All Forum Posts by: Eric Doud

@Dave Toelkes 

Right, they are a little older and get things confused pretty easy, they were complaining that they paid capital gains taxes on the sale and I disagreed with them, thats when I asked the first question on the forums and started to ask them more questions only to find out that they we repaying there depreciation, again thanks for the reply.

@Dave Toelkes After more poking about it i come to realize that they only paid about $10,000 on the sale of $434,000. So just like you explained they paid years of deprivation since 1997-2002 and the last two years, about 6-7 years. They made it out to be this huge deal and didn't explain the facts. Thanks for you post, it made me ask all the right questions.

@Nik S. 

You should always write your contracts to say rent as advertised not collected. We have always done this and the issue has even came up about it. This way when you go to the closing table all money is accounted for and paid to the person entitled. 

At the time of closing you can go to the tenants and tell them that you are the new owner or Property management. Explain to the tenants that didn't pay there rent that the previous owner paid your rent for the month as per the written contract and explain to them that you will enforce the lease and that if you don't pay your rent the next month, the 5 day notice will come and you will follow through with court action.  

We have found that most sellers are selling because they can't control there asset and let the tenants walk all over them and most tenants that don't pay or only pay half can pay if it is made a priority by the new owner.

As far as your diagram above it was a little hard to follow, maybe you can have your realtor look it over and discuss it with the listing agent for dispute.  If you and your realtor are 100% sure you are right and everything is in contract form you can go to the listing broker for resolution.  Hope this help, good luck and tell us about the deal, what is it and what about the financing.

Welcome to the BP community @Rayman Shakuri I grew up in San Diego and now live in Virginia. Good luck to you and keep posting there is a ton of information and knowledge here

@Shane Waller if you have any questions shot me a pm or a phone call and I can get into more detail about it and let you know what type of deals we have done in the past. 

@Shane Waller yes we have done it several times on different properties. The basics are you sell your property. The profits go to a intermediator where they hold the money for you. You can not take possession of the money. Once you close on your sale you have 45 days to identify the property that you are going to buy and 180 days to close. There is a lot more information but that is the basics. 

@Tom Henderson 

My wife and I have set up S corps for our businesses, she runs a realty company doing property management and i have a contracting company. The tax benefits work toward our advantages, we both get regular paychecks from our companies. We also hold our properties in LLC's, some say they don't mean anything but its just what we were advised to do by our attorney and accountant.

My parents built a house in the late 80s in the San Diego area and rented the house for 15 years. Then in 2002 they remodeled the house and made it there primary residence and lived there for 10 years. At that time they moved to Montana and rented the house for two more years before selling the house. As I understand the tax code if you live in the house 2 of the last 5 years you don't pay any capital gains taxes? am I right? What about re-paying the depreciation for the first 15 years and the last 2 that the house was a rental? 

@Sean Ploskina  Just looking through some old posts in the hampton roads area and noticed no one answered this one, Are you still looking for advise on selling your properties. I have sold and bought several properties with a 1031 exchange and every time the process has went smoothly.  The last two were sales in California and purchases here in Norfolk.  I can either give you advice or help you as your realtor. Hope I can help you out. Also there are a few good multifamily properties that seem to be priced right and in good locations.

@Michael Hurdle 

Not sure if your still looking for an accountant but we use Terri Stewart for all of our taxes and she is great.

1. Address: 397 Little Neck Rd, Virginia Beach, VA 23452

   Phone:(757) 473-0666

   Shot me an email so we can discuss your wholesaling and i can let you know what I am looking for.

   Thanks

   Eric