All Forum Posts by: Leo Tsang

Hi Yuki. Love to connect too.

@Daniel Rossi

Cool. I’m from central Jersey and investing there too. Let’s connect.

Thanks Stephanie. My issue is the partnership. How we could reflect this partnership in our tax. We want to make it the proper way at the very beginning, For now, all the incomes are reported on my tax but technically I only share half of the property.

Thank you

Do you know how to set up a land trust? And how to transfer the property to a land trust?

I bought an investment property last year in NJ. It was intended to purchase it the form of a partnership. However, due to COVID my business partner was not able to come back to US at the time of closing and the township does not accept his power of attorney without the notary of the US Consulate (the US Consulate in overseas did tell us to get the power of attorney in local High Court which would be equivalent to the power of attorney by the Consulate however our system is not flexible in this matter even in pandemic). So we decided to move forwards and put the property as well as the loan under my name but using both of our partner fund for the down payment. We expected we could get the power of attorney from the US Consulate later on when the pandemic is getting better unfortunately the situation is not improving and he is not able to come back in order to add him to the deed. 

Since setting up an LLC is much easier that it does not require a power of attorney, we are thinking to set up and transfer the property to the LLC. We also consulted with our accountant, she also suggested it would be a much better idea from a tax prospective. Because the partnership is better reflected in this arrangement and it is much clearer in term of tax filing purposes. So I contacted the bank but they said it was not possible otherwise we would have to refinance it to a commercial loan which we may not want to.

My questions are:

1. if it is a good idea for us to transfer the property to an LLC as our accountant advised given our current unique situation?

2. if it is true that I have to refinance to a commercial loan if the property is transferred to an LLC?

3. if anyone has similar experience. How did you get over it? What are the options? Any advice is much appreciated.

Thank you very much.

Leo

The current lease will end in about a month. So I start looking for potential tenants. Most of the inquiries expect to take a tour at the house. Given the existing unique situation of the COVID19 outbreak in NJ and under the state order of stay at home which requests us to stay at home at all time and keeps the travel to minimal unless absolutely necessary, how could I show the house to potential tenants? To coordinate with current tenants could be a challenge too as they may want to avoid unnecessary contact with others which I can totally understand.

Any advice would be much appreciated. 
Thank you very much and stay healthy all!!

@Theresa Harris: Thats what I think. The property has passed Section 8 inspection so I would expect the property has met certain standards. 

Let me see if I can look at it personally. It is relatively closer at least I dont have to fly to there.

@Ozzy Sirimsi : Thanks.

I am asking my current agent to generate comps thru his resources and network. I will keep in mind there are new constructions that may be in the comps that I should not compare to.

@Ozzy Sirimsi: 

The property is in Barclay Baltimore. 4 Bedroom, 2.5 baths.

@Jaysen Medhurst: wow thanks for all the replies and questions. They are all very useful. I start REI and got my first investment property last year near where I live. But the market here is not easy to find deals which leads me to think of long distance investment.

1. It supposes to be a wholesale deal.

2. I dont know any agent in Baltimore. How can I get comps for comparison? I am relying on internet. I do have an agent but he is in NJ. Can a NJ agent pull out comps in Baltimore?

3. Thanks

4. I need to educate myself on this refinance process. I did it once to my primary residence. But I guess to refinance an investment property is different.

5. Got it.

6. Yes I figured out immediately after posting. The tax is about $150/mth and the insurance is about $70/mth so together it adds another $220 to the cost. So in the 30 yrs mortgage scenario, it will cash flow of $120/mth (i.e. 340-220)

7. If everything is valid, I think the 30 yrs scenario is

8. True.

9. I understand. I wish I could

10. OK. I will keep this in mind.