All Forum Posts by: Michael Haynes

Hello Sofia. I'm not a lawyer, but, I did this once with my girlfriend when we started to buy fixer upper houses to rent in Tampa. The first one stalled as a Flip and she wanted out. I paid her off At Cost and that should not be a tax event. She "invested" her money and it did not produce a "profit" and I paid her off without any Cap Gain. Right? You say that you formed an LLC with your fiance? Then, you want to pay off the mortgage and transfer the ownership from you and your brother to the LLC? It's a step by step explanation that is needed. Is that your Goal? Then, doing that At Cost without any Profit should not create a Cap Gain...correct? You would have a Tax Stamp and Title costs etc. as far as I see... With my girlfrend bailing out on me, I rented for a couple of years and sold at a $20,000 profit. I pay Tax on the Gain after all the Deductions allowed for me as I am considered as a Real Estate Professional. I manage and repair and spend all my time selling off what's left of my R.E. Portfolio as an Active Investor. I am currently selling four Commercial lots on Dale Mabry and Interbay Blvd. I have Carry Forward Deductions from the 2008 Crash, enough to make all my Profit, Tax-free as I do not have the $3000 Individual Deduction Limit. I will have enough on that Sale to pay Cash for a fixer upper home in Brandon. That property will be worth up to $50,000 more after the Rehab. As soon as it is fixed up and I establish as my Residence, I have the manager at Republic Bank offering to give me a Home Equity Line of Credt at 70% or more, Loan to NEW Value. No Cost. You want to get as much as possible and at 80% LTV I could get back the Cost of the new home with a Credit Card to use all the money over again. No questions asked. I have been waiting eleven years to get out of this hole and back to being Flush with Cash to do Flips, one at a time. You can't get into trouble if you have Cash to Buy and Fix Up. Carrying Costs are cut to a minimum, without any Deadlines. If you get nervous, you can Rent for a year and try again later. I am also Selling my current Residence, again Tax-free after living there for two years. I will net a Profit of at least $50,000 for this 11 years Rental that I moved into. With the remaining Profit from the Sale of the Commercial property and the Equity Line of Credit and the Tax-free profit from Sale of my Residence I will have enough to "farm" the area where I am moving to and never spend all the money. I will be free of the Banks and Hard Money etc. as long as I just do, one at a time going forward with 1031 Exchanges and moving into one to sell as my Residence, Tax-free. I have properties in Brazil and I will spend most of my time down there and just keep up one Residence and one Fixer Upper/Rental for Sale in Tampa area as my Business. Talk with Chris Campbell at Stewart Title about your Plan. The reason my Agent got me to use Stewart Title 30 years ago was because they are also the only Underwriter in Tampa. I want to sit down and get hard copies of all the Deals and ask questions and not be Esigning everything and not get hard copies etc. You can call Chris during any Closing process and get answers right away. Takes the Stress off of doing R.E. Deals.

Hello Sophia Kolesnikova. I think you are over thinking this transfer of ownership. I would just call Stewart Title on W. Cypress St. in Tampa and consult with Chris Campbell. If you pay your brother off is one Quit Claim Deed. The other is if you can really pay off the existing Mortgage in whose name would the property be? The Quit Claim Deed does not have to continue ownership in your fiance's name. You complicate things by wanting him on the Title. If you pay off your brother with money from your fiance and then pay off the mortgage you can get another Loan and settle up. 

Hello Nicolas Botia. The one thing that Newbie's don't understand when they see Duplexes as a way to go for a First Time Buyer/Investor is... "the worst thing an Owner can do." =  to Live in the same building as your Tenants. That also means to take in a Roomate in your 2/1 Apartment to lower the costs. As a burned out Landlord with 30 years of renting in S. Tampa, I look forward to just buying a Fixer Upper House to live in for 2 years and be able to sell Tax-free as my Residence. I finally got a a good offer on my 4 Commercial lots off Dale Mabry Hwy and Interbay. I will get back to where I was 11 years ago, before the Crash, with a Profit of $350,000. That will allow me to buy Foreclosure houses under $200,000, Cash, fix them up and do 1031 Exchanges as I find real Deals to buy. You can 1031 those houses until your Profits go over $200,000 and then move into the last one for two years and sell as your Residence. Your an Agent? You need a place to live and you have a JOB. Why complicate your life with "biting off more than you can chew" and putting up with the Tenants? Single Investors don't need to do more than one Deal at a time and make it Tax-free and Tax-deferred. "The Bigger they are, the Harder they fall." We are at a top in the Market. Where do you think it will go from here? 

Hello Jonathan Hulen. Sounds like me when I made my first trip around the World 50 years ago. I grew up in SF Bay Area and was a surfer in Santa Cruz, but, I love the Tropics. So, it was lush, tropical mountains into the sea with rivers and lakes and surf. I ended up three hours East of Rio de Janeiro, Brazil. You have to get around the Politics and look forward to more good weather and food and things to do. If you learn how to make money on your laptop, trading REIT's or the other Markets, then you don't have to do more than buy a fixer upper Home and use the Tax rules to Flip it and move the money onto the next houses within 90 days to use it Tax-free. I think as a Minimalist as far as Real Estate is concerned. Use the Tax-free and Tax-deferred rules to make more with less.

Dear Peter Palmer, you are graduating from School with what? I quit College at 17 when the Counselor asked me "what do you want to go to school for?" I told her that all I wanted to do was to learn how to make money. She said that was not the purpose of College and I quit the same day. At 19 I had $25,000 Cash and did not know what to do with it. I would say you need to read Robert Kiyosaki and the Rich Dad, Poor Dad and try to understand the lesson about the importance of Daily Cash Flow. You can work for longterm Wealth Creation or strive for Daily Cash Flow. If you add on the lesson of Tax Deferred and Tax-free methods to make Cash Flow, then, you will end up thinking like me. Americans don't know how to make Money and they don't teach their children how to Manage it. Kids grow up with the unattainable idea of "being a Millionaire." No one ever teaches them how to "horse trade." You want to start with Real Estate Investing, then, look at the fact that you first of all, need a Place to Live. I never wanted to Buy a place that I would not live in. How can I make my Home an Investment? You can buy a Fixer Upper and move into it and two years later, as your Residence you can Sell it Tax-free up to $250,000 as your Residence. You don't even have to Declare it on your Taxes. All the Newbies that think that they need to Create Wealth with a Portfolio of Rental Properties are thinking about being a Millionaire and not in Daily Cash Flow. As you live in your fixed up Home for a few years you can also learn how to do Flips and do them as 1031 Tax Deferred until you have over $200,000 in Deferred Profits. Then, you move into that last house for two years and Sell it as your Residence, Tax-free up to $250,000 if this Real Estate Cycle holds up until then. Or you live in it a few years longer until the Market gets back to another High and not worry about the  endless Tenant problems and take your Degree in whatever you studied and just keep working at a JOB. You can study Creative Financing and look for Motivated Sellers who might Finance by the Owner while you fix up a property until you can qualify it for a Mortgage. Learn how to use Other People's Money to make Money...Study the 5 and 10 year Methods to Make a Million. Join the Club and attend the Meetings to see what other Investors have done to solve the R.E. problem and keep in touch with the R.E. Cycle to not suffer in the next Downturn. If you Limit your Risk with R.E. you have "staying power" to get through the trough to the next uptrend and be a Seller with Profits. If you got a Degree in Business and Finance you could also look into learning how to just Invest or Trade REITs to add onto your Tax-free Sale plan of your Residence, etc. and not get involved with Rentals. You have to understand Active and Passive Investing and figure which one you want to get into. Time to get cooking. 

Hello Sean Drees. I think Spec Home Builders shoot for a 20% profit. Trying to get 10% out of Seminole Heights properties on the West side of I275 in a Flip is tough. That is why the Flippers moved to the East side of I275 three years ago and bought crap to sell for $200 > <. If you look in your area of choice and price a New Home you may find that you can buy Brand New...3/2 with a Garage for $250,000. Why would you buy a 1950's wood frame, 3/1 without a Garage that is fixed up for $250,000 or < less? This is what happened ten years ago South of Kennedy Ave. The Builders and Flippers built out the East Side of Dale Mabry and two years ago they started on the West side which is slowly being worked on now because the value of the lots went up to $120,000 for a tear down on the East Side. Your a suit and tie guy...would you live on the East Side of I275? I never bought a longterm Rental that I would not live in. 

Hello Jacob G. What happened to doing a Google Search for "Airbnb rules City of Tampa Florida." It says there are "no short term rental rules for City of Tampa." The only Law is a Hillsborough County Law requiring you to pay a "Transient Room Tax." You have to register and pay a tax based on your income for the month. When you register you should be able to get the rules straight. In the past they said that all Rental Leases have to be for more than six months or you fall under the Hotel Rules, which this may be the same ones for Airbnb. There was also the vote a few years ago to fine Airbnb owners $400 a day for any Rave Ups they may have that neighbors complain about. Did you see that party last month in Atlanta where there where 100 party goers and some people got shot? I know a lady who has two Airbnb houses in Safety Harbor and my friend told me they outlawed them there and some in Clearwater? That's more Searches online and phone calls to find out what the specific rules are in each area. 

Jacob G. the State law was done to help the home owners prepare for the Hurricane that was comming. I don't think it gave you the right to cut the whole tree down. I understood that it gave us the right to quickly trim dangerous or overhanding branches on the roof, without having to get a permit. I only saw Governor DeSantis on television when he signed the law and I have not read it. But, I have been in big trouble with the City for trimming dangerous branches off of my roof in the past, when the "tree hugging" neighbor called Code Enforcement. 

Hello Jacob G. The new Code for tree removal has to be read. It depends on the size of the trunk of the tree to start with. Then, you have the arborist report from the licensed and insured company who cut down the tree. In your case it's two oaks that were deemed "dangerous," but, not dead? And you went ahead without a Permit, thinkiing that the new State Code permited removal instead of trimming up? Then, you want to argue that the City of Tampa does not have jurisdiction? Are you a lawyer and want to fight with the City Board members over your interpretation of the City Codes? One of the biggest concerns that Builders have when they look at a property within the City limits in Tampa, to buy for new construction are The Trees. One of the biggest fines and most horrible fights you can get into with the City Board is if you trim up or remove a Tree without a permit. I have a half acre of Commercial land, on a corner, 50 feet off of the Dale Mabry Hwy, just before Interbay Blvd that no Builder wants because I have one, Grand Oak tree in the corner, just at the 30 foot set back. The property is good to build ten Town Homes. You better not wait for the City to contact you and call Code Enforcement to find out what the status of your Violation is. The Daily fine can be substantial and if you need a Lawyer you can call Steve Michelini on Bayshore Blvd. He is the guy on TV who goes before the Board all the time to fix property set back problems and get permission to remove trees etc. 

https://www.tampagov.net/planning-division/info/tree-removal-information

Hello Brian, they just announced this week that patching the 100 year old water mains in Tampa is not possible anymore. They are going to raise all water bills by the end of this year and begin to replace ALL WATER LINES in the City. That will be a huge mess that will last for ten years. Are you aware of the Hidden Red LIne Properties that are on a map with the Public Works Department? They have been keeping records of complaints of flooding in the yards for years. If enough complaints are made then that address goes on this hidden Red Line List. When you Sell the property if the next person wants to demo and build anything larger than the old footprint...the City will not allow it unless the New Owner pays to Mitigate the Flooding problem with a Retaining Pond, Connecting to a Canal, Storm Sewer or other means. The City knows that the properties South of Kennedy Blvd. are all three feet above Mean High Water Level and there is no way to pump the water out of the streets which are our open Storm System in a Hurricane or Flooding Rains. I have a CG half acre on 6305 S.  Roberts and Mango with a 3/1 that I have had For Sale for a time. It is good to build 10 Town Homes. The City says that the lots have to be built up 18 inches above the center line of the Street to build. Obviously the reason is that they want the Street to become the open Storm Drain to the Bay and keep new constructions up some out of the flooding water in the street. In esscence the New Constructions become the Water Shed points. That presents a problem for runoff for your neighbors on the lower levels etc. But, that is their Plan. There was an article in the paper that you can Google, a couple months ago detailing one ladies problem for a tear down that she wanted to build out bigger and got stopped by this Red Line List which won't allow it.  You can go to the Public Works Dept. site and find this list and Map in red. So, Good luck.