All Forum Posts by: Varinder Kumar

It may make sense to do two separate cost segregation studies for the two townhomes you own. Cost segregation is a tax planning tool that allows real estate investors to accelerate depreciation deductions and defer federal and state income taxes, potentially increasing cash flow and freeing up money for other investments or purchases. By identifying parts of a building that can depreciate over shorter amounts of time, investors can benefit from accelerated depreciation and potentially save money on taxes in the short term. Cost segregation can be used for investment properties, including rental homes and most second homes.It is recommended to consult with a CPA or cost segregation specialist to determine the best course of action for your specific situation.

Cost segregation increases cash flow for real estate investors by allowing them to utilize accelerated depreciation deductions. By doing this, investors can reduce their annual federal and state income tax payments, potentially freeing up their money for other investments or purchases. Cost segregation studies provide detailed entries in a fixed-asset system for all long- and short-life property, allowing investors to better track their assets and potentially increase their cash flow. Additionally, cost segregation can help investors pay little or no taxes on their rental real estate income. By using the estimated analysis provided by a cost segregation specialist, investors can show their lenders that they are drastically increasing their cash flow.

I just wanted to add that not only do those forms tell you what is wrong with the property but just to the sellers knowledge of anything that they have answered yes to on any of those forms and usually it’s pertaining to if there is something of defect or something that was done unpermitted.

You're at the right place for sure to get info and finding a pathway. I wish I was your age when I started looking into all this haha! start searching through bigger pockets for people in your area, and Im sure there should be a REIA - real estate investors association which you can join as well. Through these channels you will gain more knowledge and understand the field of flipping houses. One tip I can give you is that the money is the easiest thing to come by for flipping, its the deal that's the hard part. Focus on finding a deal that makes sense, and trust me the money will come to fund it. If you have any questions feel free to DM me id be happy to break it all down for you. You're already off to a good start, Good luck!

You should have received a TDS,SPQ, AVID when you opened escrow. These forms tell buyers what is wrong with property according to the sellers knowledge, by law seller are required to truthfully answer. If your agent went based off of these forms in what he told you then his not liable. His only going based off of info which was provided by seller, which is what you would be doing as well. Also inspection contingencies are there for a reason. So somewhere, someone dropped the ball. I’m sorry for your experience, but take it as a learning lesson. Feel free to reach out to me with any questions in your future endeavors.

treat it as any other sale. the owner of the trust will sign any documents they need to release interest. they may refer to their attorney who created the trust for assistance or a trust attorney but otherwise its pretty straight forward. Escrow will also guide you on what you need to do. My current listing is in escrow and is owned by a trust.

My neighbors home is rented out and it caught fire by fault if the tenants and because of it it burned our fence. We filed a claim with our insurance and provided all of the proof and documents they requested. So our insurance covered the expense for the new fence. But now the landlords insurance is stating it is not the landlords fault and it’s the tenants fault so we can’t go after the landlord. The landlord doesn’t have renters insurance. I don’t find this to be just. Because now our insurance is going to go up. It’s not fair and I think the landlord should be held liable. 

any advice on how to go about taking care of this? is this legal? Any help I would appreciate thanks 

Just put up walls and turn the space into usable space. Possibly for personal use, storage, possibilities are endless. I looked at 9 bed facility before which had a similar layout, but in my case it would have been more beneficial to me to build more bathrooms. Just out of curiosity, why don’t you want to run it as a assisted living facility? 

@Chris Seveney

I think my friend said she’s getting 8-9%

@Jay Hinrichs

I’m wondering what happens if the borrower defaults? And also what’s happening to the 80k the client paid to buy the note, does that get held as collateral in a holding account until the term of the contract between client and sierra is over and they get the 80k back? So the client doesn’t really own the note then.