All Forum Posts by: Tom Tran

Hello fellow REA investors,

Can anyone help me answer the question below, I know this should be ask an Accountant, but I just need some general ideas of the tax implication. Here is the scenarios:

1. We bought an apt building for $300,000

2. 1 Year later we were able to sale it for $500,000

3. We did a 1031 exchange into a $2.1M apartment

4. We have it under contract for $2.5M in 3 months since we closed on the second apt.

We will plan to do another 1031 on the sale, but if you in case we are not able to find another property to exchange into, what will be the tax rate, is it going to be ordinary income? or will it be short term capital gain tax rate? or is it going to be 15% since its consider investment property? The title is an LLC entity with S-corp as filing type.

Thanks in advance for your info.

Tom.

I am currently investing in multi-family property in the Central Florida area.

Hello fellow RE Investors,

Does anyone know the best answer to this issue?

We closed on a property about a week back, and the settlement statement show that there was over $3000 of credit rent. After the seller signed and the transaction was closed. The seller asked the title company about the mistake rent calculation and they are asking us to return the $3000 to the seller. Have anyone encounter this issue and what was the outcome?

Thanks in advance,

Tom.

Hello fellow landlord,

Does anyone have issue with illegal dumping at your apartment? We are finding furniture and trash being dump at our trash site that does not belong to tenant that live at the apt complex. I wondering if anyone have any solutions to this issue. We have sign posted for fine illegal dumping but its not working very well.

Thanks in advance,

Tom.

Hello,

Does anyone have a sample of a BIO for a real estates investor I can use. I just need a format to what to include. Banker is asking for one to financing an apartment complext.

thanks in advance,

Tom.

The seller is the owner of the property. We also provided proof of funds bank statements showing that we have more than 25% down with the offer.

Hello,

Is it normal for seller to asked for 5% escrow down, and 10 days to get financing on the subject property? We have an agreed price for an 18 duplexes at $900k, we put in the agreement escrow of $20,000. My question is why the seller is asking for such a high escrow down? the contract is contingent on financing and inspection so we would get that money back anyway...can you guys help understand the reason behind the seller request?

thanks, Tom.

Hello,

I received a letter from Osceola county stating that I need to get a State license to rent a 13 units apartment building in Osceola county for long term tenants. I called the State licensing dept and they said I do have to get a Business licence under hotel --> nontransient tenant license. Is anyone else having to do this for renting apt building? I did not have to this in others county in Florida is this specific to Osceola? What is the cost associated to the license yearly, any ideas? I applied for the license which cost $117.50, and will have to pay a small fees to do the transfer with the county, but I am hoping not have to pay sales taxes, etc.

thanks, Tom.

Hi guys,

I am currently evaluating a refinance with a blanket/portfolio loan to cash out for a purchase of a 13 units...I exploring both avenues for loan; 1) conventional loan via WF which quoted around 4.75-5.25% or 2) blanket/portfolio loan cash out from a private lender company for 6.25%. If option one was approved, then of course I would go with option one...but for whatever reason option was not doable, is it worth to go with option2 with the cost of financing at 6.25%?

If I am approved for option 1, it would get about $1800 cash flow per month.

Option 2: with the higher rate, my cash flow is only $1400 per month...but also effecting my current loans of the 4 houses with the rate of 4.25 to 4.875.

If for some reason I am not approve for my option 1 loan, does it make sense to go with option 2 with a smaller lender? My goal is to expand my portfolio, but does it make sense to pay a higher interesting rate to get the deal done, but with less profits? I understand that there is some profits better than none...what do you guys think? have you ever been in this situation and how did you arrive at your decision.

Thanks in advance for reading my question.

Hi guys,

I am currently evaluating a refinance with a blanket/portfolio loan to cash out for a purchase of a 13 units...I exploring both avenues for loan; 1) conventional loan via WF which quoted around 4.75-5.25% or 2) blanket/portfolio loan cash out from a private lender company for 6.25%. If option one was approved, then of course I would go with option one...but for whatever reason option was not doable, is it worth to go with option2 with the cost of financing at 6.25%?

If I am approved for option 1, it would get about $1800 cash flow per month.

Option 2: with the higher rate, my cash flow is only $1400 per month...but also effecting my current loans of the 4 houses with the rate of 4.25 to 4.875. 

If for some reason I am not approve for my option 1 loan, does it make sense to go with option 2 with a smaller lender? My goal is to expand my portfolio, but does it make sense to pay a higher interesting rate to get the deal done, but with less profits? I understand that there is some profits better than none...what do you guys think? have you ever been in this situation and how did you arrive at your decision.

Thanks in advance for reading my question.