All Forum Posts by: Stanley Bronstein

@Chris Gottshall Typically, each state has rules and regulations for the payment of commissions from your broker to you. Those requirements are usually state specific and they can differ from state to state. You should be checking with the state board in which you are licensed for questions about how to structure your LLC (as it concerns the payment of commissions). The attorney you're working with should be able to help you in that area.

@Emily Chen Is your property manager licensed by the state?

I know some states require you to have a real estate license to do property management.

If so, you might want to look into filing a complaint with the state licensing agency.

The Qualified Intermediary works with 1031 exchanges every day.  The lender presumably doesn't. If you and your spouse were on the relinquished property, you should also be on the replacement property as well.

It all hinges on the definition of taxpayer.  If you and your spouse were the taxpayer on the relinquished property, you also need to be the taxpayer on the replacement property.

Here's an online article I found with some info about the debt replacement requirements:

http://www.aptmags.com/blog/1505/1031-exchange-debt-replacement-requirements.html

May I strongly suggest you talk to a real estate tax attorney, or knowledgeable CPA in your area and get appropriate guidance.

The last thing you want to have happen is a defective 1031 exchange.

@Barry Brandenburger Let us know how it turns out. I think what the first title company was telling you was bogus. To me, an assigned contract is NOT a double closing. The only times I've ever had to do a double closing was when the Seller needed to get it out of their company and into their personal name or another company (or vice versa) BEFORE selling.

Since you're on the buying end, it shouldn't matter, provided your contract with the Seller gives you permission to assign the contract AND the Buyer agrees.

@Christopher Brainard is correct, and his logic applies to all situations, not just the world of real estate. Everyone is entitled to get paid for their work and everyone is entitled to make a profit.

For example, I paid a plumber the other day to rebuild a toilet in my home. He charged me the going rate and it was more than I would have liked.  However, I told myself that he's entitled to make a living and his time has value, just as my time has value.

I cut him his check, shook his hand and said thank you. He was a nice guy and I'll probably hire him again the next time I need something.

@Trevor Dominique.  As @Pete Schmidt suggests, get yourself a knowledgeable real estate attorney and have them help you structure the transaction. It will be money well spent, as you will get valuable experience in the Seller Financing arena that will serve you in future deals.

@Jon Dang for single family homes, I don't think it's very likely that you will be able to secure commercial loans.

@Mike Cumbie raises good points about the tenant potentially being able to charge for some of the things you billed him for. That's all the more reason why I say pay the $150, GET A WRITTEN RELEASE (even if it's just a text message from them saying they release you for the $150), and then move on down the road. It's not worth the brain damage ...

Generally, I have found that what goes around comes around, especially in the commercial arena. While I work in the 5th largest metropolitan area in the country (Phoenix) and a lot in the 4th largest metropolitan area (Houston), it's a surprisingly small world. If you start messing people around (or you are known for having clients who mess people around), it catches up to you.

@Kellie Frantz I would cut them a $150 check and make them sign a simple release letter in order to get the check.