All Forum Posts by: Stephen R.

I'm looking for ideas on how to structure a deal for a seller who is moving into a low income senior living. The property will be a full rehab, fix and flip and is owned free and clear. Seller is willing to owner finance but cannot afford the additional monthly income (the monthly payments would make her ineligible for the HUD senior housing) I'm trying to avoid a typical all cash deal.

Usually by check, a few times with a credit card.

I hired a carting company to provide dumpsters for a rehab project. The company never sent me a completed W9. When I again requested one the provider told me his accountant told him one is not necessary as the carting service should be deducted as material. The online research I did seems to indicate a regular trash removal service would qualify as a utility and therefore not require a 1099, but a non-utility service such as a dumpster rental would necessitate one, although it’s not entirely clear.

Am I required to provide a 1099 for a dumpster rental service?

I'm looking for an appraiser in the Fairfield CT area. Preferably someone who deals in new construction and higher end properties. (~$1m range)

I am looking for creative finance options that will help get a seller out from under a condo with a FMV below what he paid. This is not a potential short sale, (and the seller won't accept that as an option) but in a market with flat appreciation the closing costs and realtor fees will bring him below what he paid about a year ago. The property would be a great rental but the association is at their 49% rental cap.

Is there an option that involves terms, or something similar (much like a lease option) that would allow a buyer to pay more over time while still transferring ownership now? 

I've begun to learn that the...how do I say this nicely?... individual idiosyncrasies, particularly of the town building and zoning officials, can have a tremendous impact on the speed and success of a project.

Has anyone had any personal experiences in Newtown, CT? 

I registered my real estate investing business with the CT Department of Revenue Services and the questionnaire mandated I apply for a Sales & Use tax permit. I have a C corp and hire a CG, to whom I issue a 1099 at the end of the year, to complete the rehab on any properties. I am only rehabbing residential real estate, and my contract with the GC is both labor and material included or labor only, with my purchasing the material separately. I am also a licensed real estate agent.

I have read through the DRS website regarding the services which are subject to Sales and Use tax, and the information by industry type, (none of which include real estate) and can't think of any instance in which I would be subject to tax. When I contacted DRS they claimed I would be characterized as a building contractor. However, even if that were accurate, which I don't believe it is, I still can't understand a point at which I would owe sales and use taxes. Even if I purchase material separately, any required sales tax is collected at the time of purchase. And according to the regulations, labor is not taxable on residential real estate.

My only thought is that when filling out the application I inaccurately selected “yes” when asked “Do you sell, or will you be selling, goods in Connecticut (wither wholesale or retail)? Would the term “goods” not be applicable to the sale of real property, a house?

Have any other CT investors been required to register for a Sales and Use Tax permit?

Thanks @Scott Hollister. 

Hey @Nelson Del Castillo, I'd agree with the other posters and would want to confirm if there is an underground oil tank on the property, which seems likely. The city may have records depending on the year of the house. Otherwise the removal company can conduct a test to locate it. If the house was converted to natural gas prior to removal of the UST being mandated it may have been left in place.

I've used Absolute Tank Removal LLC out of Milford for a couple properties and been very happy with them.

I've been lucky and never had a leaking tank; the removal of a non-leaking tank runs about $1,500. Removal of any remaining oil in the tank runs about $0.85/gal. I had one tank with 485 gallons in it so that can add up. 

As I mentioned, I have been fortunate and never had a tank removed that was leaking but was quoted the soil remediation for a leaking 550 gallon residential runs in the $11k-$13k range. It can be more depending on the soil type and extent of the contamination but that is an average clean up cost. If the contamination in you case has extended to a water source I would expect it to be considerably higher.

I'm looking for a first floor, 1-2 bedroom with a $1,300/mo max in the Bridgeport to Norwalk CT area.

I'm negotiating an off-market duplex purchase right now. The seller is a single gentleman who has over 30 years with a municipal employer and has lived in the same house for almost 25 years. His income is more than 3x rent, he has no eviction or criminal record history.

Despite his stable employment history he recently filed for chapter 13 bankruptcy and is selling because of the pending foreclosure. His credit score is below 650 and he has no one to cosign the rental app. He tells me his financial troubles began when the tenant in his duplex (a family member) stopped paying rent "years and years ago." Without the heart to evict her, his road into financial difficulty began.

If anyone has a rental property that meets this criteria and is willing to assist please reach out to me. Although he is able to move immediately the short sale process will not be quick so please consider future vacancies.