All Forum Posts by: Rich N.

unfortunately that is true.  The courts see it as a company and requires a lawyer.

@Nicholas Aiola

Thank you.  Unfortunately, our CPA has since retired.  So we are just looking for ideas and direction as we also look for a new CPA. 

Do you know of any tax type of form we can complete at the closing to redirect the proceeds to the four owner or direct it to the LLC so it would all pass through to the four?

Or how about some type of agreement that we can sign pre or post closing that the IRS would accept ?

We are learning from this. If we had enough time, we would of quit claim it over to the LLC and then sold it. Understanding this would of possibly trigger the due clause, but we would of paid it off.

We definitely learning, on our next properties, we placed them into the LLC.

@Nicholas Aiola

we reported everything through the LLC. All rents and expenses. Sounds weird now, but even the mortgage interests went to LLC not sure who SS# it actually got reported on.

@Nicholas Aiola,

This is going to be a good one and looking for ideas or direction and really appreciate any help you can provide.
1. bought a three family with 4 guys.
2. But the loan and deed is under 3 of us (4th would of hurt us more being on it).
3. its time to sell, but the Attorney says the funds can only go to the 3 named owners.
4. we did operate it as a LLC with four k1 reports each at 25%.
5. Told its too late to quit claim deed to LLC as the buyer is FHA backed and required 60-90 day season.

How do we split all expenses/funds/profits to 4 owners... in the eyes of IRS ?

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as long as pickup time is not too early because even though you have it at 5pm, they are really not late until midnight.  So, not to invalidate your 14 day notice, you should serve it on the 2nd.

So the 2 ways is to either go back on the 2nd to give it or pick everyone up on the 2nd and give it then.

Be careful of the individual contracts cause this could set you up as a boarding house. 

Also, new MA laws means you can not have more than 4 unrelated people in an apartment.

Hi,

#1 - As others have stated, you can not charge late fees until after 30 days, so it is better to serve 14 days notice for non-payment on the 2nd of the month.

#2 - You are right, you can do the 15th to the 14th, but it definitely mess up the timeline with other places.   This method won't last too long as once a tenant wants to move out, they will not be able to move in until the 1st.....they will stay from the 15th to the last day and nothing you can do about it. 

#3 - Most tenants live paycheck by paycheck,  trust me most of them will not have the funds to pay earlier for the discount.

#4 - in another posting you mentioned that it was to be 1/2 way thorough the month and you can remove them.  You will still have to go with a 14 day notice and then the rough 3-4 weeks for a court date.

#5 - your initial posting mentioned have then put money in your bank account.  Sounds great if you have great tenants.  But, if you have a bad tenant, you can go through the 14 day notice, wait out the 3-4 weeks court day and the day before you go to court, they can deposit some cash in the account, then show up at the hearing and say they made a payment and you accepted so therefore the 14 day and court hearing is  essential void.  Read up on this.

yep. I hear Santander bank does it.

@Rob L.  Thank You.  I am around Haverhill often enough that I can read the meters on a quarterly basis to save me some money!

@Alex Cornwell Is that 360 - 450 monthly or quarterly ?  My quarterly for a 3 family can run that range.  If its monthly...wow!  That would drive me nuts. I would be doing like @Rob L. and cutting over to sub-meters in a flash.

@Kush Patel

This is the point of sub-metering and billing ourselves.  The whole bill is still on the landlord, but you sub-meter and charge the tenants for their portion.  This is one way to reduce your cost (in a manner of speaking raising your rents).  But the true thing, in my opinion, is making the tenant pay for their runaway cost.