All Forum Posts by: Alexander F Pollock

Hi, I own a free and clear property in Gloucester County NJ with my wife and her parents, and want to put it into my LLC. From what I've read, all I need to do is fill out a Quitclaim Deed, sign in the presence of a notary, and record it with the county clerk where the property is located. Does anybody have any advice on this subject, anything I should watch out for, is a lawyer necessary, does everyone have to sign the deed, or is it a straightforward process I can do myself?

Thanks,

Alex

 That's a good point as well. We'd have better control. We have 2 more years on the lease so we'd have time to find another building. They may even let us break the lease whenever we find a different property if they have plans for the building.

 I'd been contemplating getting out but it's been fun growing the business so I'd like to continue growing it. The easiest way to do that is with more space and more teachers. Eventually if I stop teaching myself and just have others working, I could potentially sell it, or I could continue just running it with just a little teaching here and there.

 He purchased through a 1031 exchange so he likes the idea of selling to me because I can wait until he's ready to purchase the next property that he'll roll the 1031 into. Doesn't have to put it on the market and can wait until he's ready.

Hi,

I have the opportunity to purchase the building where I run my music studio. Off the market, the owner is in a 1031 exchange. He's open to selling it to me. He's currently looking for another property to roll over into. 

It's an old brick triplex (1909) in the middle of Kennett Square PA. It's a great corner location just a block from downtown. Each floor could use some remodeling but is in okay condition. Some delayed maintenance I imagine based on things we've noticed in the year we've been there.

The first floor is commercial and the 2nd and 3rd floors are apartments.  I use the first floor to teach music lessons with my wife and a college student we hired. We want to hire more people to work for us but the layout is odd and someone would have to walk through another person's lesson to get to their room. I could fix the layout with a bathroom renovation while creating a hallway to separate the entrances to different rooms. This would create a 3rd studio for us to have someone teach out of. 

At his asking price the building would only be positive $74 per month but by renovating the first floor slightly to open a 3rd room We could make $144 a day with another teacher working 4 hours. If we had the room at max capacity (4 hours a day, 6 days a week) that would be $44,928 a year for our business. (Profit before taxes)

There's also the potential of renovating the basement and adding another 2 studios which could make a max of $134,784 per year for the business.  (Profit before taxes)

On top of the business growth, the 2nd and 3rd floors could have some renovations done eventually to increase rents. 

We could really use the space to grow because we are essentially maxed out with little to no room for more students based on our current schedules. 

There are also the tax write-offs I could take by purchasing it through an LLC and renting it to myself.

It seems like a good idea to me even at the current break-even cash flow because of the room for growth.

What are your thoughts, should I buy it?

Thanks,
Alex Pollock

Has anybody done seller financing with a property that was a 1031 exchange? I'm looking at a triplex that the owner has had since 2003 and was part of a 1031 exchange. They tried selling last year but couldn't find anything to buy. I really like this property because I can use the downstairs offices as a studio to teach music from, there are 2 apartments upstairs, and it's less than a mile down the street from where I live. I can offer the seller flexibility since I'd be willing to wait and understand the constraints of a 1031 exchange. I did find this blog about how there are two ways to do a 1031 exchange with seller financing but figured I'd see if anyone had any thoughts.

https://www.accruit.com/blog/s...

Thanks

I completely agree with everyone but wanted to get others' thoughts.

  Rent is $2,400. The late fee is %5, $125 with a $ 5-a-day escalation. This is probably the 3rd time they've been late. The first time, the fee was waived, 2nd time they paid. 

The tenant would like to use their security deposit towards May rent because May's late fees will cause them to be late for June & July. They would have to refill the security deposit, which would just cause them to still be late and probably incur more fees. Their lease is up in September. They do have a cosigner because of bad credit.  Should the cosigner pay and work it out between themselves? Thoughts on allowing them to use the security deposit?

Thanks in advance.

I get copies of the water bill for the townhouse I have a tenant in. I got a final notice because the tenant hasn’t paid the bill. He scheduled his rent payment yesterday. I confirmed that he did receive the bill but he didn’t mention it getting paid.

Utilities are in their name but what’s my responsibility if they don’t pay and the water gets shut off?

First property. My tenants kid broke the seat cover off of one of the toilets. I’m going to replace it myself. Should I send them a bill for the seat and my time or just take it from the security deposit at the end of their lease?