All Forum Posts by: David C.

I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...

 I second that.

I remember back in 2008 time frame having a hard time selling a SFR here in SoCal. Obama's FTHB came along and it sold in short order, full price. I always felt it was due to the bump in demand created by the tax credit. Who paid for my windfall, not sure, increased national debt perhaps.

If you get a loan, isn't your privacy blown when you sign the deed of trust? ... Presumably as manager of the LLC that is trustee of the land trust.

 Joe,

Do you use a Statutory trust to get asset protection or a simple land trust?

Also, without saying exactly, who do you use as trustee ... Anderson, a trusted individual, your corp/llc?

@Tina Lee

The reason you can't find a box to check on form 590 is because you are not a California resident. Withholding would be required even if there was no trust or LLC involved. Withholding is not for the $800 FTB fee, it's for non-resident income. If title was held in your personal name this would still be happening. Take a look at the instructions for completing form 590, this will give you more insight.

California wants to make sure you pay taxes on income generated in CA. They know you likely wouldn’t file a CA tax return - since you live out of state - so they found a way to make sure you do.

Since you are losing money, most likely you can deduct losses against income and get the withholding back when you file a CA tax return in April.

Confirm this with your tax person.

The QBO class tracking feature, found in the more expensive Plus and Advanced versions, is used by many investors. I’m wondering if using Customer instead of Class would work, thereby allowing the less expensive Simple Start or Essentials versions to be used.

As a private lender I’ve been using Customer for borrower and Job for each borrower loan … seems to work. I’m able to get a P&L by borrower/loan, among other reports. Perhaps a property investor could use Customer for each property.

I’m sure there are many QBO aficionados out there that have thought about this, what do you think?

Good points @Anthony

I think it will have a significant effect, for the better.

As a private lender for years, I've seen many flippers use unlicensed workers and fail to pull permits. As a matter of fact, I had a discussion with a flipper a few weeks ago that brought this new reg to my attention, he was considering getting out of the business realizing that now he would have to comply, and that it would substantially hurt his bottom line.

For me, as a conservative leader, I see it as a positive. Rarely do I lend rehab money, 1st position purchase money only. Why, because of the extra work on my part to administer the hold backs, draws, inspections, etc.

Now I can offer rehab money if they are willing to accept a third-party funds control company. I could always do this but now there is an additional incentive … compliance with AB-968. This would reduce the chances of overrunning their budget, verify work before the next draw and verify permits. Good for me, the flipper and the buyer. That’s my thought, we’ll see how it works out.

Sorry to hear about your difficulties.

I'm in their concierge service so get in a little faster.

Not sure what affordable is since every case is different.  From a cost perspective imo it's most cost efficient to find somebody with a lot of evection experience in your area.

You might try Stelnick Law in Valencia .  They did a good job for us in a difficult eviction.  They practice in los angeles even though they are in Valencia.

I've used Dennis Block for years, has always done a good job for me.  

AB1482 says:
“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

I'm not a trust expert but I'm pretty sure a land trust is not a real estate investment trust (REIT), and I'm assuming your LLC is not owned by a corporation ... therefore it's exempt.