All Forum Posts by: Mahesh K.

Folks, I had been asked to do a Private money loan (secured by real estate) for an investor looking to buy a property in Nebraska. I had the following questions:

. Does Nebraska have judicial foreclosure or non-judicial foreclosure?

. Do I  have to have some kind of license to do a hard money loan in the state?

. Do you know of a lawyer who could help create a set of loan docs conforming to the laws in the state?

. What are typical hard money rates in the state.

Thanks.

Bruce Norris has a podcast in which he asks CPA's (Keystone CPA) whether interest income generated from Trust Deeds can be considerd as businees income. The answer was interest income (along with dividend income, capital gains) is specifically called out as not being considerd business income and hence will not qualify for the 20% deduction.

The property is held in an LLC. The idea of holding it in an LLC was to provide liability protection. Both of us have an equal 50% state in the property. Would the math be different if it was held as tenancy in common?

Thanks.

Thanks, that makes sense. 

The property is held in an LLC and we file form 1065, would this be considered a purchase of a share of a partnership or a sale of a property? I am not sure if this will trigger a property reassessment.

Michael,

I should have clarified:

. 112K was the basis of depreciation (i.e. 75% of the purchase price). We have already accumulated (claimed)  25k. 

Also what would be my cost basis when I go to sell the property?

Thanks,

Folks,

My partner and I bought a house for $150K in CA a several years back. The property is now valued at $300K. My partner wanted to sell the property or have me buy him out for $120K. So far we have about 25K in accumulated depreciation on the property (the value of improvements was $112K for the purpose of depreciation). My question for the tax gurus is as follows:

. After the buyout, what will be my new cost basis in the property?

. What will be my new basis for depreciation? 

. Who gets taxed on the 25K of accumulated depreciation after the buyout? Will I get taxed on that when I go to sell in a few years?

. Will the buyout trigger reassessment for property tax purposes?

Thanks.

Folks,

My tenants lease runs out on Jan 8th 2017. On November 15th 2016, I notified my tenant that after the 8th of Jan, we will continuing the rental on a month to month basis but with an increased rent (effective January 15th).

The tenants decided to move out December 10th, providing only 20 days rent for December. The rental agreement states the following: "Should Tenants vacate before expiration of the term, Tenants will be liable for the balance of the rent for the remainder of the term, less any rent Landlord collects or could have collected from a replacement tenant by reasonably attempting to re-rent."

I know in CA, we are required to refund the deposit 21 days after move out. In this case, that date would be Jan 1st. If I am unable to find a replacement tenant by Jan 1st, what are the rules around the deposit refund? Thanks.

I was looking to buy a 2-4 unit dwelling with two buildings. One of the buildings is a manufactured home on a permanent foundation (made by a company Hallmark) built in 2004. This one conforms to HUD building code and not CA code. The other building is a duplex, older and stick built.

Wanted to know the following:

. Will I have I have problem with financing?

. Any opinions about the manufacturer ?

. Other gotchas (buyer beware)  with this purchase?

Thanks.

Folks,

I purchased a cashflow property in a partnership back in 2010 which has performed pretty well (11 cap at purchase and 75% appreciation since purchase).

My partner now wants out (I would prefer to let it ride).  If I had the resources to buy my partner out, I would be looking at a property of about 5.8 cap. 

Another option is to use my capital to 1031 into another property. However, since  the property values in San Diego have appreciated significantly, income properties  are hard to find.   

Any suggestions on other RE investments that my capital can be easily 1031 exchanged into with a  8%+ cap?

Thanks.

A tenant of mine is taking me to small claims because she wants her full deposit back. Her deposit was $1350. In her notice (SC-100), in response to a  statement" : "You must ask the Defendant (in writing/phone/person) to pay before you sue. Have you done this? The tenant has checked No with reason: Cannot find him. 

My tenant made no attempt to do this. Now my phone no. hasn't changed and the tenant has contacted me  in the past via email (for other matters). So I am not sure why she provided that response.

Also the tenant is seeking $1300 (not $1350). $700 was refunded to her with a breakdown of all repairs/unpaid rent, so in the best case she should ask for $650. 

Anyway the judge in small claims can dismiss this because of procedures not being followed? Should I be seeking legal help for this as I haven't had to deal with small claims before. Thanks.