All Forum Posts by: Kenneth Blacow

Hello all,

I am a member of a family that owns 110 acres of farmland and I’m considering ways to improve the value of the land. It is no longer farmable in the area is not farming. I wonder if I should parcel the land or develop the utilities required for an RV/mobile home Park. Let me know if there’s anybody interested in talking with me about development option in the Beaufort county area of South Carolina.

In addition to mortgage deferral/forbearance I have also applied for the SBA economic disaster assistance. On the application I requested two months of lost rent and stated that I have not suffered an economic lose at this point, but I wanted to get in the pipeline. I do not know what is going to happen, but my rentals are in a tourist town that is closed down and most of my tenants work in the service industry. I have not gotten word on either program yet. Just waiting to see how it plays out. I can handle two months with no rent, but do not plan on not getting some stopgap for anything after that.

@Aaron T. F.F.&E. Furniture, Fixtures, and Equipment rules for a business do not differentiate between office furniture and residential furniture. If it is a business, it is a business asset and can be depreciated by using one of many different rules.

Just remember homestead laws are only for a home you live in at the time. These laws will keep a creditor from taking the home you live in or forcing a sale. An LLC is meant to protect your other REI properties from a lawsuit triggered on another property.

Say you have three rentals A, B, and C, and they are all owned in your personal name. Someone slips and falls at property A due to poor sidewalk maintenance on your property (negligence). The victim's lawyer does a property search and sees that you own 3 properties all in your name. That lawyer sees a bigger target and makes it worth his while to proceed on a contingency basis. If the three different properties are owned by three different LLCs it makes the attack surface smaller and less appealing. It also blocks the lawyer's ability to attach his suit to the other properties. 

All of this said if it is the home you are currently living in always claim the homestead exemption if it is available. As pointed out by @Frank Chin an LLC for your personal residence will not offer you much protection.

Scott Smith of Royal Legal Solutions has some great free resources that explain LLCs and asset protection strategies for real estate. 

I believe that the property will be reassessed and you cannot shield it from a market rate increase. If the prior owner has had it homesteaded for many years you will see an increase in assessed value there is no way around it. Just an FYI though I am in GA, I own property in FL. 

Hello All,

I am looking for special funding resources to complete the restoration and hurricane mitigation of a historic Key West home built in the year 1900. It was built by my 3rd Great-Grandfather for his daughter and husband and it is in need of some foundational and shutter repair work. I was looking into the FEMA and Florida grant programs, but they all appear to require a Non-Profit or Government sponsor. Has anyone out there ever approached a Non-Profit about working to sponsor an individual homeowner project?

I look forward to any BP community support and encouragement.

Ken

Check out the podcast mentioned here.

@Brandon Hall just spoke about that on the podcast which aired a couple of days ago, highly recommended. Here's the link:https://www.biggerpockets.com/renewsblog/biggerpockets-podcast-269-how-the-new-tax-code-affects-your-real-estate-investments-with-amanda-han-and-brandon-hall/

I follow @Yonah Weiss His information has been very helpful and informative. I expect to pick up some property in 2020 and plan on doing cost segregation studies.

https://www.biggerpockets.com/users/YonahW18

Just to clarify they would have to split that commision with the buyers agent and would not retain the entire 6%. They are basically always your broker of record as the property manager. I do believe this is standard in the industry.

@Tyler Hardy I’m not sure why it wouldn’t work earlier but here is @Mike Williams.