All Forum Posts by: Account Closed

@RyanFlannery, thank you for the info. 

So it's reasonable to request to do an option fee instead of a non-refundable deposit since I have not completed my due diligence as of yet? 

I have a question about buying a property through a wholesaler. 

Is it normal for there to be a nonrefundable deposit (say, $500) in addition to the assignment fee? The deposit is only refundable if there are issues that come up with the title. It does go towards to purchase price but is not refundable like a standard earnest money deposit would be. So if something unexpected is uncovered during due diligence I can't get the deposit back. 

Is this normal or should I negotiate that this fee be waived or changed to a standard earnest money deposit that would be refundable under certain circumstances? 

@lynnetteE this is similar to what I was thinking. I wasn't sure if a lease could be assigned or transferred. I realize you can do this with other types of contracts (like a purchase agreement). 

Does anybody else have any experience doing this or something similar with a SFH lease agreement?

@darylluc I agree I don't want to trigger any taxable event. I also don't want to keep the rental in my personal name longer than I have to, for liability purposes. There may not be any other option accept to wait a bit, transfer the title when appropriate, then get a new lease signed. Thanks for your input.

I have two questions about leasing a SFH that I hold in my personal name (because I recently purchased it as a replacement property for a 1031 exchange in which the relinquished property - a vacant lot - was held in my name) but will soon be transferring into an LLC.

I was told by my closing attorney that I should wait "a couple of months," at least until after the new year, to transfer the title into the LLC in order to avoid any tax implications. I don't know if this is actually necessary.

My first question: Is there a certain length of time I need to keep the property in my name for the 1031 to remain valid?

I have a tenant moving in 1-4-20. If I lease the property in my name I would likely have to get a new lease agreement signed when the title is transferred to the LLC.

My second question: Is there some clause I can put in the lease, such as "and or assigns," that would allow me to assign the contract to the LLC at a later date, without having to get a new lease signed after the title is transferred?

If anybody has any experience with a similar situation or advice on how best to handle this I would greatly appreciate it. 

Thanks in advance and happy holidays.

Seleem

Thanks @Elizabethshelby. I'm in Georgia. That was my assumption - that I could terminate if issues came up during inspection (within the due diligence period) and not have to forfeit earnest money. Just seeking some reassurance. Hopefully, the seller will concede on the price but just in case I want to make sure I'm protected. Thanks again for your input.

Question for the BP community. What are the conditions that allow a buyer to get their earnest money deposit back during the due diligence period, if they decide to back out of the deal due to issues uncovered during inspection? 

Example: House under contract. Inspection and walk through with contractor reveal significant decay/rot in parts of the subfloor (likely due to a previous bathroom leak). If buyer asks for concessions on price to fix the problem (since it was not known about when the offer was made) and seller refuses, can buyer back out of the deal without losing earnest money?

Any and all advice is appreciated. Thanks in advance.

I am in Savannah. Currently looking for SFH's for long term rental. I'd love to connect if you have any potential properties. Would also consider small multifamily properties.

Thanks @Dave Foster for your detailed response. I appreciate your insight and expertise! 

Thanks @Stephanie Martinson for your response! I appreciate the information.