All Forum Posts by: Spencer Speckles

Hahaha. I think you’re ready to buy my apartment building, now.

Thought exercise: You can sell the house, bucket included, for $1M. The capital gains ($975k) can be used in a “like kind” 1031 transfer for another property.

The person who buys the property from you can depreciate the bucket over 28 years plus earn interest on it’s contents while it’s in the bank. 

It may be worth continuing your relationship with the police and city council. This sounds like a nuisance property so they will likely put some pressure on the owner. It’s either that or to live with it.

A side note: it might be that the owner is a slumlord, not because he/she is an evil person, but is simply a good intentioned person who doesn’t know what he’s doing.

 Thank you for breaking it down. It sounds like I am not in a situation where it would make sense. For me, the buyer’s interest payments wouldn’t be close to the current cash flow and I’d have to pay capital gains taxes, so I’d lose even more. My other properties are commercial, non-residential properties where I make more with a lot less headache. I’d use the sales proceeds to 1031 into a commercial building. 

Your comments suggest that it’d be better for me to sell it outright. Thanks for your help.

 @Account Closed Your point is well taken and I’m glad you put it out there. I was being a little sarcastic. I’d never do an owner finance with someone I know will fail. That’d be “impolite” :-)

I am selling a property I own outright. I don’t understand why an owner would consider seller financing. I can only think of reasons not to: capital gains tax, loan interest rate less than the property’s cash flow, risk… The only way I could make it work would be to identify a buyer I know will default. Then I could keep his/her deposit money and any capital improvements put into the building. This doesn’t seem very polite.

One way to answer my question is to give me a bulleted LOI with terms that would incite me to finance the sale.

@Chris Seveney complete stupidity? I know quite a few people who invest in $1M properties, myself included. I’m not sure that they are all completely stupid.

@Ethan Reay several people mentioned matterport, which I have not used. I’ve used MagicPlan and it works pretty well for floor plans and so so on 3D renderings

Contact the owner of the “drug house”. Almost certainly, they don’t want the tenant, either.

Great advise @Kristi Kandel. 

Great answer, @Kristi Kandel. I have a good relationship with zoning but we have an unsophisticated council who strictly adhere to guidelines outlined in their Comprehensive Plan and code book, both of which limit C1 uses to restaurant/retail. My building is too large to support such uses in this community so I’ve been unable to lease it over the past two years. This means that requiring me to conform with the permitted uses is an (missing legal term) excessive burden. Thus, I am entitled to lease the building to a nonconforming tenant. I have all the application material and fees ready to submit (tomorrow). My Owner Statement needs to subtly tell them they have no choice but to approve the exception. I want to throw in the legal term as a buzzword to bolster this point.

Approval is especially challenging because the primary care clinic also requires 6 dedicated street parking spaces in front of the building and part of the adjacent mixed-use building, also owned by me. I have letters of support from the two tenants in the mixed-use building, a bank and an insurance company, and the neighboring restaurant, not owned by me, for the exception and redesignation of the parking spaces. 

I know that a legal term for this exists, but no one knows what I am talking about. I’m a little meticulous and write grants (academic) for a living so little details matters to me. However, this a small and arguably insignificant detail so I am submitting the appeal using my own language—“excessive burden”. 

Sorry for all the words.