All Forum Posts by: Eli C.

Any experts here on LIHTC? Looking at a possible rehab of affordable housing in Indiana. The deal works without LIHTC, but would sing with it. Between acquisition and rehab, looking at about $9m of qualified expenses. I know there is a process to be awarded the tax credit and a limit on the amount, but that is about all I know and not sure the best place to start.

Call more banks. Expect at least 75-80% LTV and 15-25 years. Rates will be higher for longer term fixed rate loans.

I would be nervous about Delhi. Values are falling on much of the west side of Cincinnati. Not that you can't make money there, just not where I would put my money, especially as an out of town investor.

Sorry, meant 1098 but I can't go back and edit now.

They are not refusing to send them to me, but since they are private individuals I want to make the process as easy and painless for them as possible.

What can I do, so that they have to do the least?

I have a number of private loans to me. I am paying interest on these loans, but since they are private individuals they wont be submitting 1099INTs to me.

How do others deal with this?

If you are going to divide the cost among the units, I would recommend using the number of occupants for water (vs sq feet, which would be better for heat).

So if you have 3 units, and 2 of the 3 have 2 tenants and 1 has 1 tenant, then the first 2 apts pay 2/5 of the water bill.

The father was the builder and its now owned by 3 siblings of the second generation.

It should be 100% depreciated.

I don't know what the FMV was 9 years ago.

So with the built in gains tax the rate is 35% on the entire thing for all 10 years, and then the next day it drops to capital gains rate of 15%?

I learn about something new with each deal. Sounds like this one may be a year away...

The S-corp in question owns a 94 unit complex, 2 homes, and 3 condos.

The sale price would be about $2.4mm. I don't know how much of that would be subject to the built in gains tax. Are there any ways they could sell the property this year, but not realize the profit/gain until 2013?

I understand the taxes are on them but the deal probably won't go through if they have a 35 percent tax rate