All Forum Posts by: Allen B.

Could you please cite a source for this statement?

In general no we would not reimburse as we had no reason to foresee that the refrigerator would fail. Now if we repaired it, instead of buying a new and then fridge went out again, then maybe. In the past we would buy used refrigerators and they would almost always fail. So now most houses we rent without or we buy a new one and mark up the rent 25 or 50 bucks.

Personally I would think that, but unfortunately the Fair Housing Laws are not written that way. There is not a best applicant only a qualified one or not. Taking a later applicant over an earlier applicant who meets your standards is asking for trouble. The reason for this is because in the past the minorities were always found not to be the "best" applicant.

Every application we give out has our qualifications attached to it and the prospective tenant should know if they qualify or not. They also know the order as we write the number on their application.

I would highly encourage everyone to actually take the time to understand the Fair Housing Laws. Otherwise you may find yourself paying an expensive lesson called a fine plus damages to the victim.

Most definitely will be short term capital gains which means ordinary income tax rate plus self employment tax on the $40,000. Luckily in Florida there is no income tax to pay.

This will be business income that will go on Schedule C. The good news is that you can deduct business expenses from Schedule C, so you may want to get with a tax accountant and see what business expenses you may deduct.

Our policy is that the first application get a yes or no answer, before we will even look at a second application.

Several of the prior posters in this thread would have a severe problem if a tester from HUD visited and made an application.

You can't take a pool of applications and pick the best applicant. A house is not a job. You have to have written criteria and if the person who applies first meets your criteria then you must rent to them. Otherwise you are wide open for one of the non-selected to file a complaint and most likely win

I don't see how a corporation will help him with current trading income. Trading gains in a corporation do not go untaxed until they are paid out. If he did this same trading in a corporation, then the corporation would have to pay a Federal tax of up to 39% plus the California tax.

Then he would pay again when he takes it out. Cars and housing that are paid for by the corporation would have to be reported and taxed as well for personal use.

One quick way to qualify to offset your regular income would be to marry a real estate agent. If your spouse is a real estate professional of which a real estate agent qualifies, then you are unlimited in the amount of ordinary income you can "shelter".

And since you are in California you are not just limited to the opposite sex in a mate. :roll:

There are good deals in Tennessee. That is my specialty. Unfortunately, there are some real bad deals here in Memphis.

I must get a call a week from an investor that is from out of state that has bought a property from one of these groups that was way overpriced and not in good condition and most likely in a war zone.

The one today had just closed on a duplex. We drove by and it was burnt out over a month ago. The investor said no it is supposed to be occupied. I really wish they would call us before they decide to buy.

If you are going to buy in markets such as this, then it is imperative that you hire a buyer's agent that is looking out for your interest. Even if you do buy from one of these outfits, at least get the opinion of an expert in the local area.

Most states require an annual report to be filed which shows the owners of a LLC or corporation. I am not sure on New York, but this is what an asset searcher would search.

Most people use their attorney. You can hire nationwide services for around $99 a year. I do it for some of my out of state clients who have registered as a foreign LLC in TN as they are required to have a local agent.

Unless you are a full time real estate professional you will find that you are limited to $25,000 in tax shelter from passive real estate income this does phase out as income goes out so you may not be allowed any if you make over $150,000 a year.