Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Donald Hendricks

Donald Hendricks has started 32 posts and replied 218 times.

Post: Stuck In a Terrible Lending Situation

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96

And now I know why that radio commercial is always playing about "predatory lenders", only I believe that that it is also greedy & naive consumers.

I would have insisted on the proper loan in the first place. Had i found myself being "tricked" into this position, I would have let sleeping dogs lay. Established a payment history and begged for mercy if it was ever questioned.

Post: New to BP, located in san antonio

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96

San Antonio is awake today. Welcome, take a peek around, sit a spell.

Post: My Renter Wants to Buy It...

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96
Originally posted by @Ryan Watson:
Originally posted by @Donald Hendricks:
Originally posted by @Matt Devincenzo:

You are mostly correct, you would only pay 15% on the gain, but you have to "pay back" the taxes on the depreciation tax deduction you took over the last 14 years

Here is a quick "estimate" of how your taxes would work (I'm not a tax professional and these are just rough numbers to give you an idea).

Your original basis in the property is 62K, which should have been being depreciated over 27.5 years. So you will have taken 32K in depreciation, that will be taxed at the 25% depreciation recapture rate for a tax bill of 8K.

You would be selling for 94K minus your basis of 62K for a gain of 32K net. This would be taxed at the 15% long term capital gains rate, for a tax bill of $4,800.

So your net after taxes on the full 94K would be 94K-8K-4800= 81.2K net after taxes.

In other words do a 1031 exchange and if you want cash in your pocket do a cash out refi on one of the new properties for tax free money that the tenant pays back.

No, a 1031 is where the money comes out of the old asset, straight into the new asset, never touching the owners hands, thus, deferring the tax.

Thus the reason for the cash out refi on the new property.

Post: My Renter Wants to Buy It...

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96
Originally posted by @Matt Devincenzo:

You are mostly correct, you would only pay 15% on the gain, but you have to "pay back" the taxes on the depreciation tax deduction you took over the last 14 years

Here is a quick "estimate" of how your taxes would work (I'm not a tax professional and these are just rough numbers to give you an idea).

Your original basis in the property is 62K, which should have been being depreciated over 27.5 years. So you will have taken 32K in depreciation, that will be taxed at the 25% depreciation recapture rate for a tax bill of 8K.

You would be selling for 94K minus your basis of 62K for a gain of 32K net. This would be taxed at the 15% long term capital gains rate, for a tax bill of $4,800.

So your net after taxes on the full 94K would be 94K-8K-4800= 81.2K net after taxes.

In other words do a 1031 exchange and if you want cash in your pocket do a cash out refi on one of the new properties for tax free money that the tenant pays back.

Originally posted by @Brandon Turner:
Right now we are paying about $1,000 per month for a garbage dumpster at my 24 unit apartment complex, and it's pretty much always full. We can't shrink the dumpster or decrease the number of pickups unless people throw away less stuff.
24 units for $1000 a month works out to $41.66 per unit, per month. What's crazy is that normal garbage service for a house is only $21 per month. So, technically, I could get 24 garbage cans, and give each tenant their own can and it would cut my costs by $500 per month.

However, 24 cans is just not going to happen. No room, and it would be a logistical nightmare.


Any suggestions? How do I cut my bill down, or encourage tenants to throw away less?

What would you do?


(and just for fun, I found this gif online: )

I will be your trash consultant. I will only charge you one months savings.

Effective immediately, a $21.00 per month/unit pass thru is in effect. This is over a 50% savings for you.

I accept cash, check or PayPal, what is your pleasure?

Post: "To catch a contractor"

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96

Why do I feel like Chris Hansen is involved with this?

I made some tea, help yourself, i'll be out in a minute....

Come on in, have a seat, i'd like to ask you some questions.

Originally posted by @Brandon Turner:
Just thought I'd revive this thread and remind folks of the importance of meeting with local BP members. On Friday I'm meeting with a guy I met here on the site for some Pizza lunch. I encourage you all to do the same!

Are you buying for everyone?

Post: Update on my squatter...

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96
Originally posted by @Charlie Hampton:

@Donald Hendricks

This is my first time dealing with anything of this nature and I took the advice of the police. It has obviously proven to be wrong but I cannot take back what is already done.

I have my demo permit and I have dumpsters sitting on the property. I am just waiting for a "go" to demo it. I work 70 hours a week its hard to find time to sit and wait for him to leave.

I am not faulting you, I am just saying that when dealing with the insane, sometimes you have to act insane. Cats out of the bag, horse has left the barn, only thing to do now is ride out the system because you don't really want to go to jail for arson.

Post: Update on my squatter...

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96
Originally posted by @Matt Devincenzo:
Originally posted by @Donald Hendricks:
Originally posted by @Charlie Hampton:
@George Paiva

Wrong! You, the lawful owner of a single family dwelling, have things in a detached shed. Anything left on the property after closing is yours to do with as you please. Your zest to be a legal eagle, has legitimized his claim and gave him standing to drag this out in the courts. No one is entitled to inhabit a shed, especially one without proper electrical and plumbing. You gave him standing where no standing previously existed. It isn't as though he was in a proper and lawful dwelling.

Just wait until he hurts himself on your property.

This is some horrible advice. There are rules regarding personal property and how to go about disposing of it. Just going in and clearing it out with a squatter that it turns out is a himself a "legal eagle" and knows the court system would have left you open to a claim for the lost/damaged property.

Remember this squatter originally claimed "equitable interest" in the property. Whether he claimed ownership or just tenancy he would have been entitled to some rights whether time or compensation, defeating that claim is what needs to happen to remove him and not remain open to another potential suit for circumventing the court system.

Really? There was no claim until the OP called the police and had a witness to the bum claiming.... Well he doesn't know what he is claiming, he just knows he likes living in a SHED.

So by your way of thinking, anytime someone buys a property with anything in it besides old nasty carpets and torn up blinds, the new owner now must hold onto any and all property and store it for XYZ days, but only after having sent a duly sworn and certified letter to the last known address of some mystery person. Do I have that right?

Right or wrong that crap and shed would have been gone post-haste. What? That was yours? Really? Who are you? I just bought this property? I thought it was some kids club house, no reasonable person would think that an adult would live in such deplorable condition in a shed. Golly gee mister, I don't know what to tell you. What, your going to file a lawsuit? Go ahead.

The lawsuit would then be turned over to my insurance company who would foot the bill to defend against such non-sense. Oh, he wants to claim ownership, well, I bought a title policy for that. They can work that out.

Instead, the OP treated this person as some bonafide tenant and gave the fool standing to appeal, appeal, appeal and standing for a 40k lawsuit for calling him a squatter in court. All of which the OP has to foot the bill to defend against.

Sometimes, as clearly the case is here, you have to do a little rough justice and think outside the box, otherwise you get stuck dancing with an irrational person.

Perhaps the OP could offer cash for keys.... Oh wait, this is a shed.

Post: Update on my squatter...

Donald HendricksPosted
  • Investor
  • Clarksville, IN
  • Posts 226
  • Votes 96
Originally posted by @Charlie Hampton:
@George Paiva

The man apparently lived there before I purchased the property. The previous owners had to have known because they are related. The squatters father lives next door and the extension cord runs from his house to the shed on my property. It is useless to unplug it because it will just end up plugged back in. Also, I did not immediately demo the shed because he has things in there that I do not want to be responsible for replacing. The police told me this man is nothing but a nuisance and has sued the police before. Therefore the only way they will remove him is by court order with a court officer present. I have tried to do this the legal way to protect myself and I seem to just be spinning wheels. Even the people in the county court know this man on a first name basis. Everyone wants to be protected when dealing with him because he has nothing but time to drag out court cases and lawsuits etc. I have no legal recourse on the sellers because I have no proof that they knew he was there.

Wrong! You, the lawful owner of a single family dwelling, have things in a detached shed. Anything left on the property after closing is yours to do with as you please. Your zest to be a legal eagle, has legitimized his claim and gave him standing to drag this out in the courts. No one is entitled to inhabit a shed, especially one without proper electrical and plumbing. You gave him standing where no standing previously existed. It isn't as though he was in a proper and lawful dwelling.

Just wait until he hurts himself on your property.