All Forum Posts by: Bill B.

I don’t believe most “clawbacks” are due until you eventually sell the property you 1031’d in to. I’m 90% sure you wouldn’t owe the $34k the day you sell the Oregon property but rather the day you sell the new property without doing another 1031. Just keep doing 1031’s until you die and I don’t BELIEVE you will ever owe the $34k. @Dave Foster would know the answer…

What do most MTR not include that STR does? Do you pay for utilities, household supplies, cleaning, I assume towels/linens and bedding? I was assuming your provided the same as STR but then wasn't sure about utilities. I've seen people talk about getting $400/mo more in rent not considering that utilities might run that much. Thanks.

@Ivan Terrero Really? There are banks selling off performing notes at above market interest for 30-40% off the balance?  Can you send me a list. Those I would be interested in buying. Hard to believe they would give up 5-10 years of income to liquidate but I’m happy to hear you’re saying it happens.  I don’t think I’ve ever had a buyer offer close to 80%, much less 90 or 100%. 

How would they not know? You get 10+ offers per week every week. 

Crap like:

Oh your note is 60% LTV with 3 years of solid payment history at 8% interest?
  . 
I can offer you 65% of the note’s balance IN CASH!  
  

Have any of these offers ever not been scams? I swear you could say your loan was to the US government and they'd offer you 70% of the balance. Maybe you could start the first company that actually offers 100% of the balance for well secured loans paying high returns. People are putting their money in 4% CDs when there are Notes paying 8-12% interest and the DREAM would be they stopped paying because of the LTV.

So. If like in Las Vegas. They just sit out in the street for hours shooting off fireworks without entering the house there’s no fine? Seems like a weird situation. Unless one drone can watch several blocks at once that’s a lot of hover time.  The landlord should start a gofundme. Every other “criminal” doesn’t for legal defense and vacation funds. They’d probably raise more than $25k. Or reach out to one those free civil rights violations law firms. At least they should get a copy of the video they can use when suing the tenants for reimbursement.

I hope all the best for them. Just another example of our two (or more) tiered justice system that is NOT providing “equal protection under the law.”  

If you can’t arrange for a refinance in 5 years is the seller allowed to take the property back and everyone loses 100%? (Imagine you had made this purchase 5 years ago. Today you’d be trying to refinance at rates 3-4% higher, or double what they are today, whichever way you prefer to do the math.) would it make money, and would a bank finance it today for 9%? If you have to fire sale it for $5M to avoid foreclosure how much of the $1M loss are you expecting to cover?

You need to cover the escape from the deal 10x more than the easy entry. Imagine the city decides it doesn’t want you there. There’s another hurricane that shuts it all down. They outlaw the type of property, or suddenly increase code enforcement, or decide they need a new fire suppression system and escape system, and an elevator? Where does that money come from? Show your hopefully investors that you’re risking as much as them, have backup plans and funds, and list your experience dealing with this type of property and the local government. Otherwise you give off a “I want you to take all the risks while we share the rewards”  vibe. 

Good luck. Hopefully you contribute to fixing up the property and the area. 

Talk to @Dave Foster. I’m pretty sure he could find a way it would qualify. Why did you buy it? Because you knew the value would go up? Like an investment?  Investments can be disposed of using 1031’s. 

SMH. Knowing California you can’t pass the fine on to the tenant and you can’t evict them. I guess the true lesson is make sure you light all your illegal fireworks in front of vacant properties. Lesson learned. 

Hopefully the fine is big enough that the landlord will challenge the fine being passed to them, if it can be collected from the tenant, and if the tenant can be evicted when they don’t have $25k laying around. 

Ps. Ridiculous that the fine is double, triple, quadruple? The fine for drunk driving or probable 10x driving 100 mph through a school zone. All with no proof who did it, only where it was done. I’m sure they went after the homeless just as hard as the property owners. Maybe they can start charging car theft victims with all the crimes their cars commit while stolen. 

Either try the abandonment, or failure to pay (or both) eviction.

If you weren’t in CA, and certainly you can ask the same lawyer. Can you just let the current lease expire, or end it with proper notice and then write the remaining tenants a new lease?

Maybe the lawyer could write the MIA tenant saying you free until owe $X for the missing months of rent. We would be willing to waive that if you sign thsi document saying you ended your tenancy as of date _____ and anything left behind after date ______ may be discarded or donated at remaining roommates discretion?

I can’t see turning a $200k tax free gain in to a taxable rental you hate. Just putting that money in the bank is worth $8k/yr in a guaranteed CD. If you plan to buy a new home it probably saves you $12k/yr in interest plus lower origination costs. 

It would be one thing if you said it was done and it was your pride and joy and had brought you only happiness. But why turn it in to a rental so you can give the government $100k in taxes just to be reminded of the struggle.