All Forum Posts by: Bruce Kozak

sorry...when I say "property nobody wants to buy" at the end of the thread above, I meant "vacant property" (on which taxes would need to continue to be paid)...very hard to sell!

Yes, I can see this approach too and have thought about that. Still, I am considering looking at the savings for this approach and the costs of demoing a partially burnt building & cost of property tax over the years for a property nobody wants to buy...?

Bruce

To Ali's comment, regarding "At-cost" coverage for rentals where the Landlord isn't interested in rebuilding, I would be interested to know what most Landlords are thinking/doing relative to the two (2) options mentioned (At-cost vs. full replacement). For instance, if a Landlord is now able to walk away with a check to pay-off any 15-year loan that is still in effect and keeps the $ difference up to the market value, then a totally burnt down rental unit isn't a financial heart-ache....but, he/she still owns the burnt or partially burnt property that would need to be demo'd, and property sold (unless the Landlord chooses to pay property tax on the land for years to come, as it wouldn't be very marketable in most cases)...or, is the thinking to let the locality incur the cost of the condemnation of the partially burnt unit?

I am just trying to get my head around this so I can justify backing away from full replacement coverage.

Bruce

Thanks (belated) to Steve H. regarding my earlier question on whether a SDIRA's LLC is to report to the PA Dept. of Revenue. I now see it does not per the info you provided!

Thanks.

Bruce

Hello All,

Relative to SDIRAs, I see the form 5498 is filed each year with the IRS for contributions or current account value; or 990-T for UBIT-related.

Would anyone happen to know what is filed at the State level (I expect this is rather variable by State). I happen to reside in PA, where my LLC is located pertaining to my SDIRA.

regards, Bruce

Thanks Wayne. Sorry if I said it poorly. I realize it gets signed by Seller and Wholesaler, but "when" ; i.e. only when a buyer is found or before, when Seller and Wholesaler first agree on a sale price? If the latter, then I understand unless the Wholesaler has the funds to buy it himself (even though he/she plans to assign it) or has a Buyer lined up, it's considered to be unethical and not in Good Faith - unless an Option Contract is signed by Seller and Wholesaler in which the Wholesaler just states he has the option to buy the property for x$ in y days...

Sorry, I am still learning about Wholesaling and have surmised much of what I am saying here...hopefully you or someone can clarify for me...

thanks

Bruce

Hi, To the last point, what if the Option Agreement didn't say anything about finding a buyer, but that you as Wholesaler just had the Option to buy it (and of course assign it)? Then, would that avoid raised eyebrows about acting as an unlicensed agent?

Bruce

sorry, I get it now: Present a pre-filled out Purchase Agreement to the Seller, leaving out the price as said; and it doesn't actually become signed until a Buyer by Seller and Wholesaler until a buyer is found...(?) ...and to prevent the Seller from wondering to other Wholesalers, include an Option Agreement from yourself (with an Option fee)...if so, what would that fee be?

Ok, I get all of the above except the part in the last thread about the "Purchase Agreement"...whenever i bought properties from Wholesalers, the Purchase Agreement wasn't signed by the seller and Wholesaler until a Buyer's deposit was put into Escrow... It seems to me that the only Agreement a seller would be signing is an Option Agreement...what else would they be signing if not either a Purchase Agreement or an Option Agreement in the absence of a Buyer not yet found?

Bruce

How much is typically offered ($) to the Seller for the Option Agreement, and is it typically 30 - 45 days?

Bruce