All Forum Posts by: Alex Hamilton

Trying to purchase property on Acquisition Rehab deal in Louisiana.  Broker is asking for Proof of Funds Letter.  Anyone on BP know of sources uses to obtain such letters?

I'm always asked, "what is the benefit of becoming a member of a non profit association of landlords ?"  My answer is:  If you are using a property management company, it would benefit you more,  if you could report that money you spend for the management of your property as a charitable contribution, and not as a management fee.

The management fee on your income Tax expense schedule decreases your adjusted gross income.  So, when you apply for funding for your real estate business, you show less income and are thus, less qualified for a Loan.  Our property owners that, we manage property in behalf, are able to show member dues to an I.R.S. designated 501 ( C ) 3 Tax Exempt Organization.  The management of their property is a benefit of membership.  Thus, the deduction decreases the amount of Tax due only, not  income reported.

Check out "cause driven" property management at www.hamiltoninvestmentschdo.com or call our Community Housing Development Organization at the number on our Web Site for more details.

Hi Chris

Just read all the suggestions on how you should handle a 7 figure gain on real estate.  I suggest you get out of the way of yourself.  Forget 1031 exchanges, capital gains or Tax at all.  Yes! there is a legal way to benefit from no Capital Gain Tax.  Plus, make money off your 7 figures with Tax free growth of your assets.  You and your heirs you leave your assets  one day should benefit.  Not the I.R.S.

Most people are not motivated to make gifts to a 501 ( C ) (3) tax exempt organization solely for the Tax Free benefits, that is why my associates and I use Charitable Reminder Trust ("CRT's").

Researchers from Boston College estimated that the I.R.S. will Tax $41 Trillion to $135 Trillion in assets of people in your situation Chris.  But, there are other ways in helping Uncle Sam that, few people take advantage of.  With all this money we baby boomers, and older generations will be passing to our younger heirs, and capital gains or current tax laws like they are, take a hard look at a CRT.

With a CRT you dictate the return you want on your investment, as long as it is not under 5% or more than 50%.  You receive income on sales, rentals, new construction, and other growth of the asset that is in Trust, while getting a proven way to reduce your Tax burden, and/or get rid of Tax all together.

Looking for residential properties in East Baton Rouge Parish, and surrounding areas of Louisiana.  Got, a property, don't want to Sale?  Let us manage it on a negotiable fee agreement or let us place Tenants on a simple finders Fee.

I agree with Mr. Enright.  I think Mr Neider is getting Deed In Lieu mixed of with pre foreclosure sales subject to mortgage, cash for keys etc.  Deed in Lieu is a transaction the borrower takes on with the Bank, and there is no dealing for an investor as explained by Enright.

 Tom, are you interested in holding property for passive income or flipping for cash? Now to answer your questions.  First of all, investors I know, to include myself, have a line of credit to work from, which was created by previous flips and/or rental income they have.  These investors hold property for Passive Income or rehab and flip, depending on where the property is, and the amount they have invested in the property.

Second, experienced investors let the Bank have property that is under water, if they can't get a reasonable bid in at a foreclosure sale.  Investors give owners of property that has equity in it;   cash to relocate, and get signed agreements from owners,  to deed the property they have invested in plus, rights to buy the property back at the amount invested plus interest on the money invested.

After investing in a short, your ROI is the difference any ARV, and amount of investment or annual rental income if holding the investment. If the owner buys the pending foreclosure back your profit is the interest on your money invested in the short.

Most investors have more deals than they have the money or time to close on, and would welcome help.

 Kristen, the only "naive" question is the one not asked.  You need to checked out how foreclosures are handled in your area but, the Bank wants money, not the house.  When a owner brings a house current that is in foreclosure, they can sell the house.  You loaned them the money to bring the house current.  Being only an investor and not the mortgage company, you need a way to get your money back plus, a fee for your time and effort.  An example is a house valued at $100,000.  Lets say it takes $50,000 to bring it current with the back payments, court cost and Attorney fees.  You get an agreement to Deed the house to you for $60,000 subject to any outstanding mortgage, if you are not paid that $60,000 in 6 months or so, the house is yours.   If they pay, you made $10,000.  Obviously, you can not do tjhis  with a house that is upside down.  The more the equity the more your pay check is.  If the Laws in in your State will not allow this, dot it were the Law allows.

My Tenants would remove the sign before many people could read such a sign anyway.  The Notice for them to appear in Eviction Court should be enough for a deadbeat.  But, I got a laugh out of the effort to call them out.

This Topic had me confused but, I decided to  report only income my management company gets in management fees as income on my Tax Returns.  I let the owners of the property worry about gross income. Don't use 1099's other than to independent contractors I pay directly.  Anyone know if i'am doing this wrong

There are property managers;  and there are I.R.S. designated 501 ( C ) 3 Tax Exempt associations of Landlords, as we are, who house low and moderate income families, the elderly and disable.

Contact us,  and find out how this unique business model beats traditional management companies.