All Forum Posts by: Roger Gelpey

@Ashish Acharya

Thank you VERY much for the comment!

I have had contradicting advice regarding a loan we are contemplating so please help me!! We are considering taking out a commercial loan on a rental property we own in our own names and to use the funds for other RE investments in multiple states. The property is free and clear now. We have been told by a national legal/tax firm that we can create an LLC to hold the investments and that LLC would be a pass through entity so that the income and deductions will flow to our personal returns. According to them if we loan funds to the LLC with a promissory note at the same interest we are paying on the loan....

1) The LLC will claim a deduction on the interest paid to us personally. Then the deduction will flow to our return.

2) We will report as interest income the interest paid by the LLC on our personal return.

3) We will report as investment interest expense the interest paid to the bank that issued the commercial loan.

A second scenario outlined (and more streamlined) is to transfer ownership of the property directly to the LLC and have the LLC borrow the money, that way the income and deductions flow to our personal returns.

I have had some trouble following the logic of these scenarios and a local CPA has told my wife that it isn't legal to deduct interest on any money borrowed in this way under any scenario. I would greatly appreciate opinions from more experienced pros here!

Thank you

Can someone please give me an Idea what the time frame is for Shelby County to complete the process and supply the deed? Thank you!

Another scenario that I am curious about is if a period of inactivity while performing repairs on a property affects possession? We are getting ready to put a complete  rehab into a gutted "abandoned" house but are waiting for figures. am I risking continuity?

 Thanks Ned! I figured it was "too good to be true". Now to decide between Tax Title Service and an attorney!

On The Shelby County Trustee's site it states that tax sale properties are conveyed with "perfect title". Has something changed recently with their sales that negates the need for a quiet title action? I find it hard to believe. Any recent experience here?

 Great advice! I hadn't thought to get it appraised  first but definitely worth the $.

 That's where I'm not quite sure...   Does clearing away years of overgrowth that has actually starts to affect the integrity of the structure and allows the house to be seen an actually entered increase the value measurably? We actually couldn't get at certain areas to assess the actual damage done by the wisteria that hadn't been pruned in at least 4 years but it was getting behind trim and under the roof shingles up high as an example.

My question is whether an abandoned property which has been gutted to the studs needs to be brought back all the way to habitability to qualify for reimbursements of costs. We have been getting the place ready for rehab and there was significant intrusion of vegetation etc and to preserve the integrity of the roof, siding and fascia trees and vines need to be trimmed/cut. Additionally we have cleaned the property and documented all. Are these expenses recoverable in the event of redemption before completion of rehab? Thank you very much!

The info I got from the Trustee's office was that the deed was registered  with the Register of Deeds for purchaser as part of the sale. It still says we need to call and request that on their website. Can someone more experienced please enlighten me on this? Thanks very much in advance!