All Forum Posts by: Account Closed

like a swaddled baby.

I see SB 978 is now in the Business and Professions Code, sections 10232.3, 10232.45 and 10232.5.

The way I read it, in part, it is now illegal to sell a note secured by a deed of trust in CA against a single family residence that is greater than 80% LTV, or that requires the note buyer to pay more that 10% of his/her net worth.

Anybody care to comment? I'm thinking hard money loans will become more scarce.

You make it sound like HML's are trying to somehow game the system, I just want to understand so I can comply, that's why I responded to your post. If regulators want to regulate away private money, so be it, I'll go find another profession.

The line between consumer and commercial loans can be tricky, as you point out, especially with SFR collateral. You bring up a good point about homebuyer assuming the commercial loan that then changes nature. The original rehabber borrower can also decide to move into the property thereby changing the character of the loan, it is a risk. I handle this by vetting the borrower in the first place. If the borrower has a history of rehabbing and re-selling then (s)he is probably a safe bet. OTOH, if it's a newbie borrower, they are much more likely to do something like you suggest. It's all about knowing your borrower.

Is there something in particular we should be concerned about wrt to the CFPB?

CFPB = Consumer Financial Protection Bureau ?

I'm guessing they only regulate consumer loans so it won't affect the type of loans discussed here.

How much are you paying to have a simple Corporate return prepared?

I hear people say oh, I know a guy that does it for $120, but whenever I ask a tax preparer they want $600.

Chris: Good point about the multiple entities. I was referring to the cost of A office suite service, not necessarily author's service, I'm sure he is competent.

Good article. I've heard this before from a land trust guru. I wonder if saving $800/yr makes is worth running an out-of-state entity and land trust. The $800 is a minimum, if the entity makes enough the tax would have to be paid anyway. Although the article didn't say it I presume the structure would also avoid the CA gross proceeds fee on LLC's. Maybe I'm a worry wart but I can't help but wonder if the people's republic of CA would, if they discovered the LLC's interest in the Land Trust, access the tax anyway.

The structure does pretty much require the authors service including setting up the land trust, llc, and office suite ... by the time you get done it's not clear there is much savings.

Thanks guys.

Matthew Newman, you and I are in the same city...Northridge. I just heard a local RE attorney speak the other night that seemed like a knowledge guy. He is an attorney and broker specializing in RE. I never used him. PM (however that works) me and I will give you contact info. If you use him let me know how it works out.

Also, there is a local RE meetup group here next Tuesday, I can also give you that info if interested in talking more. I don't know anything about the meetup, just found it on meetup.com.

If I purchase office supplies with my business credit card in 2012 and pay the credit card statement in 2013, is that expense deductible in 2012 or 2013?