All Forum Posts by: Kacey W

A general real estate attorney, but not a lot of experience in this. I agree. I need to find an attorney that specializes in this.

Kevin- Please pass along the contacts in Dallas. I would greatly appreciate it.

My wife has no real interest in taking over the properties, or even managing the management. Like Tim stated, the key man insurance would be for the partner to buy out my wife, and dissolve the partnership. I think we are planning on getting her setup long enough to oversee, list, and sell the remaining properties.

If this was the case, what would be the best route I would go to legally transfer control of all the companies and property LLC's to her, and also make this transition as painless as possible?

The counsel I have talked to have given a few different options, but I am still gathering info and experience on the subject.

It seems like this is not discussed much.

Thanks for the input so far.

I am looking for ideas on how to set up a successor plan in case something happens to myself, and I can no longer take care of my RE portfolio. I have a few commercial properties held in separate LLCs, and a few properties in different partnerships/LLCs. If I were to die today, how would I legally pass these on to my wife? I am looking into key person insurance/term life policy to possibly cashout the partnerships, and also get my will/estate plan in order.

I am also implementing a process/procedures manual for her to take over if needed.

Anyone have ideas/experience on some things to cover my wife and myself? What must a guy do to make sure his wife and family do not have problems after an untimely death?

Are there any articles or books on the subject?

Thanks

Thanks for all of your help Steven! I sure appreciate all of your knowledge you have passed along to me!

So, would the down payment (lump sum) amount be deferred as well? Say you did the wrap and receive $100k as a downpayment on a $300k purchase amount. The original loan balance (my original loan) and also the new mortgage (buyers new loan from me) would both be around $200k- with the new loan being greater than the original. What taxes would be owed on this $100k down payment, that I will be using to buy other properties? Can this also be deferred? How would the IRS look at that income?

Hopefully that makes sense.

Anyone have any thoughts on the best way to lower a tax hit on a wrap like this? Trying to figure out if there is anything that might help with structuring a sale as a wrap? What is the tax on the profit from the sale for a wrap? Can you 1031 this?

So I would imagine you would be taxed on this like a standard sale of the property? And can 1031, etc. just like a regular sale?

Thank you both very much.

Chris, do you have any worries your lender will call your mortgage due? Do you feel your buyer is going to be able to refi the property, without problems, at the balloon date?

I agree, this is a very positive thing for both buyers and sellers if we can get over the few hurdles. I am hesitant because of my original lender calling my note due down the road.

How do banks look at a wrap situation when the buyer goes to refinance the property at a later date? Are there any holdups there?

Also, are there any tax breaks with a wrap? Can I 1031 the down payment proceeds, do I need to? How does the IRS look at the proceeds from a sale like this?

Thanks again!

Hello,

I am looking for feedback from the sellers perspective on mortgage wraps. Is there anyone that has successfully done mortgage wraps being the seller? What would be your concerns, and in your eyes would the risk outweigh the reward?

Sellers, has your bank contacted you about the "due on sale" clause or anything else? Has your buyer been able to refinance the note without problems before the balloon?

Would you or would you not wrap a commercial mortgage right now?

Any insight, comments, experience appreciated and welcomed!!

Buyers, please feel free to chime in as well. What has the process been like for you after the wrap? Any problems with refinancing, insurance, original lenders, etc.?

Thanks

Hello,

Can a person take 1031 exchange monies and partner with another investor on a like property? If so, how would this look and be set up? Say I have $100k to 1031 and want to buy a property with a partner that also brings in $100k to invest.

Thanks