All Forum Posts by: Account Closed

@John Farady Is the turnkey provider doing a creative JV with you or is this a more typical turnkey model where you buy a property that is fixed up at a $240k PP with $60k down?

It's already fixed up, the $60,000 is the total, no fees after that. However I do take over an existing payment from the seller. Then he finds me a tenant buyer who puts down $20,000 to $25,000 option fee, which I get to keep, as a Lease Option to the tenant buyer. It is a variation outlined in a spreadsheet he did at

Average Cash Flow Per Door In Phoenix Metro Area

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

0 Votes

Originally posted by @Nicholas Jose:

Originally posted by @Account Closed:

They will either willingly fill out the form since they are showing you what they actually filed or they will say they need to take it home and think about it. Then you will have your answer.

Okay. So I have multiple questions from this:
1. Would I give one 4506T form per applicant?

2. Would an applicant need to fill out two 4506T forms if I'm interested in their tax returns from the past 2 years?

3. If there are multiple occupants, would each occupant need to fill out their own 4506T form?

You need a separate filled out form per applicant for each year

0 Votes

Originally posted by @Nicholas Jose:

Good afternoon, BP.

I'm currently doing research on how to screen applicants, particularly those who are self-employed. One way to verify an applicant's credit history would be to examine their tax returns and other relevant documents (i.e. bank statements). However, what exactly are you looking for when you see the form with your own eyes? Would there be something that jumps out at you that screams "WARNING! THIS IS A FAKE DOCUMENT"?

For first-time landlords, wouldn't it just be easier to have your tax advisor/preparer look at the applicant's tax returns him/herself and report back to you about its legitimacy?

For Tax Returns, you download the Form 4506T from the IRS website and have them fill it out. As they fill it out, explain to them that this form will be sent to the IRS to verify what was actually field and you will be making your decision based on that.

They will either willingly fill out the form since they are showing you what they actually filed or they will say they need to take it home and think about it. Then you will have your answer.

1 Vote

Originally posted by @Daniel Dietz:

So I am reading what @Account Closed posted and IF I am understanding correctly, when I start taking SSI and say I had 30K of rental income that showed as a 'tax loss' due to depreciation etc... and I took another 30K from my ROTH IRA, NEITHER of those sources of income would count towards making SSI partially taxable?

Would that change if the IRA income was taxable withdraws from a Traditional IRA?

Thanks, Dan Dietz

That's a good question and I don't have an answer for it. Probably will take a SS specialist or a call to SS to get the correct answer.

0 Votes

Originally posted by @Chris Howell:

So I have been working with a private money lender on a deal and have exchanged well over 100 emails. But when it comes time to wire money he is now asking for more money.

More money than what was agreed on and signed on our contract.

He is claiming that the bank is requiring this fee for insurance on the wire transfer and can not complete the funding until I send more funds to him.

Is this normal? I have never heard of this and neither has my bank.

Go ahead and tell us who you are dealing with so others will be forewarned.

3 Votes

Originally posted by @John Underwood:

Originally posted by @Basit Siddiqi:

@David V.

The more income you earn while you are taking social security means that more of the social security will be included as taxable income.

You say earned. What about non earned passive rental income. Is that treated differently?

What happens if I work and get Social Security retirement benefits?

https://faq.ssa.gov/en-US/Topi...

What counts as earnings:

When we figure out how much to deduct from your benefits, we count only the wages you make from your job or your net earnings if you're self-employed. We include bonuses, commissions, and vacation pay. We don't count pensions, annuities, investment income, interest, veterans, or other government or military retirement benefits.

1 Vote

Originally posted by @Mary M.:

Not sure your sources, but the stats I am seeing says about 93% of rent is being paid.

You can track it here https://www.nmhc.org/research-...

ps - i am in the middle of a 1031, but before I closed on my downleg I was at 100% collection in my 10 units

A third of U.S. renters didn't pay the rent on time this month

https://www.cbsnews.com/news/a...

By Khristopher J. Brooks April 8, 2020 / 4:50 PM / MoneyWatch

Exhibit A: As of April 5, some 31% of the U.S. households that rent hadn't paid it for the month, the National Multifamily Housing Council said in a report Wednesday that tracks how the pandemic is affecting the housing market.

"The COVID-19 outbreak has resulted in significant health and financial challenges for apartment residents and multifamily owners, operators and employees in communities across the country," NMHC President Doug Bibby said in a statement.

Although 69% of renting households were able to pay the April rent, that was down from 81% the prior month, according to the group, whose data cover 40 million renters. Renters in Louisiana and New York saw the biggest increase of unpaid April rent.

Those financial struggles come as millions of workers around the country are being laid off

2 Votes

Originally posted by @Nathan Gesner:

My only thought is that the higher percentage of unpaid rent must be with private Landlords. Maybe they don't run a tight ship and Tenants are taking advantage of the situation?

What's your experience? What are you hearing in your market?

And do you expect it to get better now that COVID restrictions are being lifted, or will it continue to worsen?

Being evicted for nonpayment of rent won’t really be a thing for Seattle tenants in 2020–at least if tenants assert the rights they won at city council today.

Council President M. Lorena González introduced the emergency ordinance extending the eviction moratorium, which Governor Jay Inslee enacted and Mayor Jenny Durkan affirmed, a further six months past its June 4th expiration date. As an emergency ordinance, it needed seven votes, and it passed unanimously with nine.

Councilmember Alex Pedersen attempted to add a series of amendments, most notably a small landlord exemption, but was decisively repelled by his colleagues in a 8-1 vote.

*************

Rent non-payment is WAYYY UP in Seattle. By the way, it's against the law in Seattle to ask someone if they've paid rent. So it's anyone's guess how many people are taking advantage but reportedly it's a lot.

5 Votes

Originally posted by @Account Closed:

I am a newbie investor. I will soon have $65k from a cash out refinance from a property that I inherited and am now renting out. I am interested in BRRRR method, however in the market I am in, I would probably need 200k-300k (which could take a few years) to BRRRR a 3/2 single family home. I am wondering if I should invest the 65k into the stock market and just save up more money from my job, or if I should just buy another home in the next few months-year using the traditional method and use the 65k for down payment and rehab. I am worried if I wait too long that the market could continue to increase and I would be behind. I am quite new and I haven't made many connections to get great deals.
Buy and hold investors, what would you do with 65k?

I buy Turnkeys in Phoenix from my Turnkey provider for $60,000 and it's the best investing I've found. If you put your money in the stock market you are likely to lose it in the next downturn. I'll introduce you to the Turnkey guy if you think you want to sit and have coffee with him and discuss your options.

2 Votes

Originally posted by @Jesse Wolf:

Ok, I believe I've found myself in a pretty amazing situation to acquire a duplex. A family friend is selling after 25 years of being a landlord, and she just wants to be done with it and move onto the next chapter in her life.

She is open to seller financing and working with me, so I am trying to figure out the best way that I can get into it without any money out of pocket. She does not need any money right now, and actually seemed like she would prefer the monthly installment payments especially if it gave her a tax benefit. To my understanding, the installments would still be taxed on capital gain for the total price of the sale, which would be at 15%.

The kicker is that she still owes a 90k mortgage on it. I am concerned about the due on sale clause. From what I've read so far, it doesn't sound like the bank would call it due as long as I make the payments on time(I'm not concerned about being able to make the payments). Also in a worst case scenario I do have access to the 90k and would be able to pay it back, however for obvious reasons I'd like to keep my cash free.

The duplex itself is valued at about 400k (we live in WA state). What is the way that I would be able to seller finance this and be able to get into it without any money out of pocket?

I'm scouring the internet, youtube, talking to friends but I figured I'd throw up a post too and see if anyone would be willing to walk a young hustler first timer through the process.

Ideas I've lightly thought about, but I'm not sure if these are possible/legal:

-Take traditional mortgage for 90k, do a personal note for the remainder

-Take full personal secured note for the purchase price, and pay the 90k mortgage myself

-Pay off her mortgage, take ownership, then put a bank mortgage on it and pull my cash back out, and then write a note for the remainder

Thanks BP!

Keep in mind that the seller pays the state of WA 1.78% and higher in some places for the privilege of selling. So, on $400,000 it's about $7,000 just in excise tax. She could do a Wrap mortgage for the entire $400,000. You make the payment to her, she continues to make her monthly payment. Since she is taking payments she can elect to be taxed on payments as they come in.

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 12 posts and replied 576 times.

Post: What to do with $65k in Phoenix, AZ?

Post: How do you verify FAKE tax returns (and other docs)?

Post: How do you verify FAKE tax returns (and other docs)?

Post: Rental Income & Social Security

Post: Need help possible funding scam!

Post: Rental Income & Social Security

Post: Why is unpaid rent so high?

Post: Why is unpaid rent so high?

Post: What to do with $65k in Phoenix, AZ?

Post: Seller financing wrap around