All Forum Posts by: Jeffrey Coffey

One more thing to add to the "pros" side of the ledger is that you can defer not only capital gains taxes, but also the depreciation recapture. That's not unique to DSTs, of course, as it's a feature of any 1031X, but if you're crunching numbers to figure out which direction to go, that little extra plus might help. I would also like to hear if anyone has any experience with actually investing in DSTs, and which ones are reputable?

Great point Derek! As a matter of fact, one of my renters is a mortgage broker, and he is checking into the regs as we speak. That may be the way to go, unless the costs become deal killers, as you suggest.

Chris...yes, that's my understanding too. The criteria for the 3 notes in a rolling 12 month period include that your note cannot balloon...ever...which is problematic for those of us that don't want to carry the note for the full term of amortization. If you want to balloon the note after 5 years, then you can only originate 1 agreement every 12 months.  And they ask me why I drink...

Thx Phil.  I scanned the bill, and didn't see anything that addressed the issue from an investor's standpoint. That's too bad, because the SAFE regs are confusing and contradictory, to the point where one real estate attorney told me that "no one obeys them anymore." But that puts investors in an awkward position if we want to do more than 1 seller finance deal in a rolling 12 month period. I wonder if anyone in BP-land has struggled with this and can share any insights?

Has anyone been able to find out if the recent rollbacks on Dodd Frank change the number of houses that an investor can sell to a non-investor, using seller financing, before the seller is tagged as a loan originator? 

Nicole...no, I definitely did not pay it. In a combination of emails, phone calls, and an office visit, I took a three-pronged approach: 1) An appeal to do the right thing 2) A reminder that when I prevail in court, they will likely have to cover all court and attorney fees 3) the social media fallout could be costly. Fortunately everything was handled in an adult manner with no shouting or teeth-gnashing. 

To close the loop on my particular situation, I got it resolved with the contractor without having to consult a lawyer..the lien has been revoked and all is well. But if anyone else has taken it to the next step - ie consulted an attorney - I'd love to hear how it played out.

Thanks Ed. If I did get the initial lien invalidated because it was filed incorrectly (which it clearly was), is there anything to stop the contractor from filing another lien with my name on it? In other words, as the landlord and property owner, am I legally responsible for my renter's debts in a case like this?

My renter hit hard times and decided the thing to do was to disappear, leaving behind several months of unpaid rent and a trashed house. That's the backstory, and here's the new twist...I just got a letter from a lawn contractor, and unbeknownst to me, my renter had hired the contractor to cut the grass, and the unpaid bills totaled $952. So the contractor filed a lien against my property. When they filed the Affidavit, they were under the mistaken impression that my renter was the owner, and they listed my renter as the owner in the Affidavit. Since then, I have talked to the contractor and explained the situation, but they are saying they want their money and are leaving the lien in place until they get it. This is in Texas. Anyone familiar with the legalities in a situation like this?