All Forum Posts by: Richard Warren

In Nevada the rates are the same. However, there is an annual cap on how much taxes can be increased (a big problem when prices were soaring). Here is where the difference is - on a personal residence real estate taxes can rise no more than 3% in a given year but the cap on investment properties is 8%.

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That was a perfect example of how not to network, yet it’s something I see all the time. I’ve built several successful businesses by networking. The reason it’s worked so well for me is that I understand that it’s all about building a relationship, not making a transaction. So many people think that the purpose of these networking meetings is to get someone to buy whatever garbage they’re selling. The good news is that those people give up pretty quickly while complaining that networking is a waste of time. There’s a reason it’s called netWORKing, you have to work at it.

Here are a couple of articles I’ve written on the topic for the BP Blog:

http://www.biggerpockets.com/renewsblog/2008/04/28/the-power-of-networking/

http://www.biggerpockets.com/renewsblog/2009/10/05/networking-real-estate-success/

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I’m not an attorney and that’s really a legal question. I would imagine that the lenders would see a number of mortgages on your credit report and question your motives.

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What you describe wouldn’t be fraud, simply changing circumstances. It comes down to intent, the original intent was to live there. That shouldn’t be loan fraud unless the loan was obtained by deception.

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I have done this numerous times. It was ALWAYS disclosed and I NEVER had a problem. In some cases I had to supply LLC documents showing I was the owner and in others I had to sign a staement. It has never been an issue. I've been investing in real estate for 18+ years and I have NEVER heard of a situation where it was exercised.

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Just click on the 'Group" bar at the top of this page. You can search through dozens of groups.

For Denver Groups: http://www.biggerpockets.com/groups/search?term=denver&commit=Go

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That’s why I said it was the real simple version. The heirs get a step-up in basis and it is not subject to recapture. However, they are subject to estate taxes if the if the decedent has an estate sufficient in size to be taxable. Of course that can be mitigated through the use of advanced estate planning techniques such as Charitable Remainder Trusts, etc.

Again, this was just meant to be basic with the added recommendation that he do some more reading on the subject. When there is at least a basic understanding he should consult with a real estate savvy CPA to map out a tax strategy.

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The real simple version:

Any expenses directly relating to your business can be deducted.

Interest on Investment loans can be deducted.

Depreciation allows you to deduct a certain percentage of the value of buildings and property (not land) each year. The IRS has a depreciation schedule for all different types of property based on their life expectancy. There are caps on the amount that you can deduct. Another thing that people conveniently forget is that depreciation is “recaptured†when you sell.

These write-offs are used to reduce your taxable income but are subject to limitations imposed by the IRS. A real estate investor should, at the very least, have a basic understanding of how these deductions work. There are plenty of books on real estate investing that examine this.

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The credit has nothing to do with how the purchase is financed.

See the IRS site: http://www.irs.gov/newsroom/article/0,,id=206291,00.html

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While you and MikeOH are absolutely correct, I may have reads more into it. He indicated a need for 100% financing. To me that is an indication that he doesn't have much, if any, capital. If that's the case a personal guarantee isn't going to help. But one should never assume....

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