All Forum Posts by: Jerry Murphy

A check in hand might make him willing to sell now.  He wants it simple so make a simple offer.  If he says no, then move on or wait a few months and make the same offer. 

I would sit down with a good lawyer who knows about taxes and divorce and real estate.  Most divorce lawyers know enough about all three and they've probably seen this situation before. You should re-read any divorce decrees or agreements before making any decisions. 

You can do a 1031 with your ex. Then buy two similar properties and just split them between you.  I think I remember a special IRS rule that says you can do a 1031 exchange and split it so long as the divorce agreement says you will do that. I think the IRS even gives you a few years after the divorce to do this. 

What you do not want to do is try to do a 1031 exchange then sell to your ex within a year or so.  That could trigger the IRS to not count the sale as a true 1031 exchange. You could end up with a big capitol gains tax bill. 

You could buy your ex out.  Closing costs should be minimal. You basically give him $$ and change the deed. 

There are other creative ways to avoid taxes in this situation. But I don't practice law in this area so I would suggest you talk to someone more knowledgeable. However, most people find their exes to be untrustworthy and difficult to work with. If you do not then I think that is great.  I would still advise you to run your plans by your divorce lawyer.  

One thing I would not do is tell them "Do not call me anymore" most telemarketing companies and really anyone who does telemarking as part of their business have to comply with the federal law. If you tell them not to call you and they do, they could be fined.

Someday, you may be trying to sell and they will not be able to call. Just tell them sorry, we are renting. It will die down soon.

Lawyer up. He wants a fight. He probably has a lawyer already. $5,000 and waive all back rent is a common settlement. But if he has a lawyer they will fight for more. 

Also, call him and ask what he wants to settle. 

Manolo D. did you do it in LA or Culver City? I've spoken to a few people and it seems to go both ways. Some people get results good and fast.  But I've spoken to neighbors and contractors who say Culver is hit or miss.  They just are unpredictable. And I am sure that some of the things they claim that the law requires is non-sense. Government bureaucrats do it all the time. But in the case of Culver City, when it is my property I've taken to time to do some legal research to know for sure.   In the end it is usually just better to go along with them. They told my wife that the room had to be 80 square feet. Our design had 76.  The law says 70. It is indisputable. It is 70. But whatever. The dude with the stamp said 80 so we made the closet bigger so it would go over 80. 

BTW I think my contractor got it approved yesterday.  He talked to my wife and sent someone to start work today. 

8 years ago we rented our home.  Since we were planning on moving back into it, we did not raise the rent. Year after year we said 'we will moving back soon so let's just let the tenants be. The neighbors like them and they pay on time.'  Ultimately this cost us a ton of money. Now we have raised the rent a little but we have to figure out whether to raise it a lot to reach the new market rate or gradually and leave more on the table each month. If we raise it too fast they might move out and we would have to invest quite a bit right now into making it up to date.  

With our other tenant our only mistake was treating him like a child.  He paid on time and took care of our stuff.  But he called us for every little thing - clogged drains, stuck sliding door, minor electrical stuff like a blown fuse.  We were living abroad without a property manager and would try to get a handyman or electrician or whatever for him.  He moved out when we returned to the states and it all worked out but he sure was needy. 

I have a lot of my retirement plans in cash now. I sold half my stock shares and am holding the money is a nearly all cash fund. So I am hoping for a real strong downturn. Buy low and sell decades from now. 

I also have actual cash, not tied up into a retirement. I was hoping to find the right deal to put that into real estate.  But if there is a large enough drop in the stock market, real estate can wait. 

Getting permits can take a while.  The office in Culver City, CA is hit or miss. Some people told me they get stuff approved fast every time. My wife sat in the office for two days and said every single person she saw was denied or told to change stuff.  Our permit has been in the office for 6 weeks or so, and this is the third time we brought it to them. We made the changes they wanted but every time some new guy would say go change this or that.  Half the time they just make stuff up and pretend it is the law. Being a lawyer, I can figure out when it is the law and when it is not but at the end of the day I know it is just easier to grovel and kiss ***. If I give them a legal challenge it will take years and they will be difficult for me every time I try to do anything in the city. 

I have heard different things about how the new tax law will effect LLCs. Does anyone know if LLCs tax rates are capped at 20% now?  

I do not work in this area of the law so you should get some advice from someone local who routinely sues the county. 

However, if someone told me that, then I would reply that public records are in the public domain and their use is not controlled by the government that collects them. And mailing via postal service is a strictly federal area of the law that the county can't overrule.  Then I would tell him to show me the statute that forbids this - half of what government workers say is the law is actually just some junk some guy in the office made up. 

But a local attorney can tell you the real scoop.