All Forum Posts by: John T.

Thanks for the advice. I think it might make the most sense to do the 1099-int and treat it as a loan. We don't have very much volume.

It's just me on all the loans/paperwork. We're looking for the most simple method possible. I own investment properties aside from the ones that he just invested in so I would like to keep my taxes as manageable as possible. 

I think I might just pay him half of the profit each month, minus the federal and state tax percentage rate that I am going to have to absorb when I file my taxes based on that income. It won't let him take advantage of depreciation and deductions, but I'm really not sure how I can accurately estimate those things each month. During tax season I could probably write him a refund check for the amount he had overpaid. 

Are there any legal reasons not to go with this approach? 

Hey all,

I have an interesting situation that I will need to deal with next year. My father is a year from retirement and has decided to withdraw his 401k to help me buy some additional investment properties. The deal is we will split the investment and profit, however I'll be responsible for all the paper work. Pretty good deal for him, right?! Anyway when I file taxes next year I realize I'll be claiming 100% of the income on my taxex, but I had planned on adding his portion of the profit as a loss on my schedule E, perhaps as a management expense. In doing this, what is the correct way to go about it? I don't have a business account or federal tax ID for the business since it has just been me thus far.

Can I just 1099 him at the end of the year for what I have paid him? Isn't there some law where if he doesn't pay tax on the 1099 it would become my liability? Please advise!

Thanks,

John

@Rick Pinney

I have found all of my properties on the MLS. I haven't generated any leads through my property manager or otherwise. I don't do any marketing. My ROI is around 40%.

@Account Closed

I am very unfamiliar with flipping. Do you know of any good resources to get started?

@Andrew Johnson

I totally agree with that. From a cash flow perspective it is devastating. An investment that would make net profit is now a net loss. I don't feel comfortable buying a property and losing money on it monthly only to hope I can sell it for more in a year or two to make the real profit. I mean I guess it's a viable idea on a single family home, but probably not on a multi unless it's in an area that has promising development.

I woke up at 3am and read a great article about this from a Harvard economist. 

That being said, what are good investments during times where real estate is somewhat inflated and out of reach? I'm considering buying season tickets to sporting events and reselling on the public market. I bought season tickets this year to a local pro team and have made about 20% ROI before counting playoffs. After a round of two of playoff tickets, I could be as high as 50% ROI.

Hey All,

What I mean by missed the opportunity is that I can't find the same deals as I could 3-4 years ago. There are nearly no foreclosures now and all properties in my area have gone up significantly in price in that same time. I'm wondering if maybe the time that I started investing was in the residual fallout of 2008. For example, I bought 3 duplexes in 1 year, for 65k, 50k, and 40k. They each brought in between 1200-1400 of gross monthly rent. Now the best I can find is a duplex at 80k making 1200-1300. After expenses and such, the ROI just isn't what I've grown accustom too so I have been saving looking for a better deal which hasn't come along in 6 months. What is going on exactly? I was looking to go commercial for some time but in my area the profit margins are much less than 2-4 units.

Thanks,

John

Hey all,

I have been considering buying a rental in the city of Lorain. Does anyone have any experience there? What kind of community is it? Is there enough demand for rentals there?

Thanks,

John

Hey all,

I am seeking a commercial apartment building in Cuyahoga County. If anyone could direct me to a realtor that would help me in my search, it would be greatly appreciated.

Thanks