All Forum Posts by: Aaron Moayed

I specialize in affordable housing and HAP contract deals. Let’s connect. HAPs have a ton of value and that person is sitting on a gold mine. You are able to sell hap contracts, as well. Happy to chat more.

Quote from @Emily Rolando:

Hi there, I'm closing on a 6 unit property at the end of March which is 100% occupied. What tips do you have for building rapport and relationships? Example letter you have sent to existing tenants or specific phrases you've found useful? Other actions or things you've done to start off on a good foot?

I've noticed those principals/owners who build rapport and relationships with tenants tend do have poor investments (i.e., they don't raise rents, etc.). I would be careful of involving yourself too much on a personal level. A simple introduction letter would suffice - maybe include any positive changes you plan to incorporate (would ensure they're high probability of happening).

@Bruce Woodruff - what does that achieve?

@Bruce Woodruff - You’re from Arizona. Are you sure…? We have statewide rent control with eviction preventions.

In California, if I have an SFR property I want to sell that currently has a m-t-m tenant, I'm I able to evict the tenant as a part of the sale of the property?

Seeing if the SFR can be sold to an owner-occupied rather than investor. Use change allow for kicking tenant out?

Thanks.

If a seller wanted to take some cash (boot) out of a sale via buyer's passthrough, does this disqualify the seller's ability to 1031 exchange, or is that simply tapping into proceeds after downleg close that disqualifies an exchange? My client wants to use some of the money on a passthrough deposit, and I'm seeking clarification on if this is possible without disqualifying the 1031. Thanks

I believe I will be initiating a 1031 Exchange on behalf of my client soon (offer is submitted on Upleg), and I wanted to get some clarification on two questions:

QUESTION ONE:

She is low on cash for reserves in her bank account, so she will need some passthrough money from the buyer of her downlegs (she needs reserves in bank for loan on new upleg).

Does this passthrough need to be first transferred from escrow to an intermediary account then her bank, or could it be transferred to her bank from escrow (skip 1031 intermediary account)? This will be boot/a taxable event, but I am trying to make sure that doesn’t ruin the whole exchange and that she can still proceed with an exchange with the remainder of the proceeds. I want to make sure any transfers don’t mess the whole exchange up.

QUESTION TWO:

She has three properties under contract that are her downlegs. One property is in an LLC, another under her name with no middle initial, and another under her name with middle initial. All three are solely owned by her.

Does she need to put the one or two uplegs she's getting under an LLC? Can she facilitate this transaction under herself or any entity because she's the sole owner and taxpayer? Summed up, she owns all three by herself, she wants to exchange into 1-to-2 uplegs – as long as she's sole owner on downlegs and uplegs, doesn't matter?

Thank you very much for your expertise.

@Dave Foster

Great. Thanks, Dave. So basically, if Downleg #1 closes and identifies a property, then it’s day 55 and Downleg #2 closes, 1031 for Downleg#2 can identify that same property, and now both properties are on the 180-day schedule of Downleg #1’s 1031 timeline?

Hello,

If I have two downlegs that are closing at different times and I am 1031ing both into one upleg, how does the 45-day/180-day timeline work? Are they both on their own timeline/overlap? Is it strictly based on the first one's close of escrow?

Thanks,
Aaron

@David Lyons

And no problem! I was going for a walk at the time. Headed to the gym now! Catch-up exercise with day off. Ha! Once Covid cools down, you may look into the substantial rehab just-cause eviction if the building needs some work. Good way to get tenants out and I’ve seen a lot of slum lords do this to get tenants out and gentrify an area. Morally questionable in some cases, but it works if the numbers make sense.