All Forum Posts by: Nick Liu

this book is ridiculously addicting, I started reading it last night till 3AM in the morning, continued plowing through the remaining chapters first thing in the morning. I'm stuck at page 101, my head is spinning trying to figure out the difference between Capital Loss vs. Ordinary Loss. 

If I'm understanding it correctly, the book is saying selling a property at a loss is considered ordinary loss, which allows investor to claim >$3000 on tax deduction. I'm not a tax expert by any means, not even close by nautical miles; but I did perform some online researches. The results seems to contradict with the book. can someone clarify the difference between the Capital vs Ordinary loss. @Amanda Han

below are some of the sites that i researched: 

INVESTOPEDIA DEFINITION

CASE STUDY

Truly inspirational stories. I'm contemplating on selling my first house over the next year or so because I no longer live in the same area. The house could really use some upgrades and artistic touches before selling. I'm born with artistic gene deficiency, any advise from the experts on a magical formula to shine up a house?

Congrats bud, takes a lot of persistence to write 1000 post over 3 year frame. Keep up the awesome work.

Rusty Scott Love the insight, thanks a ton Scott

Joe Villeneuve & Jay Hinrichs , Great discussion, I think I have a much better picture now. Sounds like there's Isn't a silver bullet that'll guaranteed which side the balance is going to tip when economy is unstable. I'll create a model to run some analysis on different scenarios to determine a acceptable loss for myself. I definitely would like to keep 50% of what I owned if things do go side ways, which means controlling optimal reserve is the key in this equation.

Very good point Brent Coombs , I did not thought about the limited input. So if all hell broke loose, all I'm losing would be the original 20% + time + Headache + Uncalculated rehab cost, which is still somewhat a acceptable loss in my current stage in life. Not that I'm planing on loosing it, I'm just planing for the worst before starting to dive in.

Welcome Kevin, Strictly personal opinion: there is no such thing as "unreasonable", either go home or go big, as long as your plan it out correctly and have the discipline to fulfill your commitment. Which is what I'm training myself on. Good luck with your goal Kevin.

To start off, this is question post, not a solution thread. I have been thinking and planning on deploying the BRRR strategy over the past few weeks. While meditating this morning (I'm trying out the miracle morning routine recommended by the latest podcast, committing myself to it for at least 30 days), one question came across my mind. Question: How would one prevent from foreclosing/offloading their rental properties when the economy took a dive. When economy is rough, it is inevitable a percentage of workforce will be laid off, and thus your rent will likely be in jeopardy, which would also translates to reducing the cash flow is landlord's wallet, which could ultimately result in landlord not paying bank. I think you get the idea. I have a bad feeling the economy will take another dive in <5 years, and would like to plan for the worst before starting off. Any advises and suggestion would be greatly appreciated.

thanks for  the advise @Matthew Kreitzer

this is not exactly 100% real-estate specific question, but I'm sure we have the right expertise in the family to answer it. I'm sure I'm be encountering the same  situation down the road, might as well prepare ahead of time.  

BACKGROUND:

A good friend of mine registered and funded a LLC last year planning on starting a business. The business didn't work out due to the current market condition (oil price drop...). He is planning on transferring the fund from his LLC account to his personal A/C.

QUESTION:

Is there a standard protocol to transfer fund from LLC a/c to personal a/c? Any tax implications?