All Forum Posts by: Serdar C.

My renter agreed on the increased rent starting new year, but only paying the old rent amount. I messaged her about this issue, but did not get any response. How should I proceed? How long do i have to wait before I can evict her? Do I need a lawyer?

In this particular case, I found the developer from my personal contacts. However, I recently invested in another townhome project and I found that thru this thread. The developer sent me a private message and offered me the investment in his project. I see syndications offered all over internet thru companies like crowdstreet, but this type of investment is not offered on the internet for some reason.

Great question. The developer is currently working 8-9 projects. He needs probably 10 million plus to put the down payment for the loan. He also buys the land before applying for the construction loan. That's why he needs the investors.

A townhome developer in my town is looking for an investor for one of his new townhome development. He already purchased the land and did the due diligence. He needs investors to finance the down payment required for the construction loan. If everything goes as planned, investors will get 15% annualized return. The return could be higher if there is appreciation during the development phase. The minimum investment is 100k. If the investment is profitable, investors will get the first 6% of the profits before he gets anything. If there is a loss, bank will be paid first and then the investors will be paid according to their contribution.  He showed us his data about his prior developments and none of his developments for the last 10 years lost money. His past average was about 13-14%. One other thing I need to mention that this is an equity investment, not debt investment. Every investor becomes a partner in the townhouse development.

I read so many books about real estate investments, but have never seen such investment mentioned. Even in biggerpockets, I only saw one thread about this. Why is that? 15% seems like a great deal in the zero bank interest world. What am I missing?

I think the best way to invest in companies like fund that flip is to diversify away the risk by being invested in 50 or more investments. If one of the investments go south, you will still be okay. I had close to 80 investments and did not have any foreclosures so far. it will eventually happen, but it will not be an issue as long as foreclosure rate stays low. I think right now it is 2%. I also stay away from judicial states since the foreclosure process can take a long time. Luckily, non judicial states are usually the fast growing southern states so it is not a problem.

Vania,

What is the specific investment (location and investment number) you invested in that you had issue with?

How was your experience with realtyshares after bankruptcy? did you have any principal losses? How was your overall return?

Basit,

According to the link below, only time you use 4797 for your rental property if you are in the business of renting properties to earn a full-time income. If you have just one rental property and renting out properties is not your main income, you need to report the loss in schedule D. It is a capital loss, not ordinary loss. Am I missing something?

Is Rental Property a Capital Asset and How to Report It? | Taxhub (gettaxhub.com)

"Although the most accurate answer for the classification of a rental property sale would be “it depends,” the vast majority of the people will have a capital gain or loss on their hands. The only other alternative is to have something known as the “sale or disposition of business property” that gets reported on Form 4797. Even in this case, however, your long-term gains will be classified as capital. The main difference is that your loss is ordinary, and the most that you can deduct is $3,000.

The only time where you will have to submit Form 4797 over traditional capital gain form, which is Schedule D, is when the asset was business-held. In other words, you must be in the business of renting properties to earn a full-time income. Since most people in the U.S. use rental properties to generate supplemental earnings and are not in the full-time real estate business, it comes as no surprise that From 4797 rental property sales are nowhere near as common as the Schedule D ones."

Jason,

I am looking for an insurance company as well. I will appreciate it if you can send me the info as well. Thanks.