All Forum Posts by: Burt L.

Thanks  - I appreciate an answer to the thread question. I looked at the process  at Track1099 and it looks simple. I knew there was little cost-benefit  in chasing down the specific forms and  doing printer set-up hijinks to save the $4 dollar fee. Just what was sought.

I will avoid the flavoring about any impropriety and certainly do appreciate the company name provided. The tax recommendation came from quite a high level and I just have to execute it.

As already mentioned, I am comfortable with my tax position. Please keep the thread on the subject posted in the subject line and let go of using this thread to garner business with revenue ruling citations from the 1950s.  I will have the matter solved by the end of business Monday.

I am comfortable with my tax position, but I can appreciate your reply.

The deadline for issuing someone else a 1099 is the earlier deadline. Its only fair to give people receiving the 1099 ample time for tax prep.   If issuing oneself a 1099 to state what I am saying is reasonable compensation for an S corp, etc.,  there is an extra month. I may have to do the manual approach but still have a week.

For 1099s issued to yourself for your compensation of an S corp, one has until the end of February instead of the end of January. I saw an ad at BP for processing 1099s but missed who the vendor was. I also called a local payroll company called Paychex but they don't do 1099s. As I don't have employees I don't have to do payroll other than pay myself on a 1099 and of course, make quarterly estimated payments.

Can anyone recommend a company for this? I don't want to have to get the special three-colored forms and spend the good part of an afternoon or day trying to get it to print correctly in each of the boxes on all of the different copies.   If I thought I could handwrite it in, it would be done already.  

Any thoughts on a company?

In  working in a strong market, I find that using the time honored question of - If I pay cash and  close quickly, what is the least you would take? - kills deals as they know this is desperation pricing and they aren't desperate. I also avoid asking - Whats your situation? - as its so well known that this compromises a persons negotiation.

 Very few of my deals have come from desperate people.  It is so easy to sell a property in any condition currently that there is little distress other than probates or foreclosures and I don't have the cash or stomach for blind auction buying. Absentee owners and high equity owners just have too many other options.

So I work with some of the following questions, unless someone is just tire-kicking and I do use the usual questions above  to draw things to a close. Here are some of my questions to begin to measure motivation:

1) What is the timeframe you would like to close on the property in?

2) Have the tenants generally been well-behaved?

3) Are you happy with the management companies performance?

Another related topic is how to express that mine would be a time-sensitive offer as some think its a standing offer and they can shop around and get back at ones convenience.

What are your favorite questions to measure seller motivation?

I contacted an owner of an abandoned house that was hit by a car some years ago. They aren't interested in selling now and are in periodic trouble with code enforcement. The next door neighbor has two young daughters and is fed up with the vagrants going in and out of the house. It has had the electrical wiring stripped and the utility company has removed the electric meter recently.

The neighbor has pictures of the damaged wall before and after the owner personally removed about twenty asbestos shingles where the building had been hit and he has collected some pieces he picked up off the gourd and has put them in a plastic container. Of course, there is the possiblility its not asbestos, but it is a 1950 house and it sure has the appearance of asbestos.

There are about twenty other random shingles that have fallen off in on other parts of the house. He has asked me to find the proper authorities and go with him to report the matter. I presume the house would be encapsulated with many warning signs that would at least stop the vagrants, vandalism, and graffiti.

I called the national EPA phone line, and they told me to call the Colorado Dept of Public Health. They have a tipline that anyone can call and leave a tip and remain anonymous. My question is whether the before and after pictures are relevant and if the owner would get a penalty for intentionally removing the shingles. - of course this would end making an anonymous tip to the Dept. of Public Health hotline. The owner told me they had some other boxes of old asbestos shingles that they were going to replace them with, but so far has only done the removal with no replacement and doesn't care what the rules are. I have no idea what will happen once these wheels are put in motion. It is an intentional disregard of the other neighbors safety and well-being.

I realize this would increase anyones rehab costs, but at least the house will be addressed in some manner and someone will likely rehab it. The owner doesnt live locally and has been making excuses for years. Would there be any incremental penalty for intentionally removing the shingles and are the before and after pictures relevant? I believe the present situation would be a problem regardless.

Slower on this than the continental drift- but I was able to find support that it was a legal three-plex and it had a happy ending for everyone except for the usual misbehaving tenants. I don't recall what the crucial document was, but the city had it in their records after I found the right department. It was not correct in the assessors records at that time, and in just rechecking now it is still very wrong.

I obtained the crucial info and the seller and their insurance company were both satisfied- sometimes its worthwhile to wade through the different government offices.   

I have been working with a seller about a house that has had their relative living in without paying rent, and the relative has treated the house badly. The owner would like to sell and I haven't been able to see the house as the resident is away and the owner doesn't live locally.

In speaking with the seller, I was told quite happily that now there is someone else  interested in buying the property due likely to more direct mail and that both parties can see the property at the same time; I cringe with each passing mail day at how many more may appear.   

What might be some approaches others use to position themselves better and avoid a bidding war? Some ideas might be not being the first offer, showing solid proof of funds in my own name, a larger earnest money deposit, short closing date, asking if the other offer has an assignment clause whereas mine doesn't,  or not sending a signed offer - as Sean Terry suggests. He explains that when one has a signed offer, its easy to go back and forth getting higher offers. But if its not signed and you agree to sign when agreement is reached you wont be upsold so much.

Any other suggestions on how to better your negotiating position and avoid bidding wars?

I forgot to follow up on this - the other wholesaler couldn't find a buyer and I got the property and did sell it. When I went over after signing the contract, the other wholesaler was still showing it with an expired contract.

The seller told me on the phone to call the police, which I relayed to the other party in real time. Never saw anyone take a lockbox that quickly, and I got a new pair of sunglasses too. It was all a little too exciting for me.