All Forum Posts by: Jonathan Bock

Responding to this and your other posts, has any actual real live investor from Memphis offered you cash? Not - Sub2, owner financing, wholesale, contingent offers, but hard verifiable cash.

Someone who knows and works the area regularly?

If you need an exit for a reset this may be an option you want to investigate further.

I actually got an option from a buyer to buy all of my remaining properties in cash. It is a little lower than I expected but I will be able to sell these off, however, it may be at a loss and is less than what I had mortgaged on these houses so I would probably need to come up with cash at closing, which is not ideal. They also gave me a subject to option for all of them, where they take over the existing mortgages and provide cash upfront. Thoughts?

Tough pill to swallow, I like cash and certainty over sub2 all day but that's my preference.

0 Votes

@David Cherkowsky

How do you hold title currently? I'm trying to understand why this structure is being recommended.

0 Votes

Washington, DC

Quote from @David Cherkowsky:

I purchased a rental property earlier this year, and it will be my first year not taking the standard deduction. I met with a tax professional I found through BP, and in our planning call, she mentioned that if you are filing single, and make over ~$80k, then you cannot write-off any expenses associated with a rental property, or depreciate the property. The only tax benefits would be taxes and interest.

She said to be able to use depreciation and write-off expenses, I would need to create a partnership LLC and have someone else be at least a 1% owner in the LLC.

I've read a few books on real estate tax planning now, but recognize there is a lot that I don't know. I'm mostly looking for a sanity check that this is required.

Thanks in advance for the responses..

I'm so confused right now please elaborate

0 Votes

Washington, DC

@Kevin S.

Great question legacy planning is hard enough with family dynamics, add in illiquid and non divisible property for another layer of fun!

I don't think your planner was trying to steer you wrong but it's tough to empathize if you've never experienced owning a family business/real estate.

Growing up in the business you just have a deeper understanding of its challenges.

1 Vote

Orlando, Florida

@Kevin S.

Having a will alone still puts you in the minority of the population so good job on that !

We would still need more information to really understand your case.

My thoughts on inheriting bricks and sticks are a tad contrarian: Do your children want to be in this business? Holding RE till death is always great in theory but reality makes it so much more difficult.

1 Vote

Orlando, Florida

Quote from @Kevin S.:

What is the best way to hold investment property from an estate planning perspective and to be passed down to heirs? My CFP told me under person name is ok. Looking to see if there are differing opinions. This is pertaining to state of Florida.

Also a side question: Do you buy Umbrella policy coverage amount 'equal' to the total amount of all your investment properties and personal net worth? It was mentioned by my insurance agent in the past. Appreciate all answers. Thanks.

So much more to this question....

Your advisor did you a disservice with a simple answer with no basis for their recommendation. Many advisors myself included do estate planning for their clients it's nuanced and complex.

2 Votes

Orlando, Florida

Tax, SDIRAs & Cost Segregation

Post: Holding Company Question

Jonathan Bock

Posted November 04, 2024 07:50

Financial Advisor
Bryn Mawr, PA
Posts 395
Votes 310

Quote from @Ben Foullon:

I appreciate your response, but I don’t appreciate that you’re assuming I’m just wasting money. It would be much easier to send money to each other. But my friend is selling some stocks and was told that if he invests it in real estate he won’t be taxed. So he’s wanting to lend it to me for my next investment without being taxed on it

Quote from @Stuart Udis:

@Ben Foullon Why can't you simply lend each other money? What is the benefit of this shared LLC? Just another example of investors wasting money, time and energy on anything and everything other than the underlying real estate. Sometimes I question whether there is some real estate investor challenge I am unaware of where investors actively try to one up one another with new ways to toss their money down the drain.

Something is off here who gave your friend that advice? More details are needed to understand the case.

0 Votes

@Mike H.

The bank will say no now and then give you a 600k loan after you stabilize.

1 Vote

Buying & Selling Real Estate

Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Jonathan Bock

Posted November 01, 2024 07:09

Financial Advisor
Bryn Mawr, PA
Posts 395
Votes 310

@Arron Paulino

Responding to this and your other posts, has any actual real live investor from Memphis offered you cash? Not - Sub2, owner financing, wholesale, contingent offers, but hard verifiable cash.

Someone who knows and works the area regularly?

If you need an exit for a reset this may be an option you want to investigate further.

2 Votes

All Forum Posts by: Jonathan Bock

Jonathan Bock has started 3 posts and replied 394 times.

Post: Landlord Insurance Policy

Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Post: How should investment property be held from an estate planning perspective?

Post: How should investment property be held from an estate planning perspective?

Post: How should investment property be held from an estate planning perspective?

Post: Holding Company Question

Post: Loan product for self storage and metal building with NO INCOME?

Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Jonathan Bock has started 3 posts and replied 394 times.

Rounded Star Post: Landlord Insurance Policy

Rounded Star Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Rounded Star Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Rounded Star Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Rounded Star Post: How should investment property be held from an estate planning perspective?

Rounded Star Post: How should investment property be held from an estate planning perspective?

Rounded Star Post: How should investment property be held from an estate planning perspective?

Rounded Star Post: Holding Company Question

Rounded Star Post: Loan product for self storage and metal building with NO INCOME?

Rounded Star Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Post: Landlord Insurance Policy

Post: How do Subject To Offers work for the seller? Won't the loan be called due?

Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Post: Do I need a partnership LLC to depreciate and write off expenses on a rental property

Post: How should investment property be held from an estate planning perspective?

Post: How should investment property be held from an estate planning perspective?

Post: How should investment property be held from an estate planning perspective?

Post: Holding Company Question

Post: Loan product for self storage and metal building with NO INCOME?

Post: How do Subject To Offers work for the seller? Won't the loan be called due?