All Forum Posts by: Candace McCutcheon

THANK YOU to everybody who has posted on this topic. Y'all have saved me a whole lot of stress and disappointment!

Per contract, my tenants obtained personal property and liability insurance. I am so proud of them! However, while they did request that I be listed as an additional insured, the policy came back listing me as an Interested Party. Is this the same thing? I read on a single website that XYZ Company said that only "additional insured" will give me the protection I am looking for. I have to call them anyway because they misspelled my name. How hard should I fight for this change (IP to AI), if at all?

That is exactly what the investors have told me, and exactly what our CPA disagrees with. I feel secure that those in the industry do know what they are talking about. Perhaps our CPA is not as familiar with this industry, but she will be in time.

Thank you.

Not a number of experts, a few experienced RE Investors vs- 1 expert CPA. I wasn't saying the CPA doesn't know the difference; I was saying that she believes we can use the accrual method. The investors said that we must use the cash method.

We sell only land, so depreciation is not a concern. However, after reading the posts, I think we may prefer to stick with the cash accrual, but I will talk to our CPA and the IRS regarding deferment of the gains taxes. We have been paying those in full each year. It is too much at once when financing 6-12 or more sales each year.

Thanks so much for everyone's input.

Thank you very much! This has been a topic of debate for several months, and I have been shunned a few times for leaning toward the investors with experience as opposed to the tax expert. With that answer in mind, is one method more beneficial than the other? At first glance, it would seem to me that paying all the taxes now would eliminate the possibility of paying higher taxes later.

I have read from several sources that RE investors MUST use the cash accounting method. Our CPA says this is not true. If the state is important, we are in SC. Can anyone confirm this one way or another? To give insight into my concern... Supposedly, when we sell on owner financing, we must claim the full sales price for that year (cash method). This hardly seems right... why would we have to claim and pay capital gains when we haven't even received the gains? Our CPA is the only person that will tell me we can use the accrual method. One in five makes me nervous. Can somebody please give me a definite answer?

I have recently learned that, in SC at least, if you purchase a property from the county tax sale, wait out the one year redemption and take title, you will probably not be able to secure a loan against the property because the title will be clouded by the tax sale. Apparently, the previous title holder (the one who lost it at the sale) can actually come back and sue for the property years later. I have also heard that a little known "process" can produce or create a clear title by way of filing a class action lawsuit. This is about as much as I have been able to extract thus far. Is anyone familiar with this? I would appreciate a full understanding.

Check with the county in which the property is located. The Planning and Zoning Dept should be able to answer or direct all your questions appropriately with regards to their rules and regulations.

I am changing strategy and position in less than two weeks. Well, it's in the process now. It's scary, because it means giving up almost all that I have, which is insufficient for my tastes, to come at what I want to acheive from a different angle. It will be harder, more intense, but my chances are better and I will learn more, faster. Because I easily become complacent, this new direction will probably prove to be the better way. So, my goals for July are:

1. Get organized... and stay that way!
2. Open the mind. Pay attention. There's a lot to be learned.
3. Resist not!
4. Enjoy the ride. It may get bumpy, but that's half the fun.

I tried to just list the web address that references the below quotes, but I cannot. So, at Agents Online Real Estate Idea Center there was a discussion just this past June about abandoned property left by tenants in California. Below are the answers to a question similar to yours... but about renters. So, this may not be exactly the answer you need to go with, but it should, at least, get you started in the right direction to find the exact answer. Hope it helps.

Shaan: "You have to do a personal property eviction for 18 days. You have to post a note at the house & send a letter to the address to see if it gets forwarded. You either store it or leave it at the house. After that time you can sell it or do whatever with it. If it is under what you could sell it for at a garage sale for $300, you can get rid of it now. But its better to be safe than sorry!!"

relady4u: "Check with the eviction attorney for the 18 day letter. Post it to the door and sent it certified mail. If you have to sell the property, the tenant can actually purchase it at the sale. After the 18 days you don't actually have to store it. If it is under $300, have it trashed out. Just make sure you CYA!"