All Forum Posts by: Kevin Kaczmarek

Maria and Gordon, I am sorry to hear about your experiences.

@Maria, I would recommend you contact Jan Djikers at Suite Properties to see if she can help you take over the management of your properties to help you get reversed from the negative cash flow.

@ Gordon I worked in the Detroit market for three years and can tell you that services like Zillow completely over-inflate property values.

There are some good people and good companies in the Detroit area. I am sorry that your experience was otherwise.

Contact Jan Dijkers of Suite Properties. We have referred several clients to her and they have been happy.

the loaning of money to the LLC is most likely going to be considered shareholder contributions to the company, not loans. Charles Perkins can answer that part better than I can.
I would suggest you keep the rent split at 50/50 after six months of operation for any one property. Gives time to build up reserves, and get your processes down.

Have a time horizon on the entire partnership. "Begin with the end in mind" is so critical. I would suggest the partnership have intervals of every three years to revisit the exit strategy. Times change, markets change, people change. You want to know the end goal from the beginning.

And most importantly, get everything down on paper and signed off. Partnerships go bad when people make assumptions that everything is going to be fine, until its not fine.

Good Luck!

I would suggest seeking out a non-disqualified family member that wants to earn a rate of return in their IRA. Help them make the IRA self Directed with a custodian like Equity Trust. Come to an agreement of the payback (monthly payments, Interest Rate, length) and that might be your best solution.

I have been following this thread with not much to contribute other than Jon is spot on. The key I see is, instead of complicating the transaction to get to the son, which seems to be the end result, an IRA private lending loan would be best.

The IRS doesn't audit IRA's nearly as much as other things, but you can bet your bottom dollar in the future they are going to come under greater scrutiny and you want to make sure all transactions are clean to avoid a disqualified IRA.

Bruce,

First off congratulations on your first individual deal.
Have no fear, the "technical" part is not that bad.
You should pick the title company and schedule the closing date. It will not be too bad. All the title company will ask for (if this is a straight cash deal) is a copy of the purchase agreement, a copy of your deed, your operating agreement (if you are selling in a LLC) and that should be it. They will draft the paperwork, send you and the buyer a closing packet to review.
If this is a deal similar to what you have done with your mentor, you might try the title company that was used for those deals. All you need is to find a copy of a HUD from the sale to see who the settlement agent was. If you don't want to use that title company I am sure there are members on here that can refer you to a good title company in your area that work well with wholesalers.

Taxes are so high and ridiculous because our government is self-serving and is run by elected officials who couldn't run a hot dog stand let alone a city, state or country.

Oh wait, I would write more, but I have to go write another check to the government.

For the last couple of years I get emails from Companies and "Guru's" on December 31st for close-out sales and inventory clear-outs. Have you seen anything good this year come across your email that you are interested in buying?

Great Point, will tell him to do that, glad its not me having to call.

Now, does that apply even if the seller's disclosure included all personal and real property?

I received a call today from a relative that just bought his first rental, and to his excitement there was a car in the garage. I found out it was nothing fancy, a mid 90's Dodge that is probably worth $1000.00. My question is what is the best thing to do with it? Do you try to sell it? Donate it? What is the smartest way to handle it in a real estate business.