All Forum Posts by: Dave K.

Can I revive this thread as my questions are so closely related to the OP. 

Also, State of WA. 

Purchased Dec 2001 for $215K  Considering Selling today for about $750K = $535K appreciation

Spouse passed 2019.  Is the step up in basis for the property now sitting at what the house was worth at 2019? $487K (zillow estimate) or the value when the property is sold today at $750K? 

Also, in the OP example since the living spouse sold within 2 years, can't they claim the husband and her lived in the house for 2 of the 5 years and get $500K exemption. Maybe this would be used for non community property states? 

Quote from @Jamal L.:

@John McKee I like that idea. I was thinking along the lines of giving up SD and asking for 60 day build out and then asking for 6 months with only paying half asking price for rent. Since I could not operate until we pass inspection. But I would be willing to pay for the first 3 months upfront and the last 3 months after the first three end. Then paying the requested rent amount for the first 2years and then increasing 5% After the 3rd yr and lock that in for another 3yrs and increase by 10% the 5th-10th yr. Any thoughts on if this is feasible and would you except it? 

Why are you willing to increase your rent by 5% and 10% instead of sticking with 3%? Keep it at 3% escalation like John McKeee said. As a landlord, i would take 10% and 5% all day but for you as the tenant, that's going to hurt later on as rent increases so fast. Make a simple excel sheet and compare your rent for the next 10 years using 3% escalation vs 5% and 10%. 

OP,

I don't know where you are but in So Cal, the OZ are seeing a lot of investment these days. They are building housing on even very small plots of land.  One property I know is very small near a freeway and it's like a triangle at a big intersection and THEY BUILT A CONTAINER APARTMENTS ON IT. 

So I don't know what type of activity is going on in your neck of the woods but OZ properties could be much cheaper with greater tax benefits. Is there a bad shortage of housing in your area? Is it close to downtown or further out? 

Good luck on this opportunity. 

Update on my question in case others run into this situation. 

I wanted to work with the AIR CRE docs but the broker dual agenting the tenants didn't have access to them and didn't show a desire to get them. I went ahead and contacted the AIR CRE sales dept myself. They said that in order to use their contracts, I would need to purchase their software for $600 which comes with 199 credits. (The software is available to non agents such as lawyers, property owner/managers and etc.) So each credit is worth about $3 and a Lease for STL Gross is listed as 6 credits would cost me about $18 and any additional docs such as addendums, rent increase or Extensions would cost about $6 each. The cost isn't too bad per contract but the software cost was a problem since I only need a commercial lease docs once every 10 years or so. The good thing is if I did purchase the software, they said the credits never expire, so that's nice but what will I do with the rest of the 180 credits stuck in the software. LOL

I asked if it was okay to contact their members listed on their website to see if anyone would be willing to write the contract for me and the sales rep said that it was perfectly fine to do that.  I found a nice agent on my first attempt and he and I came to an agreement on a flat fee for the docs that I would need. He is charging more than $3/credit but the convenience of not having to purchase the software as well as learn how to produce the doc is well worth it. He was happy to help since my fee would help him offset his fees.  

I didn't like the shortness of the CAR document 7 pages compared to like 20 pages for the AIR Single Tenant Lease - Gross and I'm glad I stuck to what I know and like.  Didn't want to have to go searching but it wasn't too bad. 

All of their Leases are available for viewing on their site. 

https://www.aircre.com/ under /air-cre-contracts/list-of-contracts/

Hello BP,

Can any brokers working with AIR CRE lease docs on here tell how much it would cost to write out a lease with 14 -20 credits? Looking at AIRCRE website it seems they moved to a pay per use model with credits and so I wanted to know how much it would cost the broker to access these docs. https://www.aircre.com/air-cre... 

I'm currently negotiating a new lease and in the past the Commercial brokers I have worked with have provided me the AIR Single Tenant Lease Gross along with the needed addendums, guaranty of lease, option to extend and rent adjustment. The current broker retained by the selling tenant doesn't have access to AIR but has access to CAR. How long does it take to get accepted into AIR CRE if I can convince the broker to apply so he can gain access to the docs?

Any other way to get these docs? Do Brokers offer writing  an AIR lease for a fee? 

Thanks for any help. 

Quote from @Lee G.:

Has anyone used or evaluated the use of Wyoming Land Trusts and/or in combination with Wyoming Statutory Trusts for anonymity and/or asset protection, for Non-Wyoming state real estate? 

I have several properties in CA, Louisiana, and Texas and would like not to have my personal name publicly connected to them for anonymity purposes and also protected from claims/lawsuits the same as an LLC would protect me. I am a CA resident. The only issue with actually using an LLC for each property is the fees that would be required for each, especially CA.

 @Lee Goss I am in a similar boat and I have been listening to bigger pockets Podcast 109  and 595. these are the AP podcasts. I am also listening to podcast with CPAs that also offer good info on how to deal with llc and keep them compliant and tax stress to be minimal. Search for Amanda Hn, Tom wheelwright, there are 2 other frequent CPA but i forget their names linda? and josh? They help answer some questions on @David Greene's podcast. 

I did find Anderson Business Advisors and they have a lot of useful info on youtube under Clint Coons esq., Brian Bradley esq, from episode 595. Don't listen to the non laywers as some of just shills for their youtube channel or llc creation services. 

Call up a few AP lawyers in CA once you are ready to discuss some of your concerns. The more you learn the better before you talk with the final contenders for your service. 

YOu might get overwhelmed with the info, that's where I am but keep going and you'll reap the benefits of a good strategy and rest easy at night like the posters above.

Hello BP,

I've got a strange question to ask before seeking legal advice and wanted the community's opinions.

I have a tenant who runs a liquor store. They tell me they want to retire and are selling the biz. I suspect that may not be the full reason, as the area has been notified of a gas station+ convenience store opening up across the street from this location. They are seeking the city's approval to develop the land for this but not sure if it has or when it will pass. When asked about it, current tenant said they made the new buyers aware of the possibility of the gas station/ convenience store but asked me not to mention it to the future tenant as they have already done so and not needed. 

I suspect the current tenant has not fully, if at all disclosed this information to the buyer and I do not feel comfortable getting into lease negotiations with the future tenant unless this information is disclosed properly.  My worry is I do not want to be held responsible IF this deal falls through.  My commerical RE agent friend in another state tells me to make sure it's fully disclosed to the broker in writing via email so that there is a paper trail left showing I made the disclosure. Turns out the broker is representing both sides on this deal.  If I do not make the disclosure and it turns out the current selling tenant didn't disclose, then current selling tenant and possibly me could be liable.  But if the selling tenant dissolves their entity after the sale, then the buying tenant may only have me the landlord available to sue, not to mention a ruined relationship with a tenant for 10+ years.  I feel like I'm looking at a situation where I could end up being sued if not done correctly so I am calling on a few local lawyers for their advice. Just wondering if anyone here  has dealt with issues like this in the past and how I should deal with this situation. Also, what if anything else I need to highlight to the RE lawyer.  

Thanks for your opinions in advance

Anyone of you looking for a good high yield savings or checking account should check out the money blogs.  Hustler money blog or bankrate.com or doctor of credit site for bank opening bonus + finding the highest yielding accounts. 

https://www.doctorofcredit.com/high-interest-savin...

https://www.magnifymoney.com/blog/earning-interest/best-high-yield-checking-accounts376922578/

Originally posted by @Account Closed:

Originally posted by @Dave K.:

Originally posted by @Account Closed:

Originally posted by @Gregory H.:

@Account Closed Yea, you really don't have the stomach for stocks, it's just funny how you can mock one of the main sources of wealth in our economy when you know so little about it that all you can do is read off the DJIA which is one of the most useless indices in all of finance. 

 Lol. I'm a bit more informed than that. 

We are entering a trade war of sorts with China (and their economy is tanking by the way which significantly affects our economy), the Fed needs to reduce their balance sheet from the QE's which means raising rates, the Dems have promised further volatility now that they control the House and have made their plans known and most of the people who dutifully place their money in 401(k)s that are invested in the market have no idea what that means or why it will destroy their 401(k) in the coming year or two. Even Gold is moving off it's lows. Something is up.

This is meant to awaken those who have a 401(k) or IRA in the market to consider other investments which is the cautionary approach to preserving wealth. Oh, and I'm sorry you didn't take the advice and you lost so much in the market.

 If you were so sure of what you say, you'd have gone short and made money.  Please do not tell me that you are more informed than that yet you didn't follow through with your info. 

My observation... you post on here how bad the market is everyday the DOW goes down. Yet you say nothing about the up days.  Why didn't you post on BP during the bull market with your info? The "market is rigged" for you regular folks..? 

Either you think you are smarter than others and want others to follow your mistakes or you love the attention you get from these postings.. I left this stupid thread long time ago yet you replied to a whole group of us.  F-ing stupid attention W horse. 

Your Comment: "Yet you say nothing about the up days."

 Just 3 posts up I post that the DOW had an UP 747 point day. I guess your ability to analyze information is limited to whatever biased opinion fills your thought process.

By the way, your bias is so heavily imbalanced and lacking in critical thinking I have to ask: "Do you sell stocks for a living?" Do you even realize this is a Real Estate Investment site?  

 You only posted that because @gregory Hilban called you out for only posting for negative days.  I don't see you doing that regularly without being prompted to do it.  Also, it's not my biased thinking that's making me annoyed with your argument and trolling thread.  It's the fact that during dips in the market, if people (are dumb enough to listen to you and) sell their holdings, then they are most likely going to miss out on the rebound.  If you don't have the guts to invest in the market, that's fine but don't mislead others into thinking they are making a huge mistake just because you want to seem like you are in the know and want to promote your properties to sell.  

LOL the so called bias you are seeing is someone calling you out for your own bias and irresponsible advice.  If I was a stock broker or agent, I wouldn't bother with stupid threads on a RE investment site, bc I would be busy getting all of my friends/clients in on deals that have been created recently with the correction.  I don't sell stocks for a living but I do invest in the market.  I am not a day trader but I am someone who watches the market for deals and purchases when I see a bargain.  I also have RE income as well and just because this is a RE investment site doesn't mean I should allow someone to give others crap advice just so they can try to seem smart and push their properties on less informed.  

Originally posted by @Account Closed:

Originally posted by @Gregory H.:

@Account Closed ... no post when it rebounds the next day

 WHOA!! Stock Market UP 747 points today!! Hey, this is a fun Roller Coaster! Anybody's stomach ready for Monday??? (Sorry for the posting delay, had a busy day selling a house ;-)

Since nobody else said it, I will.  I think your self promo postings and your thoughts about the market are more nauseating than this turbulent market for most of us.   (slams door on the way out of this stupid thread)