All Forum Posts by: Shari Posey

I'm a licensed salesperson (don't have a brokers' license) and I manage our rental properties. Would I be able to have an S Corp because of the rental business? I used to have an S Corp but ended it in 2009. I'm wondering if I could utilize that again to lower my taxes. Currently I'm Schedule C and our rental income is personal income. 

I'm disappointed in Dwolla closing down because it was a bit of a pain to get all my tenants on that system. I'm looking into Cozy now. I can't find anything on the site that explains the fee system. How much does it cost per rent deposit? It appears it's free from the tenant's side but is there a cost on the landlord side? Also, how difficult is it to have the tenant set up with their bank account?

I have used a CPA in the past when I had 2 S Corps but when I closed them I started doing taxes my self with good old Turbo Tax. I am pretty sure I take all the deductions I'm due and I've vehicles such as as solo 401K, self-directed IRA, Roth, etc. but I think I might be missing out on larger-picture strategies for investing and tax savings. What I dislike about the three CPAs I have used in the past is that they charge by the form (my taxes involve a lot of forms!) and they sit across the desk and plug the numbers I give them into a computer program...just like Turbo Tax. I'm looking for something more like consulting. Does anyone in LA/OC or SoCal have a recommendation for a strategic CPA with real estate investing experience?

Along the same lines, I have a friend (unit owner) who lost the keys to his rental unit. The tenant won't give him the keys to make a new copy. I assume my friend can just install new locks (keyless would be great) and give the tenants new copies or the code, correct? I have helped him research laws regarding landlords and keys but haven't actually found the answer to this question. (The owner also lost his copy of the lease so he can't refer to it.) 

I'm sending positive thoughts to you! You have us all on pins and needles.

It's a short sale--seller has no money to rent back. He does not want to pay for a rent back.

Contract says seller out at close of escrow, which is normal. All of a sudden he needs/wants almost 2 free weeks after close to move. Seller is not going to move out early, that's for sure. 

Agents are not going to hold back commissions. Why would they? If the seller never moves out, it's not the agents' faults.

My original question was...Does a seller have to be formally evicted if he doesn't move out at close of escrow and I have discovered the answer is YES, just like a tenant. It's insane but that's the law. (I love the idea of the buyers just moving in with their kids and a bunch of noisy toys until the seller leaves on his own.)

Now my question is, even if the seller says he will move on the day it closes, how can the buyer be certain he will and he's not lying? I have always known a contract is only as good as the people who sign it, but now it hits home. (CA contracts typically have seller leaving by 6 p.m. the day of closing or sometimes CA buyers actually let seller stay up to 3 days free. That's the way the contracts are written.)

 Can you explain this? What is MSJ? What is not worth the cost...moving forward?

Buyer is a young family with kids and wants to live in the house.  Seller has signed everything necessary and it's in escrow. In fact, everything was going smoothly until the seller just said he wants to stay 15 days after close to "give him time to move" and he put suggested prices on various personal items for sale to the amount of $5k or else he might just cancel the deal and stay in the house living for free. That's why I am asking about worse case scenario if a SELLER doesn't leave like he is supposed to and/or how to structure an agreement that makes sure he's out prior to closing now that this issue has come up at the 11th hour. Like I said, I've done a lot of transactions and never had this particular issue. In some ways it seems like a worse situation than a tenant because an owner of a short sale doesn't care about eviction since his credit is shot already.

It's a short sale so seller has no money--nothing to hold back.

Typically the walk through is done 5-3 days prior to closing, so usually there is still furniture, etc. in the house.

Escrow offices function as a paper pusher--the don't force either party to comply with the contract, they just move paper around and follow directions of each party according to the contract. They are a neutral party. 

There are no attorneys involved in sales--it's all done between real estate agents. Not until there is a problem do you bring in attorneys, and principles usually sign arbitration agreements in the offer anyway that prevent anything more than small claims court.

In our area, escrow doesn't handle the keys. Seller and buyer don't meet in an office for a key exchange. The keys put in a lockbox on the property or the listing agent has them and hands them over at 6 p.m. the day it closes.

Oddly, it's common here to give the seller 3 extra "free" days after close of escrow to vacate the property. For all the lawsuits we have in California, I am shocked we do it the way we do.