All Forum Posts by: Matt Devincenzo

Quote from @James McGovern:

@Matt Devincenzo government infringes on many constitutional rights so why not continue their left leaning habits and infringe to make the process better?

Because that's a infantile child's argument. Why should I act or behave a certain way when the other person won't? Because their actions have no bearing on what is right or on how I should. 

I will literally die on a hill defending what I believe the constitution says and means by its words. If the US slips into some communist/socialist/facist/dictatorial regime whether conservative or liberal and I'm the last person who believes in what we were founded on so be it. I truly mean it what I say it...I joined the military not to see the world, not to fight the fight, but to defend the constitution and no one side's political perspective changes that.

I have my personal political perspectives, like we all do, but those shouldn't influence what we do with constitutional rights.

Quote from @April Birdsong:

Just to clarify, I don't think there's any confusion here you were asked if you could extend and said yes, when the real answer was no. At minimum you should have reached out to the ABB guest and asked if they would cancel so you could extend, if they said no then you should tell your MTR that you can't extend them. 

You need to own this problem you created for your guest.

This idea does the opposite of what you imply should happen. It creates a whole new hurdle to overcome in order to auction the home. Now a lender would need to gain access, if access is denied they would need to file a suit for access, if refused then they'd need to schedule law enforcement to meet them there to force access etc etc etc....

Currently all of these actions are left to the private buyer to complete, and the lender is able to complete the sale more quickly (or take the property REO where they do this as an owner).

Picking and choosing which constitutional right to trample doesn't help anyone. Even if another constitutional right seems to have been infringed, like the 2nd amendment you mentioned, that doesn't mean others should be. It's a lot easier to rectify one possible infringement later, than it is to completely reestablish a strong perspective on all constitutional rights later. 

I'm not a tax guy, so I won't pretend to be one now...That said, he's likely given you half the story or you misunderstood half...

What he's referring to on the cash-out and you are looking for on the re-investment are the IRC "interest tracing rules"...I'll let a real tax guy handle the explanation, but a search for that term should get you where you need to go. 

Have you done a deal this size before? Do you have a track record with investors of successfully going full cycle on a deal? 

If so, then what is your existing investor's response to funding this new deal? What are their concerns and pain points, and can you overcome them? 

If not, then there's your issue...you need a sponsor that has the track record to help you build yours.

You said the PE group you work with, what type of deal did you work with them on, and what's the concern with funding this? 

Unfortunately I'm not sure you got sound advice on DTI...

Initially the rent may be discounted 75%, and the entire loan counted, but a cash flow rental should still at least break even on this calculation. And once you file a year or two of returns, then they should use the actual cash flow for your DTI, so in your case you'd have been able to use real numbers by the time you're talking about purchasing.

Also another discrepancy, the DTI may not be calculated the way you think. This rental would get its income, minus its expenses and then the net number is added to your DTI. So if the net number is positive CF, then your DTI actually improves, not gets worse.

Final thought, I've seen that loan applications want any entity owned 20% or greater included...I'm not sure if the PG vs no PG plays a role here as well, but I'm still not sure this solves your concern.

I'm not sure I agree...it's hard to say with a single picture, but the entire premise doesn't add up...

The tub is cast/steel which is then enameled or epoxied etc, and since you say there's no visible indication on the surface of the tub then it is highly unlikely that the coating itself has failed. So if the coating is good, and the pipe is good then the cast/steel will never be in contact with water. It's a continuous barrier of epoxy/enamel to the drain, which is connected to the tub shoe with a gasket between that stops water from ever getting under the epoxy/enamel. 

So my two thoughts are first that the drain gasket is offset, worn, or otherwise damaged...but looking in the photo I don't think this is the culprit...but I'd check anyway...it looks like it's just plumber's putty so it should be easy enough to pull it and reset it just in case. 

Second, looking in the photo there are two a leak 'lines' on the right side of the drain and just under the overflow drain line itself where it drips down from just out of the photo and then drips at the tub shoe. That to me says the 'leak' is from above most likely from the gasket underneath the tub overflow cover. So before I rip anything out I would 100% replace that gasket or at minimum check it and reseat it. Other options would be a poor seal under the escutcheon for the handle set or shower head...those are less likely but also possible. 

At the end of the day it may still need a demo if there is an improper install causing the leak from above, but I'd absolutely check all those other items and see if I could correct the issue first.

Since this is your primary then no you cannot 1031, that is only for investment properties. But you don't need a 1031 to accomplish what you're mentioning. Since it is your primary you get $250K single $500K married (you say we so I'm assuming married) capital gains exclusion. So that sale will be tax free no matter what. 

As far as the sell one, buy multiple question. You can sell one or more, and buy one or more...there are some 'rules' related to values etc which I'll leave to one of the experts. But the short version is yes it is possible to split your 1031 up into multiple properties.

In my opinion yes. 

I also have a HELOC on two properties here in SD, and I opted for the highest loan amount not the lowest interest or lowest payment. These are my short term funds, and are always paid back from whatever cash-out or sale they're tied to. So saving even a few hundred in interest each month isn't a big deal because the funds shouldn't be out for more than a year on any given deal. Saving say $300/mo interest for a year is only $3,600, but being able to have an additional $50K on the line that's available for contingencies or overages is priceless in comparison.

I'd start there, at worst this means you can file for eviction if she disagrees with this and Dad doesn't keep paying. But I would also offer her the ability to accept moving out before Aug 1st with no penalty, if she agrees then your noticing requirement is a moot point since she chose to accept your early termination offer. The other question is does Dad have legal ability to make decisions right now? If so then he can accept the early termination offer...

A friend has a sister that is schizophrenic and has had issues like this off and on over the years. The challenge often is she's not bad enough to get a permanent conservatorship, and legally is 'of sound mind' most of the time. So when she's off for a bit the best they can do is mitigate damage and try to help get her back into a right mind set again so she can function. So keep that in mind to work with Dad, but know he may not legally be able to solve all your issues. 

If you give notice and never hear from her, but Aug 1 all her stuff is gone then document the condition and note the unit as abandoned and move ahead. It is probably never an issue, but if she challenges it later you have proof that you served notice and before the notice was up her stuff was moved out which you took to mean she abandoned the unit.