Small Business: Industry: Real estate
How to get capital when you are your partner disagree on the risks.
C. Miranda, Urban Revitalizers, Boston
I am a partner in a small, certified minority business, and have been managing it for the past 10 years. My firm has just won a statewide contract to conduct assessments of real estate throughout the state. It is our first large contract, and it requires some start-up capital. I have applied for several business loans to carry us through until our first pay-down. The problem is that my business partner of 10 years is not willing to sign, saying that she wants to be able to continue to pay the bills if everything fails. I have used all of my credit cards to get us part of the way there, but still need more capital. My credit score is high. Can someone tell me how I can get over this hurdle?
Bernard, Cape Town, Conn.
I want to start an umbrella group of about 20 real estate agencies. This group will grow in numbers. The name of the umbrella entity will be used for Website and advertising purposes, with a goal of becoming the fastest-growing real estate networking group. Can you please explain the best option for registering the umbrella group?
Kelly, Eugene, Ore.
I'd like to start a real-estate investment business. I don't want to fund it with my own credit/name. I'd like an LLC or S-corp. I started an LLC in 2003, but let it expire. I can renew it for $250 or start a new one for about $50. Would it be worth the extra money to renew? Would I have a better chance in getting funding from a lender since the start date was five years ago?
Active advice on the tax implications of passive income.
Troy L. Whitaker, Los Angeles
I earn over $100,000 a year. Does that mean I can’t deduct my rental properties’ mortgage interest? As I understand it, I can only deduct it from the income I make off my renter. Is that correct? Read more…
LLCs shield their members from legal claims, but the company itself still carries liability risks.
Angela J. Thomas, ATM Investments, Baton Rouge, Louisiana
I am just starting out in the investment world and am still a bit green in understanding certain things. I purchased two investment properties in 2004 and am renting them out. This year, I created an investment LLC for them. My questions is, although I have the LLC with its “limited liability,” do I still have to put insurance on the company?
A reader looks to gain exposure for her online real estate business.
Yvette Brown, New Start Concepts Management, Bronx, N.Y.
I started a small business that raffles houses online. How can I get exposure for the Web site? Read more…
Ask FSB's tips for reassuring customers in a jittery home-building market.
Gloria Jarvis, St. Louis
My husband and I own a small real-estate development and home-building business. We focus on high-end, green construction in a new subdivision in a high-demand area, and we have little competition. Our customers are not affected by the current credit crunch. Our build time is 16-18 months, which reassures our buyers that they have some time for the market to recover to sell their existing home. Yet our customers are scared to buy because they hear that every builder is going bankrupt! In our case, this just isn't true. We recently signed with a joint-venture concern that ensures our surviving the housing crisis. I am sure there are many small and medium-sized builders/remodelers that are experiencing market resistance now, but we are not in that category. How can I convince our prospective buyers that we are not going broke – short of showing my balance sheet? Suggestions? Read more…
You can do it – but the financial costs may be steep.
Martin Woomer, Silverdale, Wash.
I am thinking of buying a rental property that I may live in for a while. How do I transfer the title from my person to my business (I'm a sole proprietor)? Or is it better for my business to buy it, then have me rent it? Any suggestions? Thanks.
Andreas wants to move three properties to an LLC. Have you recently transferred properties into your business? What procedure did you follow? Fill us in.
Ginny asked if she needs a business license to conduct seminars outside her full-time job. Does Ginny's situation cross ethical lines?
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