All Forum Posts by: Kenneth Moerschel

I am looking for a CPA. I work in NY full time at s bank. I live in the poconos and have an Airbnb rental there. I am looking to do end of year strategy Self directed 401k. What type of changes do I make to meet my goal of rental income with low tax rate.

My margins rate is 18%.

@Natalie Kolodij

Gotcha! Yes it’s a bit complicated. And on top of that in NYC when it is mixed use it is hard to get a loan unless you are actually going to be using the space for your own business. Like a doctors office..

Thank you for your help and advice!

@Natalie Kolodij

Hi Natalie, thanks for your reply. So the rest of this story is owners brother passed away and now the other brother is the sole Owner. They have owned the building since the 60’s.

Are you saying that they will need to be aware of their taxable gain? If they sell it for approximately 700k less than it is worth are there any glaring issues for both parties? Basically they are willing to sell super cheap to someone they know.

Not sure if I am missing your point or if this really does not matter. Also this is in NYC. Trying to figure out what they will need to be aware of so they are not put in a bad position.

Thanks for your feedback!!

Hello All,

I have a question or scenario. An owner is opened to selling their building way below market value. There is no mortgage on the building. What are the financial implications if the owner sells it to someone for a much lower price? What tax or downstream effects should the buyer be aware of?

How do you structure this deal to make it go off without any issues?

Thanks for all replies in advance.

@Scott Wolf

If the buyer does a Primary residence, single and then live in it for 2 of 5  years they will be exempt of any gain on the first 250K? 

@Mason Hickman 

There are no concerns as far as the property at all. I did read about the high capital gains. This will always be an issue if and when you sell correct? The buyer should probably look into a 1031 Exchange to defer the capital gains tax correct?  

Can someone sell their property that has not had a mortgage for many years to a friend way under market value? The property is worth over 1.5 million But the seller is open to selling to a friend for a much lower price because they just need to unload the property due to their age and having to maintain the property. What kind of things should they look out for as the seller and what should the buyer be aware of in this situation? 

Any advice is appreciated. 

Thanks!

@Andy Thompson Thank you Andy this makes a lot of sense. I was thinking more like 70/30 where I get the 70. However you’re bringing in good points.For example how will I know if I can get better pricing if I’m only getting it from this contractorI think on the first one that you might not be such a good idea after all I need to see how he works ...build trust first and then partner.

A contractor asked me to do some flips I can bring money and potentially look for homes and he can do the work but can you share positive and negative stories on this scenario? It will be legal paperwork and a real estate agent.

I was recently approached by a contractor who wants to partner basically I would have to put in either all or some of the money to acquire and to fix a real property how would you say we divide the money that we earned?

What are the benefits? and pros and cons of partnering with a contractor?