All Forum Posts by: Al D.

Looking for a trustworthy “handyman” in Wadsworth, Ohio. Current projects include: (1) Refinishing a wooden deck, (2) refilling a compact sand driveway, and (3) replacing a screen door (that will likely require some door frame work this time.)

Also looking for a trusted plumber-excavator to replace underground sewer line.

Thank you.

@Daniel Ng I worked with them (turnkey purchase in 2016 and subsequent use of their sister company REI Management Services, which recently had a name change to something like "1st Choice Properties.")

I would not recommend them. Feel free to PM me for any info you may need.

@John Alward It’s been over seven months since you said that you started to make money with Renatus. Your thesis was that, to paraphrase, “you get what you put into it.” My thesis before yours was that any company that requires me to put in $20,000 before they share their knowledge with me - and also tells me that I can make money with them by bringing in other paying people - is suspect. I am a skeptic - don’t want to contribute to people becoming victims.

I am still seeing “real estate investor looking for trainee” pirate signs around different towns - no idea whether it’s Renatus.

Are you making money with Renatus by doing real estate deals that you would not do otherwise? Or are you still at the phase of bringing in other students?

Thank you.

@Eamonn McElroy The syndication purchased land, entitled, and is currently building SFRs for sale. There is no leverage - only money from partners and, as sales occur, some of that money gets put back into subsequent construction. During each of these phases, there is supposed to be annual interest paid to each partner. At the end, when all SFRs are sold, there will also be a share in the profit (I presume this would be subject to UBIT.)

So, is the burden to make it clear whether or not the 2018 “income” in this K-1 is subject to UBIT for my SDIRA on the partnership’s CPA/accountant? I can’t imagine that just the fact that the income is over $1,000 - without clearly being UBTI - is enough for my CPA to say that I must file a 990T. I mean, I get the “playing it safe” aspect, but there has got to be a way to tell whether the income is UBTI, which is the second (and indelible) part of necessity for a 990T, as I understand it.

I (my SDIRA) received a K-1 with “current year increase” of $2,749. This is for a real estate syndication. I was not expecting to be hit with UBIT until the end of this partnership, when equity is to be liquidated. For now, it’s supposed to be all interest. But my CPA says that I have to do a 990-T. Could he be correct?

Part II of 1065:

G: Shows me as a “limited partner...”

H: “Domestic partner.”

I1: "IRA"

I2: Checked as a “retirement plan.”

J: All same from beginning to ending.

L: Shows the “current year increase” of $2,749; “tax basis” is checked.

M: “No” is checked.

Part III:

1. $2,749 income.

5. $13 in interest income.

20. “A”; $13

20. “Z”; $2,736

(no other box in Part III is used.)

Supplemental information for the 1065 states:

“CLASSIFICATION OF INCOME AS PASSIVE OR NON PASSIVE AS IT APPLIES TO THE IRC SEC. 1411 NET INVESTMENT INCOME TAX MUST BE DETERMINED FOR EACH INDIVIDUAL PARTNER. PLEASE CONTACT YOUR TAX ADVISOR FOR ASSISTANCE WITH THIS CLASSIFICATION.”

Of potential additional interest may be a note in Form 568:

“LINE 20C - COLUMN D

OTHER INFORMATION

PROPORTIONATE INT. OF AGGREGATE GROSS RECEIPTS..............................$ 24,708.

TOTAL $ 24,708.”

Any professional help is appreciated.

@Michael Williams I don’t know what specific area of the city you are talking about and at what time. But I can certainly see a case for this. Some areas are hotter than others. Marketing does make a huge difference, especially if that “marketing” includes a promise of a better future for the larger neighborhood and soon, which a company rehabbing a bunch of inventory in a small area can make... as well as a potentially a lower price to the local comps in these newly-rehabbed units.

My plan was to at least keep the previous price, which was market-rate. After four months of little to no interest, the PM and I agreed to lower the price, as well as tenant qualification standards. (I imagine that some may like to tell me here that my original price was too high - not the point of this post. But: certainly not high, according to my PM, whom I asked for that assessment more than once during the vacancy, even after the first discount.) Notwithstanding that assessment, the day I asked my PM to lower the price again, was when the PM found a new tenant. I think that an argument can be made that it could have been rented a lot sooner - and for more money than in the end - had at least the garbage been removed before a prospect looked at the place. We’ll never know.

Now that I learned that my PM had allowed the garbage to remain inside for months, I have to wonder whether the whole statement about how it never stopped a new tenant before is just another one of his numerous excuses. I’d really like to know who, in this thread so far, besides the first two commenters, would agree with that specific quote of his I provided.

@Derrick Craig What is the “this” that you try to explain to some of your investors/owners that some understand? I like to learn from the best.

@Caleb Heimsoth Believe me, I’ve asked about five PMs over a span of time. Not one has said they wouldn’t take care of the place because of its address - they want my business, some are just not “excited” about why they would be yet another manager of mine in Memphis. Naturally, I’d like to make sure that the problem is really not with me/my expectations.

@Caleb Heimsoth Messick Buntyn/Orange Mound, just south of Southern Ave. But would it really matter if it were D class? We are talking about cleaning after the last tenant - not getting it “ready for a burglary” while it’s vacant.

@Caleb Heimsoth “Tolerate” is a great word, Caleb. I agree with you; I should not tolerate this type of practice from a professional service.

I just learned about this practice yesterday, immediately inquired about it, and got the quoted reply today. I am just trying to confirm that my expectations are not unreasonable, specific to C class in Memphis - there is always a chance I could be wrong in my expectations.

In C class properties in Memphis, do you/your local PM clean the vacant property after the previous tenant moves out - before you ever show it to a prospective tenant? Or do you show it to prospective tenants before you clean it (with used furniture, garbage bags, smells, and overall suggestion that the landlord may not give a damn about the upkeep by any tenant?) (“Neglect begets neglect” is my concern here, never mind the property sitting vacant for longer.)

I just learned that my local PM does the latter. I saw the video from yesterday. To be clear: I was not surprised about the state of the property - only that it had been on the rental market for over 4 months (!) in the condition the previous tenant left it in. I could understand a week - if there was high demand to view the property as soon as it became vacant. Was not the case here.

And, after bringing up my (above) concerns to my PM, he explained that in his years of local experience, this practice has “...never stoped people from renting the properties, they all rented in the same amount of time based on the criteria each tenant/landlord was looking for.”

My previous PM there cleaned before potential tenants would see the property. Any thoughts on my concern from the local-knowledge people? (I also own in a few other markets - no such practice there.)

Thank you.