All Forum Posts by: Bill B.

I MIGHT offer a 1-2% discount if an equal amount was included with the offer as a non-refundable earnest deposit. 

That’s why I use so many spelling errors in my posts so people know it’s me and not a bot. Yeah, that’s the ticket. 

Usually when buyers “walk away with a check”. It’s because they close on the 2nd or 3rd of the month. So they get handed all the rent collected for that month. especially true on larger building. Or owner occupied 3-5% down house hacks on four plexes with high rents. 

Did you ask seller for a copy of their current policy?

I assume they would have a current price and desire to write you a policy for the one they are losing. 

Ps. Try higher deductibles. It should be at least $2,500-$5,000 because you should NEVER make a claim for less than $10,000. 

1) I see they accepted an offer. 

2) For the first time ever (in my 25 years of Vegas investing at least.) I was just told a property less than 5 miles from the 215 loop around Vegas was uninsurable by Allstate because of fire risk. I thought he was kidding. It’s in a community of 100+ homes right off Charleston on the way to red rock loop. 5 miles to red rock casino and 15 miles to the strip. 

Your cashflow is better because you’re not paying rent. (Unless you’re living for free with friends/family.) 

For partners or for “pretend land”  you have to pay fair market rent in to the property’s account. Then you can do the math if you own it solo, or you can split the profits if you have a partner. You can’t live there for free and then split the left overs.  You can’t even take 1/3rd of the rent plus live free  that would give you one guaranteed tenant every month and one unknown, while the other person has two unknown. Even if the partner moved in to one of the remaining units.  You should split the income/expenses for the building after you each paid fair market rent, not each take one unit  

Good luck  

You aren’t losing the 1031 because of the tic. You’re losing the 1031 because it’s your primwry home< not an investment property. That SHOULD be better, at least for you. Your portion should be completely tax free. Up to $250k if single. Not sure how the IRS treats primwry homes owned by multiple people who a rent all treating it as their primary. I GUESS! If they are charging you fair market rent for their portion MAYBE they could do a 1031? But remember. Thsi can’t be a flip. Those also don’t qualify for a 1031. 

If they trusted you I would have bought it a just your primary and had them loan you money for interest or interest okay portion of profit at sale?

Anyway…enough of my guesses. You’ll need an expert like @Dave Foster in regards to the 1031 portion. And maybe another expert like @Michael Plaks or your own CPA in regards to the IRS/tax portion. 
. 
good luck. 

The real problem is the client is 100X more likely to do something personally that gets the, sued and they lose the property, than the property itself is. Secondly, what could happen at the property that isn't also the client's fault? Tree falls and kills person, it should have been trimmed. Who's responsible? The client and the LLC. So they both get sued.

It's been asked her 100+ times to the general BP audience. With 1,000's (10,000's?) of members owning 10's of thousands (100's of thousands?) of SFR and small multi. Has any one EVER been saved by an LLC in the case of a lawsuit where insurance didn't cover the loss. No one, not one, has ever come forward with their case.

Buy an umbrella policy for a few hundred $’s that you need anyway, and save the expenses and time suck of the entities. 

A Reverse mortgage does all those things for her. 

Make sure she has a professional elderly rights advocate before you even think about signing any legal agreements, especially in New York, especially in regards to her giving a neighbor $1M. 

You can have all the best intentions. But as you hinted at. It’s not going to look good. She does have an heir, even if it’s not a close one that will wonder why they didn’t get the $1M property eventually. Especially as it goes through probate. You’re going to want to show that you paid at least close to market value if not very close. And not at 1 or 2% interest seller financing. A deal you’d be happy your mom signed with a neighbor about selling their house. That’s probably the gold standard you should set. A deal you’d be ok with your mom signing. Where you don’t get a $1M property. Good luck. Be careful. 

You sure their outdoor freezer didn’t blow a breaker? 
Tell them to make a claim with their renters insurance?

Is this hunting meat or $1,600 worth of steaks?

Have the electrician look at it when he’s there?

I doubt legally it’s your responsibility as long as you fix it within a few days. Imagine if it happened at your house, would you hold someone else responsible?

Another unsung benefit of having a PM. They would/should have a solid idea of who’s’ responsible and the tenant may well not even have asked them. (People tend to push non-pm landlords much harder than PMs.)  If they did the PM would then explain to you what your responsibilities are and what proof to require. 

Let us know what you decide/do.