All Forum Posts by: Chris Carruth

Need some guidance....property is a 3/1, 1094 SFH. PP 75k, ARV 125k. Original intent was to lease with market rents in that area 950-1100/month. Minimal rehab - in great shape inside, needs paint outside. Unoccupied rental in city is 5%. Exit strategies:

* Rent....at today's DSCR interest rates. free cash flow, after all expenses/reserves, is in the 200s - not great.

* Sale to end buyer at full ARV with 1 pt interest buy down credit at closing to incentivize purchase

* Lease w option at HML+2 pts, 2 years minimum, option 5% non refundable, tenant responsible for all repairs

WHAT WOULD (YOU) DO!!!

Brought rental 2021, rented 2022. In looking at tax deductions, it appears that a business doing under $25M can deduct all expenses, including remodeling materials and labors, versus capitalizing some that are required if over $25M in revenues. Any tax experts care to chime in?

Need RE lawyer to review very simple two paragraph doc for collections attempt. Not a court case, exploring how to recover 35k plus from crook contractors using collections first. Location AR.

Looking for knowledgeable CPA who can accurately and legally do federal tax returns for single member LLC. Currently have a contrqct preparer but do not think she is knowledgeable enough regarding real estate.

Facts incase a lawyer, agent or title company can help get title cleared before 9/31:

A & M Painting lic# 042685

Summary below, with links to actual relevant documents:

• A&M signed contract 1/17/2023 with detailed scope and images of comparative finish out required to meet scope. (https://drive.google.com/file/d/1lH6tudlAGdF7cy86JGKBWezE4ECFQWKS/view?usp=drive_link)
• 3rd party inspector, with 40 years of direct construction experience, who does no work for us other than inspect work compared to contract/scope, hired to inspect work along the way, as is standard process.
• A&M failed every inspection, with Defect Notices sent stating issues found and given cure time to remedy, as contract required. (Example of one such notice https://docs.google.com/document/d/1C_GH9t5iQbV85DP2Vq1yDety... failing second inspection, A&M signed agreement waiving final payment should they fail inspection again. Additional photos of failure and required finish added. (https://drive.google.com/file/d/1NwnHYbWTdmCKlT2E95vql3yaRYn... failed 3rd inspection and was terminated and no trespass notice issued.
• Inspector documented interactions/findings in case of subsequent actions (https://docs.google.com/document/d/1cUvHWg4FIGrAsRHGP9swDAfO... payments made with payment provider as we then had to hire another contractor to redo his work at cost of $2,500. This credit was subsequently reversed by provider – end result is A&M was paid as can be easily verified. The final payment was not made as A&M agreed to waive as stated above.
• A&M filed illegal lien during this process as follows:
  • Not issuing pre-notice as Arkansas § 18-44-115 - Notice to owner by contractor, requires. Filing without same is punishable by fine, restitution and jail.
• Multiple demonstratable falsehoods on lien description, including that no issues were found, scope was met, and was prevented from returning. (https://drive.google.com/file/d/1reXULvjVOVzM7nQoL1cfd0ECHFp... affidavit, stating all claimed was true when in fact not – another lie.

At this point, A&M has slandered the title, frauded the court, committed perjury and illegally filed lien, risking fines, jail and loss of Arkansas Contractor License.

ok so looks like a fraudulent lien wil result in a foreclosure and no one and no agency and nobody can stop it. real estate. crooks haven.

re bondingn around....have to pay full lien amount plus premium and have all of it tied up until lien expires...thats about 7k tied up to let a fraudulent lien expire...the system protects the crooks. Typical.

Trying title companies

Despite being paid, contractor filed line. Completely fraudulent. How do I sell or refi with title clouded? 

Perfect storm . Attempting to extend existing HML or refinance from HML to DSCR. Contractor has filed blatantly illegal and fraudulent lien by law and by claim. Can't just pay because ALREADY paid the crook. Don't have time to go thru lawyer. Looking for title company who will consider and insure around fraudulent lien.