All Forum Posts by: Jeff Sheraton

I have a mortgage that was created when I sold a property to another investor. The other investor now wants to pay off the mortgage all at once which will result in a good chunk of profit I will need to claim on next years taxes. Is there anything I can do to avoid this? Any sort of exchange or reinvestment I could do?

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Originally posted by @David H.:

Originally posted by @Dan Martin:

Greetings,

My tenants have not (yet) missed any rent, but I'd like to get the process started, particularly since the lease ends 5/31, and would imagine if their situation changes they will just not renew. Current situation could make it difficult to find qualified tenants.

As the sole owner of my Colorado LLC that holds one SFH, I am not technically an employee, and I take a draw, rather than a "paycheck"... I use a property management company, so they are not employees. Formed the LLC at the end of 2018, but property was not rented until early 2019, and I have not yet filed 2019 taxes. Property is mortgaged and produces very small monthly cashflow - net loss last year after replacing furnace & A/C.

Can I apply before tenant misses rent, or do I have to wait until they can't pay?
How best to answer Form 5 question 12 "Number of Employees"?
For EIDL $10k grant, how do I document continuing payroll / not laying off anyone, or is this only a requirement of PPP loans?
How best to answer Form 5 question 15 "Amount of Estimated Loss"?

TIA,
-dan

Hi Dan,

1. Yes you can apply before they miss rent, you are allowed to make reasonable projections.

2. You do not need to have any employees to get an EIDL, so 0

3. The EIDL grant is not live yet, should be this week. You should not be documenting payroll for this, the PPP loan is for payroll specifically and the forgivable portion is a complicated process that does not apply for the EIDL loan or EIDL grant. The Grant is given simply upon making application for the grant and requesting the advance, it is disbursed in 3 days. You do not need to be approved for the Grant, you can get it even if you are denied the loan.

4. I would estimate your loss based on projections if it were me. I would submit a set of porjections with detailed assumptions. Something like "My tenants lease ends on 5.31.2020 and my state is under lockdown. I can't show my apartment due to social distancing. I expect for this to minimally go on for xxx months and maximum go on for xxx months. Also I highly suggest filling out the schedule of liabilities to demonstrate how much your bills are as this may impact loan amounts.

David where did you see that you can make "reasonable assumptions"? I am looking at the second page of this application and it says "Rents lost due to the disaster", can I make a projection here? Did the SBA say this was ok somewhere?

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Searching for a service that I could use to track down old (evicted) tenants current addresses/employers/vehicles. I guess it would be a skiptrace service of some sort. Ideally I'd like to be able to keep a list of tenants with them and be updated if anything changes. Any ideas on this?

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@Trey Crusey we run into this all the time. Bug spray works just fine.

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Trying to come up with some creative ideas for our landlords group's meetings. Have you been to any meetings that you found especially helpful?

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Does anyone know if there is a way to view old (rented) Zillow rental listings (not just the ones that are currently for rent). I think this would be helpful in determining rental rates.

1 Vote

Unfortunately that is certified mail, I need certificate of mailing.

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Trying to find a service that can handle sending letters with a certificate of mailing online. Ideally I could upload the letters and they would handle the rest. Anyone heard of anything like this?

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It would be great if BP had a way for REIAs or other less formal groups to create a group page where they could post group events, documents, discussions, etc (like a Facebook group page). There are a lot of groups that have limited or poor internet presence, this could be a good opportunity for BP since it is already positioned as the go to real estate networking/information website.

After it catches on members of each group that don't already have BP profiles would create their own profiles to access group information. New group members would also be directed to BP for group information and events.

I think it could really drive a lot of traffic to the site and ideally encourage participation in REIAs as well as help form new groups.

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Could someone explain this to me:

"7. Bonus depreciation is now 100% for assets with a useful life of less than 20 years."

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All Forum Posts by: Jeff Sheraton

Jeff Sheraton has started 20 posts and replied 118 times.

Post: Avoiding taxes on a lump sum mortgage payoff

Post: Attn: SBA Disaster Loans for Landlords

Post: Tracking down tenants

Post: How do you keep fleas off you in these off mrkt properties?

Post: Topic ideas for landlord group meetings

Post: Old Zillow Rental Listings

Post: Online certificate of mailing

Post: Online certificate of mailing

Post: Idea for BiggerPockets

Post: THE Thread on the Final GOP Tax Bill - Q&A