All Forum Posts by: Steve Morris

"My next step is buying a house cash. Do I need a real estate agent for this? Or is there a way to go it alone?"

If you don't know how to draft or understand the implications of a sales contract, I'd hire a RE atty or a KNOWLEDGEABLE broker.  You have one less contingency with NO financing contingency, so you should be able to get a better deal with cash.

I'm a broker and y'know what, you're right there are incompetents and slimy brokers.  Sometimes I've told clients I'm not an expert on some types of property.

So I'm 100% on point with your takeaways.  I see far too many people that don't understand what they're getting into and depend on the kindness of strangers - Which sometimes works and sometimes doesn't.

I'd count your costs as tuition, but you seem to be aware of what goes into deals, so you'll do OK from here on.

Unclear, why would you care about taxes from CapGains if it's funded out of a self-directed IRA.

Also, remember that Depreciation Recapture (if you don't 1031 for tax deferral) is 25% on what you've taken when you close.

Sometimes, doing cost segregation doesn't work in your favor, but I would consult with a tax professional if you're trying to figure out stuff.

I appreciate the tribal lore on these forums, but I'm not a CPA and there are a few others that are not.

Well, Al wiring was popular in the 80s.  Main issue I understand is that the gauge was sometimes too small.  This would be most noticeable on things like electric ovens and clothes dryers that draw a lot of current.

Too much current thru too small a wire causes corrosion, especially at junctions with dis-similar metals - Like the connection at the circuit breaker.  In most cases not a problem, however, paying an electrician a couple of hundred to look would help you.

Breaking news - Politicians don't care about landlords.  More tenant votes than landlord votes.

"I mean, how much do you expect the interest rate to change if it does? Enough to make the whole deal not pencil out anymore?"

Here's the problem today, you lose the rate lock and banks are a lot more nervous than 90 days ago.  This is reflected in rate quotes which have gone up a lot and until we resolve COVID will stay up.

Buy the deed means what?  As noted, to get a tax deed (at least in OR), they've skipped on taxes for 3 years.  Then you get to foreclose on them which is time/lawyers.

Not really clear on what you want to do.  If they leave of their own free will great.  However, if you're like OR, you can't evict them until 1 Oct (I think).

Why not sign a lease and have them pay rent to the new owner?

Like with apartments, buyer assumes existing leases and honors those.  Tell the tenant, nothing changes per the terms and length of the lease.

Buyer has to honor the lease since it pre-dates the sale.

If you really want the tenant out, then, as seller, it's up to you, maybe cash for keys.

However, if you're honest, it's not that tough a conversation.  Just tell him you're selling the place.

No fees or points upfront either and no other recourse than the property.  Sounds too good.