All Forum Posts by: Brandon Turner

Well, they LOVED the house. It was suppose to be a "flip" but didn't sell during the summer so I rented it. Bad idea. But it looked nice so they apparently didn't mind the double deposit.

And yes, everyone I deal with seems to have no money also. I thought it was just my crappy town :)

Hey Dave. I set up the LLC's because they do provide some asset protection, or so i thought. They don't? I think I read it in a book somewhere, but you never can be too sure.

Obviously I want to avoid paying taxes as much as possible, especially the SE Tax. Suggestions?

I think I need to see a tax lawyer or accountant soon anyways. The question I posted is slightly theoretical, since I have not actually purchased the apartment yet. So, I'll make sure to find out for sure before I do. Thanks!

Thanks guys. Yeah, 4 in a row sucks. However, I did enforce a late fee each time ($65 each time). Apparently they don't mind paying a late fee. Maybe I'm cheaper than the cash-advance places.

I've issued the 3-day notice in person last time, but that is a lot of stress, and also - i don't like stress. And frankly, $65 a month isn't worth the stress.

They only signed a 6 month lease, so I only have 2 more with them and I will not be renewing it. So I guess, I might as well collect as much of those nice late fees as possible.

Biggest mistake on my end - I shouldn't have rented it to them in the first place. I had a bad feeling, but got nervous about not finding someone. I did, however, get a double security deposit from them so I have $1300 to make sure they don't screw me too bad.

Any more feedback would be great.

I have some tenants who have not paid. They have a 5 day grace period, and that ends today. Just wondering what you other landlords do at this point? Call them, ask them where the money is? listen to the sob story? Or just post the 3-day notice and not even talk to them unless they call? This really is the most annoying part of my landlord job, so if I can just have someone post the notice, it might make this easier.

This is not just the first time either. I've had to call, go over there, make special arrangements, etc for 4 months in a row now.

Thoughts?

Any tax pro's out there?

If I own a LLC that owns an apartment building, do I have to pay self employment taxes on the cashflow each month? I know normally passive income does not get taxed with self employment, but if I don't technically own the apartment (I own the LLC that owns it), is it still passive income?

Also, to throw another wrench in, I have a separate LLC set up to manage the LLC that owns the building. Both are taxed as a "sole prop".

Any thoughts? Thanks

brandon

I have a question about using seller financing and then taking the property back and re-selling them using seller financing again. When you do this - do you have to pay Excise tax every time you sell again? So if you sold using seller financing, took it back, sold it, took it back, etc for a number of times, that would really add up for excise tax.

Any help or insight would be awesome.

Thanks

Brandon

Hey guys. I will post this message in another forum as well but I thought you might know -

Frank- you mentioned selling properties using seller financing and then taking them back and (I assume) re-selling them using seller financing again. When you do this - do you have to pay Excise tax every time you sell again? So if you sold using seller financing, took it back, sold it, took it back, etc for a number of times, that would really add up for excise tax.

I know every state is different.

The reason i'm asking is because I'm buying an apartment from a friend, and he sold it several years ago using seller financing and paid the excise tax. Now, he just took back the apartment in foreclosure, (did not have to pay excise to take it back). However, if he sells it to me, it will be close to 8,000 in excise tax, which would require me to pay 8,000 more for a down payment (that's the deal we have worked out, since I am buying it with very little down. I'm only paying enough down payment to cover his costs, like the back taxes, closing costs, etc).

Would it be better for me to instead use a triple net lease option, and thus not take title yet to save some cash?

Thanks!

I am looking at the "for rent" section in the paper at various aparments in the area, lots are giving "move in incentives" like free rent, discounts, etc.

So I am thinking of offering Free Nintendo Wii's with any 1 year lease signed for the apartment I own. They only cost $200 and I think its kind of quirky, funny, but might work and help the ad stand out a bit.

Just an idea I had. Any thoughts? Anyone done something like this? Am I just asking for the wrong type of tenant?

Thanks, yes I will definitely be doing lots of curb appeal. I hope to go drive around some nice/trendy neighborhoods in some big cities nearby like Seattle or Portland and take tons of pictures to get ideas.

Any good marketing ideas?

Hey everyone. I have been working on a deal to purchase a 24-unit apartment complex for the past year, and it is finally happening. One problem though - the apartment is currently 40% vacant (mostly due to the run-down condition it has fallen to, but the poor economy, poor previous marketing, and being only a decent location are also factors)

So I thought I would generate a discussion here so people could share their ideas on decreasing vacancies. Marketing ideas, promotions, concessions, etc.

I have looked a bit at banners online, to replace the current 8x11 inch red and white 'for rent' sign. Anyone have experience with this?

Thanks everyone.