All Forum Posts by: Dave Melton

If your lender won't do the loan with the property in the name of your LLC you might need a new lender. From my experience most lenders don't have an issue with this. You decide how your LLC is taxed but no matte the choice you can still deduct all legitimate interest. I did ha e to send the IRS some paperwork once as some of the mortgages I had in my LLC were ties to my SSN and not the LLC's EIN. When in doubt as your tax professional.

This is called "card surfing". The credit card companies are banking that you won't pay off in the specified time or "surf" the balance to another card. I did payoff a mortgage of about $15k on a card once and paid it off in the allotted time and saved some interest money. The reality is that the interest on such a small amount borders on trivial especially when you consider that it's all deductible anyhow. It's a valid strategy if you have the discipline to follow through, you just have to decide if the juice is worth the squeeze.

I've never been in second position but I have been in first and can tell you that you don't need a license to foreclose in KY. Just a real estate attorney and plenty of time. Iirc about 6 months to get to sale assuming they aren't military.

Sounds like a good problem to have. As long as all your paperwork spells everything out and a good real estate attorney says your papers are in order I'd pick the best tenant over the highest option fee.

That all depends on your lender. Step 1. Find a lender Step 2. Find out what the lender expects

Laws might vary state to state but generally speaking of the judge has ordered possession, your ex has no choice. She is legally ordered to sign the property over. If you still want the tenants out try approaching them first. Explain the situation and they might cooperate. As for gains tax. You're gonna have to pay. It's an asset which has a depreciated cost basis which you increased by deferring gain from a prior proper by way of a 1031. How you filed before and who took what depreciation might get tricky. Find a good real estate cpa. A few hundred bucks could save you thousands in taxes. You could 1031 this one into another property is that aligns with your near term plans. But again the 1031 nearly defers the gain unless you plan on the asset being a part of your estate, might be better to pay the piper now.

What about the comparables? Do your active or sold comparables have cat 5 installed? Do they use mini splits or forced air? You want a product as food or better than the homes you are using as comparables. Without seeing your project I'd be very tempted to gut the exterior walls at least so I could insulate. The added cost might be worth it to potential buyers.

I also don't see the point of an "option fee". Option fees generally are collected when a tenant moves in and locks in the sales price usually for a year or more. If you have a tenant buyer who is pre approved just write up the contract and your tenant/buyer can take that to their lender and proceed from there. They will have to do all the usual inspections to satisfy their lender and the lender will generally select the closing attorney.

Ive never bought a home warranty except when selling a house to unsophisticated buyers. Most of these warranties are largely a commission generator for the agent selling them. I've heard many stories of all the things they won't cover. Just like any insurance it's a math game. The warranty companies spent a lot of time and money making sure their policies aren't likely to have to payout much if anything. It's not something I suspect any seasoned investor would buy. We own property and things wear out and need servicing or replacement from time to time, it's the cost of doing business.

I don't see why changing the locks is needed? If the tenants give you a key problem solved. If they won't give you a key and you break the lock and install new ones so you have a key and things go south you'll want to change the locks again after they are out. If they don't give you a key and things go south you break the locks and install new locks when you get possession.