All Forum Posts by: Jason Zundel

@Eric Amundson OOF, sounds like a story/history there, and sorry to hear you went through that.  Very understandable, and under the circumstances it doesn't sound like the installment sale will be your best bet.  I also 100% agree with What @Ashish Acharya said, and appreciate his level of detail (especially the key considerations and need for careful planning/experienced professionals)!  If we are shifting back to the 1031 option, then our firm has had good success and regularly refers clients to Deferred - https://www.deferred.com/partner/anderson - for a great option when it comes to a qualified intermediary.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Unfortunately...I couldn't agree more with @Mike Grudzien.  Even better, this type of transaction is more specific and niche than my firm offers, so it isn't even selfish to agree with.  You will just be in a much safer position by doing so!

Gary: There are quite a few different options here, and you can get pretty creative. You can split up equity through an LLC. You can enter a joint venture agreement to split sale/rent income. You can simply accept funds in the form of a loan. Etc, etc, etc. My two cents is that you have more simplicity and the capital partner is better protected by utilizing that last one - the loan option. That way you maintain full control, they are guaranteed a repayment, and there are far fewer ways for things to go wrong. Partnership disputes have a way of really coming back to bite you. To be fair, that does put more of the risk on you to perform, as the loan has got to be paid, regardless of the success of the rehab and rent deal.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Happy to help!  Yes, a structured sale is an alternative to a 1031, but it does not generally involve an exchange. Rather, you will have a third party professional facilitate the purchase, the buyer will pay to the third party, and then the third party will purchase an annuity reflecting the price, which is paid to you over a set time.  Thus, the capital gains are not avoid and the basis isn't reset, but you pay the capital gains over time rather than in a lump sum manner.  PLEASE be sure to use a reputable, professional team to manage the structured sale if you go this route, as simply loans/payments over time will generally not suffice.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

In my experience, no - with the (not so recent) changes, a 1031 exchange is only done for similar types of investments (defined generally as "like-kind" assets), with the vast majority being real estate for other investment real estate.  Here is a good link for an article on this topice, which specifically notes that securities are disallowed for a 1031 exchange. www.irs.gov/pub/irs-news/fs-08-18.pdf

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I don't have a lot of advice specific to New York, but rather the college area piece of things.  My number one recommendation is research, research, research.  There are many college towns (and colleges/universities themselves) that take a very hands off approach when it comes to student housing and others that have ridiculous amounts of red tape and bureaucratic requirements.  Make sure that you know what you are getting into.  Just as one example, there is a university in my state that REQUIRES all freshman live in student housing and for landlords to qualify and be able to provide said housing there is a laundry list of rules and requirements.  Most aren't this aggressive to be fair, and many will be much easier to work with, but do your due diligence for sure!

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I love this post @Enrique Jevons, and as a lawyer want to especially emphasize the documentation piece - this is the easiest way to ensure your complaints are taken seriously.  Especially in this day and age though, I'm not just recommending a journal entry, as those are pretty subjective - what sounds like an elephant to you may be white noise to another.  Take video and audio of the noise issues, ideally with time stamps of some sort, and you will set yourself up for real success if you do need to file the noise complaint and want it taken seriously.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Right to the attorney answer, sorry - it depends.  As a general rule across the country, the landlord is responsible for maintaining habitable conditions, i.e. it's your (landlords) job to make the home livable.  Usually this will include the basic needs, such as water, air, plumbing, etc.  Had the handle broken due to normal wear and tear, this would pretty clearly be your responsibility to maintain and fix.  That being said, tenants are generally responsible for things they have installed or for damages that they have caused, whether by negligence or on purpose.  In the case above you are in a bit of a grey area, but if you were able to prove that the cable was in good shape and that the cause of the issues was based on their actions alone, you would have a pretty solid case that the tenant is at fault and needs to pay.  Please note there are two other factors that should come into play with analysis of this sort - 1) the lease agreement and any specific terms that may guide this particular lease/property; and 2) the state/county rules with regards to tenant rights and responsibilities.  CA especially is known to be complicated and different than the ordinary, with pretty strong tenant rights tendencies.  Your best bet is to connect with a local attorney that specializes in this matter, if the value of the repair warrants such investigation.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

This can be a tough call for sure. How long have they been tenants in this property?  What is your breakeven and profit analysis based on the age of the home, mortgage, expected costs, etc.?  Are you worried about scaring them away or does this area do well when it comes to filling the rental?  Lots of things to consider.  Fortunately, In Pittsburgh (based on profile) there are not specific rules with regard to rent increases. Landlords can increase rent as they see fit, provided you give tenants proper notice, typically 30 days though that can be affected by the lease agreement you have. So long as you aren't raising rent in retaliation for them exercising their legal rights, such as reporting safety violations, you will be just fine from a legal standpoint.  Make sure to follow the terms of your lease and the statutes of the city and state where the property is located though, as they can vary widely.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Syndications are a great way to get your feet wet in the real estate world without taking all the responsibility and risk solely upon yourself.  Many are strictly hands off for silent investors though, so sift through the different options carefully.  Make sure when you invest directly into real estate ownership that you protect yourself though the use of LLCs, trusts, and corporations as well - this can help both for peace of mind and be used to minimize and manage you taxes as well!  There are so many resources available, both paid and free, so I heartily recommend taking your time, doing your research, and starting where and when you are most comfortable.  Best of luck diving in!

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.