All Forum Posts by: Paul Merriwether

@Arlen Chou EX I bout a home at 7585 Blanding Dr Ferguson, MO. for $31,200 in 2022. I called to get ins they had me replace roof , cut grass total $7200. To clean it out was $3000. With closing cost I'm now up to approx $45k. I get tired of this area as I see the cost are as high as in CA in terms of labor. I try selling for 6 mth starting at $45k. I eventually sell at $23k just to get rid of it. The purchaser with a few days flips on Slowflip for $79k! A buyer that wants to own and is willing to do the work to clean the house up. Seller financed. The buyer used OPM to buy and the tenant owner will pay that note. The loan is paid off in 60 mths. In mth 61 the sell is now cash flowing until the buyer pays off the loan or refis. Now he'll pull in lets say $600 in mth 61 for the next 25 yrs. Just 10 home is $6,000 casgflow with no landlord issues. 100 homes is $60,000/mth!

0 Votes

That's EXCELLENT! Yet as I suspected very low appreciation. In the worst part of Oakland I can find homes in the $600k area. I was a landlord for 30 yr's in Oakland. I always had negative cashflow. But I didn't care because of write off's and appreciation. I was always pulling cash out.
1% rule is awesome. You can't do that with SFR in Oakland.

I'm now working with a group to learn Slow flips. That's where you buy a cheap home for $30k. Do no work on it at all then flip it to someone else on a contract for deed at 30-40k more. The home is paid off in 5 yr's. In mth 61 you start getting the that money for the next 25 yr's if they stay. Or they refi & cash you out. As I mentioned one guy bought 100 SFR's last yr. The biggest huddle finding buyers.

0 Votes

It appears to me uncertain. I'd love or you to be right! Yet Prop 19 states child must live in home when inherited. >> There are still exclusions for transfers to children or grandchildren who intend to use the home as a primary residence. However, the exclusion only applies to property under the $1 million threshold. <<

This legal site says >> Creating an irrevocable trust could be a possible solution to avoid Prop 19 taxes. Transferring the real estate to an irrevocable trust may help avoid Prop 19 issues and may also preserve your step-up basis for capital gains tax benefits.<<

It's not clear how Prop 19 will affect the taxes when inheriting property in CA. Other legal sites I've reviewed all just don't know. How it'll play out. However I'm betting any person inheriting today from a trust when they go to claim tax exemption for owning or file to refi a mortgage. CA tax & local tax boards will reassess that property if the child isn't living in it. It's in the Cities best interest to do so. Prop 19 is pretty clear.

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@Arlen Chou You are one brace sole buying units in Bay Area. The people aren't the issue it's the market and legal ramifications. Think COVID, non-payments. Who knows what could be coming next in terms of legislations. On that 12 unit $2.2m. What are the numbers in terms of Cap rate, down payment rental incomes? When they say they cap rate is 6. You can get that almost in a CD with no hassle's. I just don't get it. Apartment units very low appreciation rate if any. Now when talking about SFR appreciation that is and has always been Oaklands strong point.

That's great in regards to your 11 doors. However, I know a guy that bought 100 homes last yr! No landlord responsibilities. He expects to be earning $600 x 100/mth in mth 61. There are other ways to skin a cat! :)

I also listened to a guy flipping lots with no landlord responsibilities and is CRUSHING it!!!

2 Votes

Are you an attorney? Putting property in a living trust might not stop tax increase when property transfers to children NOT living in the property. Please post legal documentation that you are correct. Thks.

1 Vote

Quote from @Caroline Gerardo:

Quote from @Shafi Noss:

Quote from @Caroline Gerardo:

Furniture for Sale From Luxury LLC Corp. $1.

Sorry to tell all the cottage industry attorneys and gurus on BP that owning or vesting in a LLC no longer keeps your identity secret. It really never did. If you applied for a mortgage with the LLC it's publicly registered. And everything digital can be accessed or hacked.

Beneficial ownership reporting is a requirement from the Financial Crimes Enforcement Network (FinCEN). This is the U.S. government's efforts to prevent money laundering, financing of terrorism, tax fraud, and other illegal acts. Beneficial ownership reporting requires those with control over businesses or legal entities to provide identifying information.

This information includes: Full legal name, Date Of Birth, Residential Address, Unique identifying number from a non-expired US passport, state identification document or driver's license, social security number, ITIN number, or foreign passport.

Reporting companies must file their initial reports electronically through FinCEN's Beneficial Ownership Secure System (BOSS). Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025. A beneficial owner is a person who enjoys the benefits of ownership even though the title to some form of property is in another name.

A court can subpoena the name, address, DOB, driver's license/passport or ITIN or Social security number thus exposing your asset protection plan.

Twenty three types of entities are exempt from the beneficial ownership information reporting requirements.

These entities include:

Publicly traded companies meeting specified requirements- you know those on the stock market
Many nonprofits but not all- the not for profit has to be approved, filed, and registered with IRS and the state.
Certain large operating companies

Other entities that are exempt from BOI reporting include:

Sole proprietorships
Unincorporated associations such as HOA's
Estates
Family trusts includes Revocable Living Trusts
Natural persons opening accounts on their own behalf a human who uses their real name
Trusts (other than statutory trusts created by a filing with the Secretary of State or similar office)
Authorized users for credit cards, your children on your VISA card
I wrote 50 times to vest in Living Trusts and save the filing costs, keeping money separate, and paying for extra tax returns and attorney fees. Now here is another piece of evidence why not to bother with Asset Protection Schemes.
Caroline Gerardo
NMLS 324982
opinions are my own

Once you incorporate only an attorney can represent you in court, you can't represent yourself, even for a single member LLC. Another disadvantage of having an LLC.

A Living Trust is not expensive to set up. 1. decide who is in charge 2. decide who gets what percent of the assets when you die 3. list the asset. You could find online forms and set up single property or asset living trusts for free. Then the whole form which is witnessed and sometimes notarized (depends on state) is placed in safe deposit box. When you apply for a loan a copy is provided to complete a Trust Certification often done by the Title Officer as part of the closing. Title then is recorded in the trust.

The advantage to Living Trust is your heirs are protected from $$ tax stepped up. You can name the trust the same as the property address. Hazard insurance loss payee is in same name, bank account as well.

You also want a will that is mentioned in the trust to have more details. The will DOES NOT go to lenders or Title Company unless the Trustee Died.

0 Votes

Quote from @Glenn Klingensmith:

I have joined PD long ago and it was a great decision! They deliver what they offer. Peter and Julie genuinely striving for your success. You need to be coach able, listen and implement what is provided.

You have to do the work and with PD you will work smarter!

How much did the program costs? It's been 5 mths have they funded a deal for you?

0 Votes

His strategy is to buy CHEAP properties for $30,000 sell them for $79,000. Then do no repairs and sell the property to investors paying off the property in 5 yr's. While collecting payments for buyer for 30 yr's. He has written a book called Slow Flips. As craziest as this might seem I sold a cheap property to one of his students I just found out the other day for $23,000. This student is said to own over 100 cheap properties.

His name is Joey Chinese. He has a website with a ton of cheap homes on that says sold.

1 Vote

All Forum Posts by: Paul Merriwether

Paul Merriwether has started 2 posts and replied 132 times.

Post: Sell triplex and buy 12 plex in Oakland good idea?

Post: Sell triplex and buy 12 plex in Oakland good idea?

Post: Sell triplex and buy 12 plex in Oakland good idea?

Post: Many Times I Said Don't Waste Your Money on LLC Vesting. Now this:

Post: Sell triplex and buy 12 plex in Oakland good idea?

Post: Many Times I Said Don't Waste Your Money on LLC Vesting. Now this:

Post: Many Times I Said Don't Waste Your Money on LLC Vesting. Now this:

Post: Has Anyone Used Partner Driven LLC??

Post: Has anyone heard of Scott Jelinek and his Slow Flip strategy?

Post: Has anyone heard of Scott Jelinek and his Slow Flip strategy?