All Forum Posts by: Mark Murphy

Is anybody successfully doing realestate deals of any kind in Brisbane ?  I'm sure there is something that works here but I haven't figured it out yet.  Any advice would be greatly appreciated !

Agree with Anish, it was a lot less expensive for smaller property owners just a few years ago.  It works ok, but some obvious issues have never been addressed, like notification for lease expiry.  A lot of features you never use also, and so you end up paying for a high end software, when all you need is something to get the job done.   Changing to a different package is very difficult, so once you're in your stuck there, otherwise you loose a lot of data you've add over time.  All this being said, I'm not sure there is any better alternative that I know of.

There is not much activity.  If you can befriend the right broker they can create a list of all properties (on and off market) for you in your target area with your criteria, and you can send unsolicited offers. But in good areas, this is not working either right now.

Hi Federico 

that part would be quite straight forward.

Mark.

I am an Australian who has been living in the US on greencard for 18 years.

I am curious what options there are to keep my rental property (8plex) here if I return to Australia.

I know it is not a simple question, and the likely answer will be "it depends on a host of issues". 

I understand that if I keep my current LLC I will pay a gross basis 30% tax on total revenue, and I'd be ineligible to claim expenses. On top of this the estate tax is limited to $60k, and selling the property would incur 10% FIRPTA gross-basis withholding tax, not to mention the Australian Tax implication.

Obviously there are many considerations and hope someone is able to explain the options simply.  Is there any structure that will allow me to keep the property with reasonable tax consideration ?  

My objective for keeping the property would be to have a flexible investment (must be able to sell at any time without incurring massive tax liablility) and that provides reliable income stream.

thanks

Mark.

I agree - how did you find this deal ?

I think williampaid has just shut down.

Has anyone used cozy ?

Thanks for the reply.  I would think that since none of the 20% down is going toward paying down the principle that it would all be treated as capital gains. 

Let's say I am looking at owner financing the sale of a property.

Lets assume I bought the property for $100k with 20% down, and 5 yrs later sell for $200k, and owner finance 5yr balloon with 20% down @ 6%  and 30 yr amortization.   

The purchaser is looking at 160k loan.  Monthly payments will be $959, initially with $800 in interest and the remaining in principal.

My questions are

1) How is the 20% down taxed - is that taxed at profit and applied at capital gains rate ?

2) How are the repayments taxed. (interest vrs principle ?) What is the impact of the remaining loan on that income (completely offset, or offset only the interest portion ?)

3) After 5 years how is the payout taxed. I would assume capital gains on the remainder of the gain after removing the principle repayments ?

I expect this is a very complicated question with many factors such as depreciation and capital improvements involved. However, I am looking for as simple as possible high level understanding of the tax consequences excluding all the aux factor in order to make a real life decision.

Thanks !

Is it possible to do a 1031 exchange on a property I wish to owner finance, after say 3 years. This way I can minimize the tax in the short term and give me some time to find the next deal, and also let's me defer the remaining tax liability of the sale ?