All Forum Posts by: Jay Dimacali

@Monica Abeyta subject-to means getting the property with the current loan in place.  You just take over.  Use the land trust to move the house into the trust first before taking the property subject-to.  It's highly unlikely but the bank might call the loan due if you get the house via a quitclaim or some other way.  In a land trust, you can just tell them the house is in a 'trust.'

I wouldn't recommend buying the house from your parents.  Another loan in your name and the house gets reassessed = higher property taxes.  Ask me how I know.

Getting shut down by the city for adding on another unit isn't great but it's not over yet.  I would look into seeing about having the garage converted into a unit.  Depends on Glendora's rules but in LA I'm sure you've heard about the city being more 'lenient' about granny flats and the like.  It costs money to do it legit but you could be looking at a good $1k a month.  Check out the IKEA in Burbank and they've got a set up for a 400 sq ft apartment that looks great.  It's got everything and the kitchen sink.  

I think all the other posts have great points. I would just add look into using a land trust to transfer ownership to you. To me the biggest benefit would be you won't get reassessed for property taxes and you get the beneficial interests. I would also agree with another person's suggestion of adding onto the property. You're in LA so there is the big push to have increased housing. Why don't you look at to see about making a 3-unit addition to make your place into a fourplex. That still counts as residential. I also think it's a great idea if you can take your parents loan as a subject-to. You can then look into getting a HELOC to help you with construction costs. Right now even the big banks are offering up HELOCs and you can look into that before the market takes a dip and the banks pull HELOCs off the table. Just some suggestions of what I would be thinking to do. Good luck!

I would agree with many of the people here and state that the S Corp is not the place where to put your real estate for the most part. I ran into the same thing with my tax person who was referral and he said the same thing of going into an S corp. Just like many people are saying it would have become a huge tax nightmare later if I did do what he recommended. I learned from some attorneys that some CPAs are not familiar with LLCs and that is why they recommend C and S corps because they are older and more familiar. In general you're better off staying with an LLC like I did. Good luck!

Hi @Sendhil Krishnan  I tried to PM you but there's no option.  

But thanks for getting back to me. You're insights have been helpful. As for Gene's course, was it worth the time and effort? Has it made a big enough impact to attend? And what is a ballpark number for an administrator and caregivers for a place? I know that's broad but let's pretend it's a 3 bed house. Is it worth it in that case? Thanks!

@Faiz Khan  How has it gone with your search for a rental for an assisted living facility?  Just curios, what's your level of experience and certification with an ALF?  

@KENDRA J.  What ever happened the the assisted living facility that wanted to rent your home?  Did it work out?  Thanks in advance.  

Hi @Sendhil Krishnan.  I've been thinking about Gene's course and what it has to offer.  What are your thoughts on it now that it's been some time that you completed it?  I have some rentals in LA that I'm thinking of converting into RALs.  Does the networking that Gene mentions to develop your business seem plausible?  Thanks in advance.  

@Ben Booker  Just curious what makes you think the market it headed for a correction?

And your equity isn't as much as you think it will be after the costs of a transaction are accounted for as someone else mentioned previously.

@Jason Malabute I would agree with Brett that renting for now is probably a good way to go.  Unless you can find a program in LA that will help you out (I would be shocked if there was such a program in LA) then I would wait for the next downturn. That's what other great investors like Warren Buffet (I know he's in the stock arena) do.  They sit in cash and wait to buy when the market has collapsed.  For SoCal that's the million dollar question:  When will the next crash occur?  Good luck.