All Forum Posts by: Craig Clark

Thank you both, for the response.  It was a huge help.  

Hi BP, 

I am hoping this is a quick and easy question for the community.  Profile:

Investor owned LLC 

-LLC owns 5-6 properties

-Investor normally takes every legal write possible so LLC DTI is high

-LLC normally has an annual paper loss w

Investor Personally

- Investor owns 2-3 properties not in the LLC

-Equity in property 1 is over 70% and equity in others are around 50%

-Investors personal DTI is around 15-18%

Based on what you see above, the investor would like to tap into the equity in one of the above personal properties. Would the DTI of the business or the fact the Investors LLC operates at a loss on paper hurt the investors chances of tapping into the equity on the personally owned properties? It would obviously be on the investor's tax returns but would the investor even need to disclose the business's holdings to the bank when applying for a loan to tap into the equity on the personal property? We are looking for options to help continue portfolio growth.

Thanks 

Hi Bp, 

We are looking to sell a few under performing properties next year so we can redeploy the equity into better investments and we had some questions.   Yes, we are going to talk to our CPA but we are filling out our options. 

We have Carryover losses from the previous tax year.  

Can carryover losses be used to offset some of the capital gains from the sell of the property.  We are not going to shy away from a 1031 but  we just want to make sure going through the hassle of the 1031 process makes sense for us.   

For example, if we have carryover losses of $50,000 but receive a net capital gain of $55,000 and those losses can be used to offset the net gain, doing a 1031 for the extra $5,000 doesn't seems worth it. 

Anyone one have any thoughts and/or links to IRS guidelines they could share. 

Thanks

I keep missing this. Soon as you decide on the date for August, let me know!

I love this community.  My lack of knowledge on these things would kill my dreams.  Thanks again

Hi BP, not sure if this is the right forum for the post; but, forgive me if not. We have project were we are looking to convert the covered patio in the backyard to interior living space, adding an addition 150-200 sq. ft. to the interior. We would be removing apportion of the existing exterior wall leading to the patio and building up a new wall around the patio and finishing off the interior to match the existing interior.  We will not be adding anything to the additional space other than drywall, tile, lighting, and an exit door to the backyard.  

In order for us to do this, the city (Dallas, Texas area) requires a full set of blueprints/architectural drawings and this is our first time doing an addition.  We received a quote for $1100 and that just seems like a lot of money to put a box on a piece paper.   I attached a few pictures showing the existing layout vs what we are looking to do. 

Does this seem like a normal quote for what we are looking to accomplish? 

Do you guys have any other suggestions for us other than skipping the permitting - the HOA here is a pain in the *** and they check everything?

A small group of investors and myself did a good amount of research on the Cleveland market just over 18 months ago and found it to be very attractive for cash flow.  We ultimately decided to go in a different direction but as with any out of state market, I can not stress this enough, make sure you do your due diligence and if you are going to trust new sources or those you have not worked with previously, be sure to verify their claims.  I would also suggest that you save a little extra money for traveling to the subject market your are interested in to actually get eyes on potential prospects.  You may find taking a trip there will save you way more and provide you more education than it actually cost to take the trip. 

Hope this helps

Hi BP, 

I have a short term rental in the Pittsburgh area and according to my CPA, it could greatly benefit me to have a cost seg study done for taxes.  Anyone have any recommendations?  I would love to reach out to a team recommended by the community.  

Thank you 

Hi BP, 

Our team is currently working on a new ground up development and shopping for Mortgage Brokers/Lenders. This project will be done of the course of 3-4 phases so a great partner we can build a long lasting relationship with is ideal. I would to vet any recommendations the community may have.

Thanks in advance