All Forum Posts by: Ari Newman

Hi, I recommend working with Ashish, https://www.investorfriendlycpa.com 

He is extremely knowledgeable, owns real estate and is a BP member.

Hi, you can find the monthly tax sale list here.  https://www.fultoncountyga.gov/inside-fulton-county/fulton-county-departments/sheriff/tax-sales

Does anyone have experience buying medical debt, or other types of performing or non-performing debt? If so, please send me a PM.

Ari

Hi, send me a PM and I can tell you about the company where I setup my account.

Hi Qin,  we close most of our deals with Blue Title Ink.  The attorney's title work is flawless and she and her team are extremely professional.

@Akay please send me a DM as I might be able to help with this

I had a great experience with Alpha Evictions.  They cleaned out 2 hoarder homes for me last year that were in much worse shape then your pictures. (the houses were torn down).  Send me a PM and I can share their info.

Ari

My tenants approached me about buying the home that they've been living in for a few years.  I have no attachment to the property and can probably do better with my cash elsewhere.  If I were to sell it to them and carry back a note/mortgage (wrapping the 1st), how do I handle the following items?

1.  Taxes - the 1st mortgage on the property doesn't have an escrow account.  When title transfers, I'm guessing the tax payer name would just switch to the new owner?

2. Insurance - Same as above.  Do I switch my insurance policy from a Landlord policy to mortgagee ATIMA ?

3. Reg Z / Dodd Frank - This will be the 1st seller-financed note/mortgage I create for the year.  The buyer will be an owner/occupant

Anything else I need to consider? (aside from risk of Due on Sale)

I'm working on a deal structure and am curious to know if it's possible to get the benefits from an installment sale while still capturing the tax free gains from Sec. 121 ?  The structure:

I want to sell my primary residence to an owner-occupant.  My basis in the property is $200K and the sale price is $300K.  I want to take the tax-free gain from the sale, but my buyer can only put $100K down.  Is there a way to carry a 15-year note for the balance of $200K while still capturing the tax-free gain?  (part of Sec. 121 says that the property must have been your primary residence for 2 out of the last 5 years, so that's where I'm not sure if there's a work-around)

Ari

Thanks all for the feedback.  I realized that I need to clarify a few things.

1.  I worked with a TPA to create a 401K plan for my primary business.  Since we have employees, the company match is caped @ 6% of salary and I can make after-tax contributions that would total the allowed $57K (including Employee elective deferral) for 2020.  I am the trustee of the plan and can invest in real property, notes, etc.  My Employees can only invest in a limited number of securities.

2.  Sooner then later, I will sell this business hence the desire to plan now and create the new entity.

3. Although the new entity may not generate much revenue in Year 1, I would like the ability to continuing making contributions, hence the desire for a Solo 401K vs a Self-Directed IRA. The new business would only have me & possibly my Wife as Employees. (if we take the S-corp route)

The CPA I've worked with for over 10 years is extremely knowledgeable, but knows very little about real estate.  Any recommendations for someone who could work with me to develop a strategy?