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9 January 2025 | 16 replies
Gita,At least the way I prefer to do things is to only run accrual based accounting activity on my day to day operations.
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6 February 2025 | 15 replies
The contractors who do work for me have zero issues with me sourcing the material if disclosed up front and not holding them accountable for any material issues.
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13 February 2025 | 8 replies
. --- Once I'm ready to make the move, I can speak with a lawyer and a RE Tax Accountant to find out what's the lowest allowable to avoid that trigger.
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20 February 2025 | 8 replies
You should have had a conversation with an accountant prior to going ahead with the cost segregation study.A cost segregation study breaks down a building to more components than just building and land.
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31 January 2025 | 11 replies
You don't know, what you don't know.Bigger Pockets is a great place to find a tax accountant specializing in real estate taxation.
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15 February 2025 | 3 replies
How to Structure the Deal to Protect Your $20KIf you’re willing to cover the $20K arrears, here’s how to protect yourself:Option 1: Secure Your Funds with a Lien or Escrow AgreementUse an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.Option 2: Sub-To + Wrap While You AssumeSubject-to deal: Take over the existing loan payments before assumption approval, securing control.Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.Option 3: Negotiate a Seller Financing HybridAsk the seller to carry a small second note for the $60K equity gap at favorable terms.Use your $20K as a down payment, structured as a secured loan against the property.3.
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17 February 2025 | 92 replies
A lot of SubTo transactions don't take these considerations into account when filling out their future loan applications.
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20 February 2025 | 6 replies
. - any cost accounted for prior to permit) should be considered as equity in the deal once ready to build.
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4 February 2025 | 1 reply
I also ask if they've ever been evicted, refused to pay rent, or filed for bankruptcy.Further, I ask account numbers for their checking and savings accounts, and the approximate balances in each.