All Forum Posts by: Jeff Rabinowitz

I set the rent at a different price for every property. Sometimes the difference is only 5 or 10 dollars but all the properties have different rents. Some of my tenants deposit their rent directly into a checking account I set up for that purpose, some pay online and some mail checks but I can usually tell from the amount who has paid and who hasn't (my bank does not identify who made the deposit). Even if I record the payment incorrectly it is usually easy to correct my error. This sometimes breaks down if the tenant pays late and includes the late fees or on the rare occasion when they do not pay the full amount due but I have found it quite useful.

I sometimes will code the rent amount. For instance, if I am in the process of raising rents for several units I may choose to have the rent amount end in a 5 or a 0 to signify whether the rent has been raised in this round or not.

@Daniel Mohnkern, welcome to BP. The point you make about facebook is relevant here. When you become active you will make relationships with other members. We will get to know your interests and expertise. Do you want to have to identify yourself (or have your wife identify herself) every time you post? Do you want everyone to guess? As you know, some will and some won't bother. So, am I speaking with you or your wife right now?

You can own rental property in a SD IRA but it may not be the best choice of investment for a SD IRA. There are many tax advantages to owning rental real estate which are worthless if the property is owned in the IRA since the IRA is a tax advantaged account. Also, the risk of violating the self dealing provisions are quite high if you own the property in the IRA. Every expense must be paid from the IRA and all income must go into the IRA. The penalties for making a mistake are severe.

All of the factors you mention will affect the value of the note as will the payment history when you try to sell it.

The severe penalties detailed in Dodd-Frank, the SAFE Act and the CFPB rules have made seller financing very risky for the lender. If the rules are not followed properly when the loan is originated the risks will be passed on to any future buyer of the note. An improperly originated note will be difficult to sell. It may be wise to contact a lawyer who is well versed in these laws before proceeding. The rules are relatively new and many lawyers do not yet know their scope.

If this is not a home you have lived in recently, if you have seller financed another property in the last year, or plan to in the next year, make sure the lawyer you contact is well versed in the SAFE Act, Dodd-Frank, and CFPB rules. The penalties for violating provisions of these laws are draconian and make the risks of financing owner occupants extremely high.

First off, this is not about hiding assets or evading US (or foreign) income taxes. I have no interest in doing either of those. I do have an interest in diversifying my assets. I no longer hold stocks, bonds or mutual funds as I prefer to hold real estate and silver. I am a US citizen and have been considering buying property in another country to diversify my assets. I am not really considering relocating. (If I did so now I would probably have to go without my wife as she is definitely not ready and I like living with my wife.) I live in suburban Detroit and it might be convenient for me to start by buying property in Canada. (Detroit is just north of Windsor and the US-Canadian border is closer to me than the Michigan-Ohio border.) If I did this I would probably hire a property manager in Canada to keep me in compliance with CRA regulations. So, have I attracted any US citizens to this thread who own real estate outside of the US? If so, what have been your greatest difficulties (setting up bank accounts, filing income taxes, etc.)? Has it been worthwhile or have there been too many complications and expenses?

@Roy N., being a long time Wings fan your post brought me a smile and I thank you. However, I was always a goalkeeper when we played hockey as kids. I don't believe I have ever put a puck in the net. It is too much fun keeping it out.

@Brian Jurvelin, if you have not already, I recommend you connect with @Mark Yuschak . I have had the pleasure or partnering with him on several deals in Genesee and Northern Oakland Counties and every one has been profitable for both of us. He knows the area very well.

If the current tenants are behind on the rent have the current owner start eviction procedures. If they do not, you must have a copy of the current lease, the tenant's application and the rent roll. This is material to your purchase offer. If you are planning on buying a problem your purchase price should be reduced so that you are well compensated for solving the problem.

You are losing $14,000 annually if your assessment is correct. At that rate your tenant may stay forever. Can you afford that? Why would you want to?