All Forum Posts by: Michael McDevitt

If I were you, I would look for large commercial buildings that looked empty.  Make a list of the ones you find and then search the county assessor's website for the contact information of the owners of these buildings.  Then contact each one, to see if they are interested in selling to your buyer.  Who knows, you may get a few listings out of the exercise too.

From what you wrote, there probably isn't much you can do. Even if it is a it slimy, the seller is free to entertain other offers. You didn't have a contract until both parties signed it. If you aren't happy with your agent, my advice is to find another one. There are lots of agents out there. Find one who hustles for his/her clients.

Just a guess, but I think it means that the person saying that believes in leverage provided when you finance a purchase.  I could be wrong though! 

You aren't required to remove the vacating tenant from the lease.  If he/she signed the lease, he/she is liable for the entire lease term.  i wouldn't remove him/her.

You are not obligated to renew a lease. You don't even need a reason not to renew.  A lease is a contract and once the term of the lease is up, that's it!

That all sounds great, assuming the investment performs the way the example works.  What happens if: the rehab costs more than expected, the flip is delayed or the sales price is lower than expected?

I am not trying to throw cold water on your plan, but be sure you understand the risks involved before investing.

I am a CPA and have seen many 1031 exchanges over my career.  I can't remember one that got blown up because the taxpayer couldn't close the replacement property.  I am sure it happens from time to time, but it isn't very common.  As @Russell Brazil stated, locate the replacement property as soon as possible.  Many of my clients start looking as soon as they list their property for sale.

@Ceril S., i own a 37' RV.  Yes, they depreciate like crazy and there is constant upkeep/repairs too.  How did I minimize the loss and justify the cost?

1. Only buy used.  Mine is a beautiful 2004 higher end model that was well over $100k new.  BUT, I bought it two years ago for $25k.  It had less than 10k miles on it and was in very good condition.

2. I justify the cost, by chalking it up to just the cost of being able to go on vacation any time we want, go any where we want, and enjoy the beautiful outdoors here in Colorado!

The reality of late paying/non-paying renters is, at least in my experience, when they give me multiple excuses about why the rent is late, I am not likely to see the rent.  But, since you don't yet know this tenant, if you want to give the benefit of the doubt, I would give them a letter that says: if they don't pay the September rent by Monday, you are evicting.  If the October rent is not in your hand on October 1st (and every month after), you are evicting.  From my experience, you will find out very quickly if the tenant will play ball. 

The breed isn't the problem,  It is jerky owners who make their dogs vicious.  I highly doubt a deputy is that kind of dog owner.  As long as your insurance company has no problem, she should be a good tenant.  Of course, the dog may still damage your property (pet urine, chewing, etc).  make sure you get a large enough deposit!

Perhaps my post wasn't clear, @Jenifer Levini. I was responding to the OP's post when I said to take the money from one and contribute to the other. I wasn't clear in saying that there should be a distribution from one LLC to the OP and then she takes the cash (now in her hands) and she contributes that money to the other LLC. I don't see that as piercing the corporate veil because you aren't comingling funds.

I am not an attorney and was responding as a CPA.  However, in my professional experience, a lawyer with a suit against one of the LLCs or even the OP, will include all of them as defendants.  That is pretty common practice here in Colorado.