All Forum Posts by: Susan O.

@Susan O., a lovely thought, to let accumulated interest pay the fee. And I'm sure there are some QI's out there looking at the escrow accounts as their own investment candy store and willing to treat you as a passive partner who brings the cash. But you probably want to be careful and ask a lot of questions about where your interest is coming from.

Because It's almost a certainty that in order to pay you interest a QI has to be receiving interest on your funds. If they are receiving interest on your funds it is probably because they are not held in a segregated account and definitely not in a dual signatory account. These are not cheap to set up and depository banks have plenty of free money from the fed to seed their investments they don't need to pay to get yours (hence current money market rates). Your trade off for receiving interest is dramatically lessened security of your funds.

In addition to less security there is a huge conflict of interest in my opinion. you also have a QI with a personal vested interest to make margin on your funds. You probably want a QI who is thinking and acting as a QI and not an investment manager.

Fees nationwide are pretty close - from 700 - 1000 for a normal garden variety exchange loosely regional. If you encounter an outlier ask questions. It could be your unique situation causing the outlier. Or it could be their lack of experience, economy of scale. Or it could be too good to be true - and you know that that means right?!

Most QI's charge that fee on the closing statement of the relinquished property so it is a cost of the sale reducing gain. It also protects you so that if the property doesn't sell you don't pay. The QI has no impact on the final outcome and since they consult throughout the process that fee is not typically refunded. If it was then you would have to declare it as income or amend your tax return to increase the taxable gain from the sale.

I've seen them online if you just google search them.

This QI is investing the funds. He is not an institutional QI

The actual balance is around $500k

0 Votes

Sure I will. I actually will in morning

I forgot to mention the total in funds is 500k and the property I'm selling is in california

0 Votes

Hey I heard that some 1031 exchange QI's will actually give interest payment on the amount they hold? Is that true?

For example--

$100,000 in a 1031 held for 3 months would cost the investor $500. If the QI would pay 1% intersest on the $100k for the 3 months. So the investor would gain $250.

So the investor would only pay the QI $250?

Also if the 180 days expired is it typical for the investor to pay the QI less fees?

What are typical QI costs?

(this is just an example not real numbers)

0 Votes

Originally posted by @Jack Gibson:

Thanks everyone, @Dave Foster was very helpful today per conversation and it turns out I need to have held my properties for quite a bit longer before I 1031 them

Hey Jack how long did Dave say you should hold them before a 1031 exchange exactly thanks?

0 Votes

Long story short this should have closed last week, but some crap came up from the bank underwriting. We're basically trying to save about 100k in capital gains tax so this is very important.....

I'm on day 172 of 180 for the exchange to expire.

Is there any creative solution to this?

First My Qualified Intermediary is a lawyer who said he can change or back date the 45 day period for identifying a like-property.

>Is there a REIT or something that I could quickly put the money in so I won't have to pay capital gains tax?

>Has anyone ever heard or know of a possible way to get an extension through the IRS on the 1031?

Does anyone else have creative solutions to a 1031 coming up to expiration?

0 Votes

Hi I'm a small time landlord and been reading BP for while. I just have a 4-plex little apartment in the Miami dade area

I've read a lot of mold posts and I'm not sure what to do with my personal issue with the tenants. There seems to be differing opinions on mold issues

The problem is that the building has had roof leak for while and still does.

Well one of tenants is claiming there's mold from all these past roof leaks. He lives there with his mother, but he's the only one on lease.

I think there were leaks and some have been fixed. It is just hard to locate after area of leaks etc. I've been trying to fix

What type of lawyers should I be contacting? Also anyone have advice-- should I get a mold inspector to go in? The one's that I've been contacting seem to want to really go in there and tear the place apart. I just want them to test what's necessary and if it confirms no mold then let me know. Are there landlord friendly mold inspectors? It seems like every website I've seen from mold inspectors they just cite all these potential issues and are pro-tenant. I understand though that IF there actually is a serious mold issue then it should be treated--especially if there were black mold

My fear is that the mold inspector might go in and have incentives to really find issues and try to get himself more jobs. From what I'm reading it seem like if you look hard enough you can find trace elements of mold in almost every home. --perhaps this is just an irrational fear.

Every time I've asked the tenant to pay he has told me that he is seeing a lawyer for the mold and a dr so he doesn't feel he needs to pay

I know this is real common in S Florida so if anyone else has experienced this please chime in

0 Votes

Hi I'm a landlord. Been reading forums for while posting now with some questions.

I have a 4 unit in miami dade county with a lot of issues. I bought it on a whim for cheap about 3 years ago and have had a lot of issues with it after moving.

One tenant that's a young couple are not paying rent for 2-3 months, issues with roof and leaks, tenants threatening lead paint and mold issues and not paying. Tenants are witholding rent claiming they have lawyer and keep saying they don't need pay due to it. I even got a letter from their lawyer a month ago.

I've been reading the forums a lot but have not posted.

Anyone recommend attorneys in the area who deal with tenants who claim mold issue?

Or any local landlords deal with similar issues?

0 Votes

All Forum Posts by: Susan O.

Susan O. has started 69 posts and replied 547 times.

Post: 1031 exchange costs and interest payments from QI?

Post: I have 8 more days to complete 1031 exchange.

Post: 1031 exchange costs and interest payments from QI?

Post: need a referral for a 1031 Exchange company

Post: I have 8 more days to complete 1031 exchange.

Post: Mold Issue In Florida -- Tenant evictions?

Post: Hi I'm a landlord in Miami Dade County - Tenant issues