All Forum Posts by: Patrick Woodard

Thanks Deanna, that's what we're leaning towards.  And believe me Jeff, I'm picking up what you're laying down haha.  All kinds of options have come up, from storage to little art studios, possibly small efficiencies, etc., which are all still up in the air.  Either way, office or not, we are done paying the post office a fortune for a service that makes their job EASIER.  Think about it, we pay THEM to walk twenty feet over to the boxes and then actually drive to the building,  rather than them pack up a truck, park, and walk around all day.  haha.  What a racket.  Thanks for the response man, I'm on the same page.

Hi,

I haven't really overtly participated much in the forums, but am a longtime lurker, knowledge stealer, and podcast listener.  Anything I've ever wanted to ask or contribute has already been asked or contributed.  But I now have a unique situation and would like to get some feedback (from people outside of my non-real estate investing family and friends).  Also, I didn't really know where to post this, I'm sure there's a better forum, but looked through them all and didn't know which to use.  Here goes:

My business partner and I have been using a PO Box for several years, but now have an opportunity to have a physical address (I guess we always did, as does anyone with mf properties).

The idea started at our latest project, a six unit, three story building with huge basement divided into rooms.  Not only is the basement going to be nice for storage, but we began talking about moving our office there instead of our current office: my bedroom.  So then my partner had the idea to just start getting our mail at the building and stop paying for a PO Box.  I have already installed a 7 unit mailbox, 1 extra for us.  But here's the question:

What do we make the address?  The units are simply 932 9th Ave Apt 1, apt 2, and so on.  I would like to take the opportunity to make a "bigger" sounding address like 932 9th Ave, Suite 1000, or Main Floor, or (my fave) Fourth Floor (there are only three floors).  I think 932 9th ave, basement sounds crappy, even though that's the reality.

Has anyone else done something like this?  Is it as simple as hanging up a mailbox, making up an address, and they start delivering?  I've had a pain in the *** mail lady before who apparently knew the entire Postal Code, so I'm sure there's a rule about it.  I figure if I just started getting mail there, the mail carrier would just start delivering it, unless they are a rule nazi.  I mean, if I made a duplex out of a sfh, I would just name them apt 1 and 2.  I wouldn't go to the Postmaster to fill out whatever form they have, if they even have a form.

So, in closing, has anyone done this before? And secondly, What do you think a "good address" would be? I like any of the ones about, especially the tongue in cheek fourth floor one, but I'm sure the bigger pockets hive can do better. I would like it to sound bigger and more "business sounding" in case we start doing direct mail, or contacting banks for REO lists, etc.

Thanks!

Also, Robert Steele seems to be correct in general.  I don't know why, but unless it's a student, it usually ends up being a bad situation.  They tend to be unusually demanding, and just like the example of basement apartments attracting a strange type, this type of payment seems to indicate the same thing.  Usually, they can't manage money, don't take care of the place as well.  But, it's tempting to secure that rent!  

I've done this many times, and I usually offer discount for lump sum.  I probably wouldn't for students as much though.  I'm actually going through a problem of a tenant who wants to leave, and I want her to leave as well (she put a satellite dish on the roof!!).  She is paid up through Aug 2016.  I struck a deal with her that she would leave by July 31 and forfeit the extra month and DD in return for being allowed to leave early (lease ends in Dec).  I also added a clause in the release form that she will receive prorated amount back if she leaves early, ie, July 15 would get her half of one month refund.  Hope it works out, we'll see.  She is a strange one.  

But normally, you would owe her a difference.  Interest would depend on the state I believe.  Good luck.

Hi,

I have a strange question.  I am trying to mail out my 1099MISC forms to contractors, but I can't seem to find an "official" IRS form.  Their website says that you have to order them from them.  My father has turbo tax, and he can print them, but all copies are black, no red one for the irs.  We use buildium, and for some reason, they will only let you efile, and charge to do it.  I would go ahead and do it, but a couple of the contractors refused to give their tax id numbers, and buildium won't let me put "refused" in the place for taxid.  

So my question is, is there any problem with just sending an "unofficial" one, seems kind of a dumb thing, but the irs.....  The irs claims that they can penalize you for not using the correct official forms.  How much?  I wish I had more time, but Monday 2/1 is that last day to mail them.  Anyone have any answers or ideas?

Thx.

Hi, I've been a longtime member (lurker), but this is my first post.  I need some advise on what to do with the proceeds from a property I am selling.  Here are the details:

My business partner and I bought two fourplexes for 75K apiece with a 20K construction loan apiece, with no money down (REO). We have rehabbed the units and rolled the construction loans into the purchase loans. Both are now cashflowing, but we are selling one of them for 123K, for a profit of 28K. The decision to be made is whether or not to do a 1031 Exchange or not. It's less than a year, so it will be taxed as regular income, but if we do the 1031, the proceeds will be rolled into the new property.

What we are considering doing is to get another property and do the 1031, and after we have rehabbed the building, do a cash-out refi for 28K or more. Will we have to pay taxes if we write checks to ourselves from our LLC for 14K each? We want the cash, but if we are to be taxed on it after a cashout refi, we might as well not even fool with the 1031. Since the LLC is a passthrough, I would think that the refi would only increase the basis on the new property, not cause us to have to pay taxes for cashing out the 28K.

How should we go about this?  I thank you all in advance for any feedback or advice.  We've done some other deals, but nothing this "fancy".