All Forum Posts by: Catherine Javier

Quote from @Matt Lyons:

My opinion is ABSOLUTELY! (please keep in mind that I am NOT an accountant and do not work for the IRS) The day is full of 24 hours and ANY Real Estate activity works toward the 750 hours and regardless of how many you CURRENTLY own she can be be putting in TONS of hours to BUILD that portfolio.

If she tracks what she spends her Real Estate time, and Real Estate is her true passion, you will be surprised as to how much time she spends on Real Estate activity...how much time (door to door) does she spend driving to see places, driving neighborhoods in different markets she is in, reading Real Estate investing articles/books, trolling zillow and realtor, talking with other Real Estate people, talking with property owners, listening to podcasts and so forth... Real Estate investing and being a real estate professional is not a career that you punch a clock, but if you track your time most of us quickly see we spend a TON of time on real estate and that counts!

Every week has 168 hours.... she spends 36 at her job...so she has 132 hours left...how she spends those 132 hours is HER business and something no one on the planet can prove, the world cannot make ASSUMPTIONS and apply them to a specific person...she might sleep 14 hours a day or 2 hours a day

Thanks for your input @matt
Are you also doing this, being a real estate professional? 
i am watching some youtube video “realestateCPA” and what they lectured is that Education hours , Research, seminars, reading books, listening to podcast do not count. Although they Travel time is still on the gray area… 
I am still trying to do mo research about it.

Quote from @Jeff Copeland:

A couple of thoughts:

1. It's going to be difficult to meet the IRS requirements owning only a single property (unless it's a large apartment complex). 

2. 750 hours is a minimum, but material participation in your real estate holdings also has to be her primary job. Just pointing out that if she works 900 hours (or whatever number) as a nurse, she has to document 901 on real estate. 

Here is the best guide I've found on the subject of achieving and documenting REPS status: https://www.therealestatecpa.c... (I have no affiliation with them, not self promoting). 

Thank you so much for your response! And yes I was watching the youtube videos of these CPA’s.

If this is the case, we cannot qualify as real estate professionals, we cannot also qualify as active investors since we exceed the gross if filing jointly. What if we file separately, and if she does not exceed >150k gross, can my spouse take the max 25k deductions? 

Thank you for your thoughts!

Quote from @Snehann Kapnadak:

@David M.@Account Closed

Thanks all for the replies! Basically I'm trying to model out the prepayment costs a the time of ReFI with an IF-THEN statement. I'll have the ReFi loan amount. So IF the prepayment penalty is based on Yield Maintenance, then the Total Prepayment Penalty = the Loan Amount x the [5%-4%-3%-2%-1%] of the year I ReFi? So 5% if I ReFi in Year 1, 4% in Year 2, etc.

Do I have that correct? I know it's hard to visualize on this forum. I appreciate the help.

Hi, Newbie here. Is this a DSCR loan? I want to ask your opinion on this. I have the same prepayment Penalty of 5,4, 3, 2, 1. Any idea if I refinance the loan, can the prepayment penalty percentage be written off or can be deducted in tax?

Thank you so much

Good day everyone! Newbie here, trying to explore being a Real Estate Professional.

My spouse and I recently closed on a rental property in FL, it needs rehab. Both of us are Travel Nurses. My spouse just finished her contact and will be going back to FL to manage the contractors and buy new appliances while I stay in WA and continue being a Travel RN.

My question is, if she will work on a contract position (36 hours a week) and maybe do it for 3-4 mos, can she qualify as a Real Estate Professional if she's work 36 hrs a week, and say she will successfully satisfy the statutory test  (>750 hrs  &  > 50 % of her time)

Thank you so much!

Good day Everyone!

Newbie here asking for your recommendations. We purchased a 3/2.5 town home in Altamonte Springs (near Orlando FL). We will be closing this week and we will rehab: change roof, repair the leak in the windows, water heater, update bathroom and kitchen, and probably the floors (if we have enough budget).

Thank you so much for your help in advance!

Thanks @Zachary Inman!

Hello BP!

Newbie here, asking for help.. I am from FL, my spouse and I started an LLC (partnership) and last Sep 2021, and the LLC is 50% for each member. We were able to close on a Townhome last week and of course we want it to be in our LLC.

We made a decision to do a DSCR loan and our lender asks us to redo the percentage of membership on the operating agreement. My spouse will have 85% (since her mid credit score is higher than mine) and mine as 15%. I have been searching but I might be typing incorrect information. How do we Change the percentage of membership in Operating Agreement? Do we go to Sunbiz or just make another operating agreement? I am not really sure how it works.

Thank you in advance!

@Steve K. & @Chris Pasternak & @David Avery,

Thank you so much for your wise opinion, this will definitely help us on hpw we will proceed!!!

@Chris Pasternak 2 condos which fell off contract due to HOA, 1 duplex that got away who has higher bid :(

Thanks @David Avery, I am going to share the photos here… so others can learn too.. you’re a big help.. 

FYI everyone, this is not a wonderful sight…..