All Forum Posts by: Robert Hetsler

@Dave Foster is correct, I would suggest that the check is made out to the escrow company and not your own name if you have that ability and have them deposit  it in your escrow company so you are sure that the amount paid is actually there and was not written on closed account nor written on a check that a stop payment can be issued so ensuring the check is deposited, not into your account or an account to which you have what could be construed as constructive receipt, is important to ensure that the deposit check is actually a good check and that the Buyer has "skin" in the game!

Sorry, I just realized that @Dave Foster was not replying as it was actually @Natalie Kolodij and she is correct.

I have to figure out a way to gain the celebrity status @Dave Foster enjoys as he is certainly well respected in this Forum and it is well deserved for sure.  I was fortunate enough to meet Dave and his Wife and if you have ever met him in person, it is easy to see why he is so well received.  He is one big dude! 

All joking aside, he is extremely knowledgeable and I have found that he provides consistent and very detailed responses.  He is very generous with his time and I believe that is why we all want to be like him when we grow up!  @Dave Foster you there?

Hey Brett, let me ask you this, when you say "local renter roommates" does that mean that you intend to reside there but also have individuals/tenants living in the place with you?  The reason I ask is because I agree with @Natalie Kolodij  and @Dave Foster but if you are going to reside in a portion of the property, just make sure you have a solid methodology for arriving at the allocation of investment property compared to non investment property which could easily be a square footage calculation etc..  You just need some method to your madness and you also must be consistent going forward with respect to calculation of depreciation, interest expense if there is a mortgage (a portion could be an itemized expense on schedule A and the other could be a business expense on schedule E). 

Additionally, remember that the taxpayer receives the benefit of the exchange so the seller, which could be you personally, an LLC, a Corp etc.., must also be the purchaser of the replacement property. The one quazi exception is if you owned the Denver property individually now but wanted to add a layer of asset protection, you could take title to the replacement property in an LLC as long as it is filed as a disregarded entity such that you would not secure an EIN specifically for the LLC and would continue to utilize your social security number. I think it is form 8832 but you can easily confirm at www.irs.gov.

This is the only opportunity to engage in a name change while doing an exchange because the taxpayer's name is changing but the EIN, better known as the number the IRS scrutinizes, is the same. An alternative way to accomplish similar results, in case you are financing the property, and the lender is not a fan of the LLC idea, is to simply purchase more liability insurance or an umbrella policy. Further, I would require the tenants to carry renter's insurance because I have seen even the best of friends change when money entered the picture. Make sure to have them sign a lease that includes them to provide a declaration page naming, you/legal entity owner, as an additional insured. I have found that it is always best to hope for the best but plan for the worst!

However, @Dave Foster has a great point, why give up the great cash flow as it sounds like leveraging the property might generate more overall income.

I had to take a trip to Orlando unexpectedly but I have emailed him and left him a message.  I will get a better deal for you. sit tight 

Great.  Also, I own a roll off container company and he is my partner in that business as well so you should be able to save a few bucks there as well.

I just received this but I will email you a spreadsheet now

Call Brian Vick.  he is the owner of Stone Bridge Constructions services and I have been friends with him since 1st grade.  He runs a tight ship over there and he is very well respected in town.  I use him on all my projects.  If you utilize my name, I am sure he would provide a discount and if not, email me back and I will make it happen for you.  Hhe is the owner but has around 40 employees.  If you cannot find the number, email me separately as they will not allow me to put individual phone numbers in a response post

yes they are as I have received so many inquiries but I have not responded to any of them because I have had a major closing, for me anyway, that has consumed me and today finally we set a firm closing date for next week.  As such, I am just coming up for air.  I am not 100% sure but I believe one of the tenants at the Debary street property in Orange park, in the spreadsheet reported monthly income of 800 but since that time I have changed tenants and the new tenant is paying $850 per month.  But yes, they are all rented and I would like to sell them as I am exclusively focusing on commercial as residential is of no interest to me quite honestly.  Let me know if you have any additional questions

yes call www.wastecontainerrentals.com.  I own 40% of the company so ask for Danielle and use my name and they should take care of you.

That is fine.  I am happy to spend some time with you.  I have a few transactions going on so if you could give me till the latter part of the week, that would be best.