All Forum Posts by: Roy Mitle

Thank you all. 

This is exactly what I'm looking for -  stabilized real estate syndications or funds where depreciation has mostly phased out.

Unfortunately - most syndications structure deals to maximize tax benefits with cost segregation, so I end up with passive losses.

Any ideas on how to get passive income....

This is for buying a home to live in (rather than a rental). We need to take on a jumbo loan 

Obviously want the lowest rate. It seems lowest rate is with contacting banks directly, parking money at them and getting a "relationship" discount. The challenge is how to find a bank with the best discount. Previously I didn't have to worry about it - rates were low, just ask a mortgage broker and they got you a good rate. Now with rates high it could make a big difference. I don't want to call every bank but these discounts are hidden so any ideas?

I am in similar situation as OP. 

I equate STR to ~ Airbnb. however, finding and managing STR seems daunting if both us are working. Are there companies that manage this for you ie. we just pay the money, they have an inventory and they manage it.

 I also have a rental property. My rental property generates passive losses from depreciation

If I invest as LP in passive income generating properties then I presume I can cancel my passive losses on schedule E from rental with portfolio income (K1) from these rental properties. Is this correct?

That seems like free money :-)

How does one find fully depreciated assets that are generating passive income. Mostly I see investment opportunities which have passive losses due to depreciations.

Quote from @Chad Hale:

@Roy Mitle Since they've been there more than one year,  you need to give a 60 days notice of non-renewal.  Also, have you given them notice of exemption of AB1482 (Tenant Protection Act) assuming it applies.

As an update 3 out of 4 renters are moving out on their own. They gave their date as sept1. Ie 1 month before lease expiry.

however one of them wants to stay. And she said she will get 3 other roomates to start sept 1. I’m thinking I just draw up a new lease starting sept1 and change rent amount to higher rent. So we will move the yearly renewal date to sept instead of Oct. 

I have tenants that have been in the property for more than five years. Recently they have started creating issues. The lease is expiring on october 1. I want them out and not renew the lease. I am not evicting them because they are still paying the rent but I don't want to continue leasing to them come Oct 1.

If I give them notice of non renewal long before the lease expires, they will get angry and thrash the place. Can I just wait till the middle of sept and make the rent much larger which will probably force them not renew the lease. or is there any other method to follow other than rent increase. We are not in rent control zone. Are there any legal issues in California against asking tenant to leave when lease expires. 

We follow the traditional standard CA real estate rental form - nothing fancy.

Thx so much Melanie

As I understand it renters insurance doesn’t cover appliances correct? Is there some other ways to frame a correct response. 

I have property in san jose.

The washer stopped working. We sent a repairman within a few days. Repair guy diagnosed said have to replace washer. The next day renter mentioned fridge stopped worked. Had to send repairman who took another few days to go there again (they are busy). I order both appliances. Store will deliver and install and it will take them a week to go there (they are backed up etc etc). So in total ~ 2-3 weeks w/o washer and ~1-2 w/o with fridge

Renter claims this is causing hardship and demand that they only pay a portion of the rent. They claim rent includes washer and fridge working properly. Claim they had to eat out and also they had to use laundromat.

As a landlord in California, San jose am I liable for this? If so, how can I minimize the rebate I give them - if the rent is say $5000, do I say fridge is $100 and dryer is $150 so ok you can deduct say $(250) * 2weeks/1month = $125. or do I say ok send me your bill for food and laundromat and you can deduct that full amount (that will be expensive I guess).

If I'm not liable how do I reply that doesn't have ramifications.

 I created a list on how to vet sponsors for the future. This is based on scraping the internet - I only have 5 years of experience so would love to learn from others if such a list exists or we can collaborate on this message board to enhance. Some of these terms are not clear to me

Also I'm super interested in hearing the average around all these numbers. I put in the numbers my syndicate charges me in brackets. Are these high/low? Is there some source of truth that is published nationally. For instance, I thought their upfront fee is high but have been told that is reasonable.

what is upfront fee...to source, due-diligence etc- (7%)

what is your operating fee through the life of the asset. (0.5%)

what is hurdle rate and split after hurdle rate- (10% and then 50-50 split of profits)

do you have downside protection- (what does this mean?)

how much money you invested by yourself- (5%)

What is LTV (patient money)- (~60%)

For best after tax return can we get max depreciation  and max long term capital gain - (yes)

history of operating partners - (done 13 deals before)

have they gone thru recessions and executed- (yes)

I invested in a syndicate that shows 1231 gain due to sale of some of its properties. Some of the other properties in the syndicate have not been sold so it is not final K1. This shows up in box10 of K1

My CPA says I have to pay capital gains on that 1231 and I cannot offset that capital gain against any other passive losses. For instance I have yearly passive losses from my own rental property (Schedule E). I also have passive losses from other partnerships (K1 box 2).

She claims sec1231 is active capital gain even though it was done by my syndicate. Is she right?