All Forum Posts by: Ray Slack

Hello all my PA genius investors! 

Need some advice.  I purchased a property at Luzerne County PA upset sale and I know I'm responsible for liens/mortgages ect. 

My question is this.. there is a PA commonwealth lien from 2008 against the prior owner for Cigarettes' tax.. (I assume he owned a convenience store or something)  for $7,000. 

The property sold (to me) at the upset sale for $17,000 The Taxes and costs due to the county were about $5,000 leaving funds to payoff the $7,000 lein on the prior owner. 

My question is will the excess funds go towards paying off the Commonweath lein? or will those funds go to the prior owner and I would still be responsible for paying off the lien. ? 

If I am still responsible for the lein any tips or advice on the ability to negotiate the 12 years interest they are probably going to want to charge on the lein? 

Thanks for any input

Ray

I use zillow rental manager.. It has some quirks but overall I'm happy with it.. Just wish you could adjust a few things like the date the "RENT IS LATE" email goes out..   Rent is due on the 1st and the email is sent out on the 2nd.. Would prefer to be able to send it out on the 6th since a late fee isn't accessed until the 6th and most people pay on the 3rd through 5th.

I'm looking at buying a first mortgage foreclosure in Luzerne county PA.. Does anyone know if back HOA fees are wiped out by a first mortgage foreclosure purchased by a 3rd party (me)

Question on a luzerne county upset tax sale property.. Does a PPL electric bill attach to the property and covey to the purchase at an upset tax sale? 

One of the properties I'm looking at doesn't have any mortgages but when I was at the house there was a shut off notice from PPL that said they would turn the power back on if you paid a $14 reconnection charge and the prior electric bill of $10,604! 

Ouch..   Would I as a upset purchaser be responisble for a PPL bill? 

I just bought a campground/RV park in the poconos.. 

You don't need someone in the same state.. Location doesn't really matter.. I just finished up a 1031 and used @Dave Foster as the QI ..This also was my first exchange. Found him and his firm to be very knowledgeable and helpful.. I had lots of questions and they answered them all.. Also, found him easy to reach by phone whenever I had a question. I would recommend him 100%.

The process is pretty easy, just pay attention to your dates. 45 days to identify..  The hardest part of the whole thing is trying to find replacement properties at a reasonable price in this market.

Ray Slack

If she is Hot you can't evict her

I know you're not going to like this answer but you may need to speak with a good CPA.  Also, some rough numbers would help. 

One idea to run by a CPA .. Let's say you have 5 lots and you were selling them for $150k each..  and your development costs for those was $100k.. You want to ask if you could 1031 4 of the lots and then deduct the entire $100k development costs off the 5th lot. Thereby only have $50k in taxable gain... (Numbers are of course made up since you didn't supply any)

The rents in bowie have risen over the last 2 years. I would raise the rent slightly.. Maybe 3% if they sign a new lease.. What type of property is it? 1960s levitt built single family? Townhouse? Newer home? I have 20 rental properties in Bowie and know the market rents well. If you want to PM me with your property details, I'll tell you what you should/could be getting for rent in this market.

Question about Zac's Example above. 

Let's say he sells his rental property for $500k and executes a 1031 and buys the property he already owns 1/2 of the LLC for $500k.

Technically he would be giving his partner $250k and himself $250k when he purchases the replacement property from the LLC.

But he would be sheltering the entire $500k from the sale of the rental right?   Not just the $250k he is giving his partner.