All Forum Posts by: Tim Clarke

Thank you Benjamin

I have been looking for an apartment deal going on 7 months.  This is my first commercial deal and have been looking for 6-20 units that fit my other criteria's.  I have looked at a lot of properties. I find that most of the deals go from looking like good deals to bad deals, when the taxes go up because of the new recordable purchase price.  I know that I have to wait until January to file with the Board of Revision.  My questions are:  What is the best way to go about a tax reduction?  How often do they lower the taxes?  Is this something that happens often?   I hear that this is possible but may have come from unreliable source.  Thank you

Hi David.  
That’s what I’ve been thinking a lot lately.  Especially, in this market.  I need someone who is going to go after it.  Thank you for the reply and best of luck to you too.

I have been working with a commercial broker for about 3 months now.  We are trying to find an apartment building 6-20 units.  It seems like I’m bothering him a little when I call and ask for more information.  I run my own numbers if I can but need more information sometimes.  The other thing is that I always have to call him to find out what information he got or didn’t get.  I’m thinking about changing brokers.  Is having more than one broker bad?   I’ve heard both.  Meaning some people say stick with your broker and then I hear some people say they call every broker they can.  Any insight would be great.

Thank you

This is the long story short.  We had a house fire and lost practically everything. After the fire, our insurance company sent out an adjuster for the construction portion and another adjuster for the contents/textiles portion of the claim. During the estimating process, we hired a company to give us a bid and possibly do the work if it made sense.  The damage from fire, smoke and water are pretty significant.  There was a negotiating time frame after the numbers came in.  We agreed on the price but the last day of negotiating I found out the insurance company won’t pay for the land on the property I will be buying.  I lost about 30k because of this.  That was the 30k that took me two weeks of grinding out with my adjuster what needed fixed and what didn’t.  Anyways, I’m just using numbers to explain.  We agreed at $400,000. The house I want to buy is $450,000.  Land value of $80,000.  Which means there is $30,000 I can’t use to buy the house.   I still have to pay off my mortgage on the burnt down house.  So, I’m using a lot of my own money.  30k was a big hit.  There are many reasons we are going this route that I won’t get into.  We have 4 kids and buying a preexisting home is what’s best for the family.   

So, we found a house and started going thru the process. I'm a veteran and I am using the VA loan. I asked the mortgage broker over the phone at least 2 times and sent an email on the importance of the land value on the house we are trying to purchase. He told me that every appraisal has the land value. The reason I was asking so much is because I read that sometimes the VA won't put the land value on the appraisal. After being reassured several times it would be on it. It wasn't.

   My insurance company disregards the home that is lost and looks to the home I want to purchase.  Again, they won’t pay for land value.  The county has the land value at 75k.  For those who don’t know most of the time the county is less than what a appraisal will be.  The insurance company is now sending out an appraiser to figure out the land value.  If anyone has ever worked with insurance companies on a big claim like this knows that this is not good for me.  I REALLY WANT TO GET RID OF MY MORTGAGE GUY.  He obviously, didn’t take what I was telling him seriously and didn’t look into what I was asking.  I look at it like why should the broker make money off me?  It was such a simple request on my end.  I told him several times the importance of the land value and how my insurance company is nickel and dimming me.  I’m really frustrated with this guy.  We lost soo much and something I feel should have been avoided could and prob will cost me and my family more.

Can or Should I fire the broker?

If so, do I have to restart everything?

Do I lose my earnest money?

If anyone can answer these question and have any good advice we would appreciate it.  
Sorry so long it’s the shortest I could write it and still make sense.
 

Hey Sean.  Yes.  I’m trying to use their money without them getting taxed.  I understand that the initial pull from the 403b will be taxed but I’ve read a few books, heard on seminars and webinars that you can keep rolling an investors money over to another property without being taxed as long as it never touches their or my hands.  I’m being told different from the cpa.  Unless I’m just not understanding it???

Hey Dave.  The issue I’m having with the brrrr is that I want to refinance give them their money back or to a 3rd party and then reuse.  For example.  If I borrowed from investor 100,000 on first property at 10% interest for one year.  Fixed up, rent it out, then refinance.  Giving them back their money and interest.  So that would be 110,000.  Can I have that gain tax free if I’m putting into another investment? 

I am getting started and have an investor. They have a 403B, which is similar to a 401K. I spoke to a cpa and was under the impression that I could use a 1031 exchange as long as I am using the money for another investment. She told me that is not the case. In short. She said unless I buy one house then sell it then I can use the 1031 to buy another house. I want to use the BRRRR Strategy but again she said that it wasn't possible unless I sell the house. Any insight????

Thank you for the advice.  I’m currently in the process of getting seller financing on a duplex.  It is in a C to C- area.  I just have to agree to the terms.  Think I’m going to pull the trigger and try to get the ball rolling.

I get confused.  Some of the top investors seem to contradict themselves sometimes.  I understand in real estate there are many answers to the same questions.  However, I’ve heard top investors say on YouTube “ I wouldn’t want my wife to jog down this street at night by herself” and then in a podcast I hear the same person say “ my rule of thumb is that if my wife can’t walk or jog down this street at night then it’s a property I will not go after”. I’m paraphrasing a little.  Just confusing.  Another one is: screen tenants extremely well but a lot of the good same investors have section 8.  Can anyone clear these topics up?  Thanks