All Forum Posts by: Account Closed

@Ashish Acharya,

What would my "salary" be based on? 

I have a S-Corp for a separate business that i operate and draw a salary for my duties w/in the company...but for a short term flip I wouldn't really have a "job" to pay a salary towards. 

I've considered getting a RE license...which I don't currently have. I have a partner (broker) who would hold it. Would that be an advantage in this situation? Take a portion in commission?

I plan to flip a multifamily property I have under contract (have a buyer for it already). The plan is to do a dual closing. 

I'm looking to limit my tax exposure. 

I plan to purchase another property to hold in the near future. Can I 1031 this MF that I never really "own"? 

Is there another strategy I could look at?

@Brian Eastman I believe I'm following you. I have two SDIRA's investments now and am considering a third. This one would be a share of an LLC that would own several multi family properties. It, the LLC, would have debt. If I owned a percentage of the LLC and it was, say, 80% leveraged, wouldn't my UBIT would be bases on 80% of the income.

@Dmitriy Fomichenko I'm curious how a Solo 401k exempts one from UBIT? Can you site a source? I'd love to be able to learn more about this as I'm self employed as well.

I researched a few and landed on Quest. I've had several transactions with them and found them very professional and accomodating. Their pricing seems fair to me. No complaints.

When I first got started investing I audited an Accounting 101 course at a local community college and it was invaluable. QB is great if you understand basic accounting principals which are not always intuitive. When it took the course I already had a Master's degree in and unrelated field. The course was time very well spent and today I run several companies and sets of books daily.

@Joel Owens, that's an interesting thought...I hadn't considered asking if the existing lease had a ROFR in it...i wouldn't think so, but it's worth asking. I have a contact for the tenant that I'll follow up with. Thanks!

Thank you @Omar Khan, I appreciate it. It's good advice.

It's just frustrating. There is a building, that I can use and willing to pay for, that will sit vacant for over 8 years. 

Thanks for your reply @Account Closed. 

I haven't personally made contact but over the past 3 years I've had two strong commercial realtors make contact to the owner's representative on my behalf. In the first instance, we made some good headway and had send personal feel good stories about our business and a handwritten note from myself. This proceeded a bona fide 7 figure purchase contract. No response from the seller.

Shortly thereafter the seller bundled this asset with about 60 and attempted to sell as a package...unsuccessfully. 

So about a year ago I - again - tried to cherry pick the vacant parcel with a different realtor. They too had a different representative.  After several conversations in which their rep said they weren't interested in selling...we made another 7 figure offer. (both probably had $50K earnest money). Again, nothing. 

Recently made another call...they aren't interested in selling.

I'm anxious to control this building in the long term as it effects my business. And there are others in this market that I'm sure have made offers (one had an option for a period as they tried to find a new bank to take over...it fell through several years ago).

The problem, I think, is that based on the lease this asset is worth $1.6M - $2.4M somewhere between a 6% and 4% cap. Vacant, it is worth about $750K. 

There is 4 years left on the lease in which the owner's will net around $392,000. Presumably $750K+$392K=$1,142,000 should be an attractive offer (I'd think). But I'm sure I'm not looking at it like an institutional investor. 

Any ideas how to approach this differently? I'd be happy to buy an option, sublease with a first right of refusal, etc...