All Forum Posts by: Leon D.

Dave T I think, though I'm not positive, that if LLC2 is a *wholly owned* sub of LLC1 (as OP describes) and 2 uses 1's EIN, then the difference is academic and the 1031 is successful. What I think really matters is the tax-reporting entity, which would still be LLC1.

There are no strict guidelines about length of ownership term, and there's a lot of debate on the forums about time vs. intent. Most people I think would say, one year is the safe way to go.

Cory Melick Essentially, seller carry back = seller financing.

I'm surprised you're not being given a bigger break in the premium for higher deductibles, but a lot depends on the market and the property.

Arnie Guida Grading areas is borrowed and adapted from commercial real estate, where buildings are rated based on age and quality. Here's an example: Class A. These buildings represent the highest quality buildings in their market. They are generally the best looking buildings with the best construction, and possess high quality building infrastructure. Class A buildings also are well-located, have good access, and are professionally managed. As a result of this, they attract the highest quality tenants and also command the highest rents. Class B. This is the next notch down. Class B buildings are generally a little older, but still have good quality management and tenants. Often times, value-added investors target these buildings as investments since well-located Class B buildings can be returned to their Class A glory through renovation such as facade and common area improvements. Class B buildings should generally not be functionally obsolete and should be well maintained. Class C. The lowest classification of office building and space is Class C. These are older buildings (usually more than 20 years), and are located in less desirable areas and are in need of extensive renovation. Architecturally, these buildings are the least desirable and building infrastructure and technology is out-dated. As a result, Class C buildings have the lowest rental rates, take the longest time to lease, and are often targeted as re-development opportunities. There's no absolute standard to any of these, and it's all more-or-less relative (Class A in Cleveland might only be considered Class B in Beverly Hills, for example). These descriptions are adapted to neighborhoods as well: A is the hot area with huge rents and prices, B somewhere below that, C would perhaps be a solid blue-collar area (stable, a bit run down, but generally solid residents), D and below are places you want to avoid after dark. The grades are just short-hand to give everyone an idea of what to expect.

Chaz Reid It's pretty much impossible to give you a good answer without reading the text of the email, or without more detail from you. Without publicizing some or all of the language, we don't know what you're reading, either.

Jithesh Prabhakar Not an attorney, not a CPA. But I can say that you'll have trouble with the IRS on a 0% loan: the rate discount would be taxed as a gift, I believe. Your uncle would have to charge you at least the Prime rate.

So... This post actually has nothing to do with buying real estate with cash, and is all about credit-score remediation programs. It's not a government program. It's not free. It will probably not impact your score, unless (like many of these sorts of things), it's a well-disguised bankruptcy enabling/counseling service.

Sam Leon I'd say the plus/minus favor depends on the price point of the rental. Anything under $3000/month for an apartment or $5000/month for SFR I wouldn't bother, since 99.9% of the population lives with a standard wall-type shower head anyway. Rain showers, body sprays, etc look great, but are definitely pricey, luxury features that should be reserved for pricey, luxury rentals. And while I'm sure "the ladies" may like the rain shower, I do also know that my wife's #1 complaint about showers is lack of water pressure (too low, and shampoo becomes really hard to rinse out).

Turn around, walk away, don't look back.