All Forum Posts by: Kenneth Blacow

@John Hyre, what is your opinion on modified gross leasing? I am a general partner in an LP that holds a 5 unit commercial building that uses a modified gross lease not NNN. I found the article below that says to switch to a MGL instead of NNN. I am very involved with the manafment company and the bookkeeper in management decisions. I would think this would qualify as a TB.

https://daveison.com/real-estate-owners-is-it-time-to-switch-from-a-triple-net-lease/

also, he needs to take a step up in basis election on the estate tax return. Tell him to be sure and speak with an accountant. I inherited some high value assets and stepped them up it also allows the ability to start to take depreciation on the stepped up basis. 

Just adding my interest to this thread also. Nate please keep us updated.

I'm not really sure if this is still alive, but I can tell you I operate a couple of properties as a rental business that are titled in the name of an irrevocable trust and I am one of the trustees. When the trust became irrevocable at the time of my mother's death, I had to apply for a TIN (Taxpayer Identification Number) and then opened a business bank account in the name of the trust. I currently conduct all business in the name of the trust, but I am planning on moving title to a holding LLC and creating an operating LLC to reduce the exposure to trust assets. My big question and I am still looking for an answer is can I get conventional financing without affecting my personal ability to borrow? (But I guess that is for a different forum.)

How did it go? Did you get rid of the stop work order? What was the SWO issued against? If the opinion of the Office of Building and UDC was you didn't need a permit, then a SWO is mutt issue and can be ignored. Right? 

Thank you @Joshua Fulenwider I will keep looking.

@Joe Hughis I cannot figure out how to send a DM. Can you send me one and I will answer your questions.

Thanks,

Ken

Hello,

I am the co-trustee and co-beneficiary of an irrevocable trust that my sister and I inherited when my mother passed. The property is a very old home 100+ years and my mother let it fall into disrepair, not out of code, electrical was updated in past years. It looks like it will take about 150k to bring it up to its full glory and probably about 75k to patch and paint. I am looking for financing suggestion that would not require me to tap my personal credit. I have 7 months worth of meticulous books and continue to keep them up-to-date. Do you think I have options to get some type of equity line the full 150k would barely touch the equity. Is it better to wait until I have a full year of bookkeeping? Any suggestions would be greatly appreciated.

Ken

Hello,

I am the co-trustee and co-beneficiary of an irrevocable trust that my sister and I inherited when my mother passed. The property is a very old home 100+ years and my mother let it fall into disrepair, not out of code, electrical was updated in past years. It looks like it will take about 150k to bring it up to its full glory and probably about 75k to patch and paint. I am looking for financing suggestion that would not require me to tap my personal credit. I have 7 months worth of meticulous books and continue to keep them up-to-date. Do you think I have options to get some type of equity line the full 150k would barely touch the equity. Is it better to wait until I have a full year of bookkeeping? Any suggestions would be greatly appreciated.

Ken

Thank you Krystal.  We plan to manage the rental business ourselves, but if you have any vendor recommendations that would be great.  We have a unit that was just vacated today and will need to get it cleaned and prepped to re-rent.  Do you have any good contacts for an apartment punch out?