All Forum Posts by: Chris Corbin

@Michael Plaks

@Dave Foster 

TICs and DSTs is exactly what I was looking for, a 1031 exchange into a passive investment. Thanks everyone for your help. 

Hello- 

I have been spending a considerable amount of time calling multifamily owners in my farm area and keep running into the same problem. Many of the owners would love to sell their property but have owned it for 30+ years and don't want to pay capital gains on the sale.  Their response is that they are going to wait until they pass away and their children will inherit it and take advantage of the step-up basis to avoid capital gains.  1031-exchange is not an option because these people are old and don't want to own other property.  

I have been reading about seller financing via the creation of a note.  The seller would qualify for installment method of reporting capital gains. If I am reading it correctly this would reduce taxable income significantly but still not to the effect of a step up basis in an inheritance scenario.     

I am meeting with an owner of several properties on Saturday.  He purchased them in 1950 and therefore would pay significant capital gains tax on the sale.  What argument can I make that it is in his best interest to sell them to me? 

Thanks for your help!    

Nicholas thanks for posting this it was very helpful. Do you have any books you recommend reading on structuring partnership? Are you going through a lawyer to put together all the LLC's?

Thanks.

For rent and expenses, I recommend https://cozy.co/.  Its free and your tenants can pay you online.  I have yet to have a late payment since I moved to this software. 

For repairs, it depends on the quality of the rental.  Most of my rentals have 1-2 maintenance requests per year/ per unit. Agreed don't over think it and handle on a case by case. 

I don't know about Florida. Best practice is to take it outside.  If possible I usually vent them out a side wall. 

Hello bigger pockets. We are about to close on our fourth rental property in 4 years. All of our deals have been off market as the MLS is too hot hear (Ames, Iowa). We want to purchase more properties in the next couple of years. At one a year word of mouth is not going to cut it. We are going to try some strategic direct mail pieces. My thought here is to look through the county property tax records online and identify our target property and the low hanging fruit (small land holdings with transfers 10+ years ago with some value add opportunity).

Two Questions:

1) Have people had success with this strategy?

2) What kind of CRM/ Database are you using to record the sending letters and property owner information -  conversations, property ownership etc.. 

Thanks

Does your lease state anything about the negligence of the tenant?  The following is ours: 

"Landlord shall be responsible for repairs in or about the Leased Premises unless caused by the negligence of the Tenant. IF any required repair is caused by the negligence of the Tenant or Tenant’s guests, the Tenant will be fully responsible for the cost of the repair and/or replacement that may be needed. The Tenant shall properly use and operate all electrical, cooking and plumbing fixtures and keep them clean and sanitary. Tenant agrees that no painting shall be done on or about the property without the prior written consent of the Landlord."

I would say that you could bill them back for the service call even if it is not in the lease.  You may want to check your state law. 

@Samuel Odeyemi - Any help here?

We use Cozy.co  

Cj C. - Is the unit marketed and shown before the existing tenant moves out?  I manage a 300 unit complex and all of our units are put on the market before the tenant moves out and 99% of the time units are rented prior to existing tenant moving out. Most units are turned within 24 hours and ready for the new tenant to move in.