaranteed by my wife and I): 1 - 8-Unit complex This new purchase is the only property not currently being managed by our own management company (we retained the existing manager for now at 6%). I also plan to build a online vacation rental portal business for advertising other people's vacation rentals. My overall question is about structuring this business using the existing LLC and management company. We want to be able to take advantages of the tax write-offs on our personal taxes by filing the business with our personal taxes. I want to make sure we are doing everything to our best advantage, limited liability and legal. Any advice would be greatly appreciated!
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