All Forum Posts by: Umesh Chokshi

Hello Ryan and Dave,

Thanks for meticulous responses.

I talked to my lender and QI both. Suggestions given by you both are similar to what they are suggesting.

QI says that have two separate Single Member LLC owned by each spouse 100% so it will not change tax payer.

Lender says that he can lend money on individual borrowers and there is some HOLDING PERIOD for 1031. He was not sure about duration of that holding period but I think that it should be any financial year. Then transfer it to the name of LLC.

And I believe that Disregarded LLCs are allowed in the state of NC. Let me check with lender too.

Umesh Chokshi

Hello ,

Good morning. I am listing my residential investment property in a day or two for sale and want to do 1031 Exchange. I have one technical question about this transition.

In relinquished property, my wife and I are on title. So all the sales proceed will got to escrow account of QI with our individual names and SSN. Now when we buy replacement property, we would be buying in the name of LLC with it's own EIN and would be treated as separate entity for taxation purpose. So if we open LLC and get finance in the name of LLC, we would loose benefits of 1031 Exchange and would be responsible for paying taxes. So how to deal with this situation? Can we get financing in our individual names till we convert it later in to LLC?

Need your help as I am confused.

Thanks,

Umesh Chokshi

Hello Everybody,

Thanks for your response. I was sick and down with fever and could not respond earlier to any one and I am so sorry about that. I will try to get in touch with you or PM you soon.

Thanks again

Hello 

I am looking for doing 1031 Exchange of my two properties. I am looking for QI. Does anyone has any recommendation based on their experience?

Thanks

Umesh

Got your point. Let me check on that. I am visiting site next week in person and will try to figure out their operations and will update this group.

Thanks everybody for their valuable inputs.

Joel,

It is nationalized bank. DSCR, based on current numbers is 1.52. They have agreed upon for 25 years of amortization. Banks who is planning to finance this project is tenant on this property which I am planning to buy. I have no idea about Dark value as appraisal has to be ordered.

With current STNL, this is 22nd year of the same tenant in this building. In current lease , 7 years have been left. Still they are left with two , five years of lease renewal options left on the property. This fact and past history is also taken in to the consideration by lender.

What are your thoughts with this clarification?

Thanks

Adam,

Great piece of advise. One of the tenant ( Fortune 500 ) is in the building for last 20 years. They recently renewed in 2016 Dec for 7 years, They still have two options left as per current lease to renew for 5 years each with rent increase of 25%.

I will certainly keep an eye open on all of your suggestions when I visit property in person next week.

Thanks again for detailed response.

Umesh

Hello,

Good afternoon everybody !!

I have been doing Residential real estate as Realtor, Investor and Property Manager for last 7 years. I have decided to jump to commercial real estate as an investor. Currently I am considering two Single Tenant properties with 7 years of lease remaining on each of the property. One is national tenant and another one is multi million dollar manufacturing company. Both lease are guaranteed by corporate HQ.

Both properties are above $3.5MN purchase price and I have never purchased property of this price.

I would like to seek advise of an experts from this group that what are the due diligence steps need to be taken for lease validation and this purchase? Is separate attorney required for this? I know lender is asking for Phase I EPA report and appraisal.

Any other suggestion is highly appreciated.

Thanks in advance.

Umesh Chokshi

I need to know Fraddie Mac guidelines for PMI. Usually, when your LTV reaches to 78% LTV ( Primary or Investment ) your PMI gets removed from your your monthly payment. In one of my loan sold to and served by Wells Fargo Bank, they are saying that they can remove PMI only if LTV is 65% or less.

Can some one please help me ? How do I dispute this? Or they are correct? What are my options?

Thanks,

Hello,

There are different views from CPAs I have worked with for claiming closing cost expenses paid for refinance while filing your tax return. 

Which closing cost ( expect for points ) can be claimed towards closing cost for either new purchase or refinance of an investment property?

Thanks,

Umesh