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20 January 2025 | 3 replies
A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.
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27 January 2025 | 7 replies
Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option.
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23 January 2025 | 23 replies
Eliminate debt, establish a budget, and save.
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29 January 2025 | 2 replies
the additional of richenbacker airport, and the Ohio river really make the freight and logistics passing through a major economic driver, but its far from the only one.
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31 January 2025 | 6 replies
Do not be afraid to Collateralize yourself with additional deposits to fill a vacancy.
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16 January 2025 | 2 replies
I calculate the returns on the entire investment, since your debt applies to the entire investment.
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2 February 2025 | 10 replies
In addition I heard that is better having one LLC for each property and one for management only.
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19 January 2025 | 147 replies
When we were looking at our offering which our investors are preferred equity and shareholders, we looked at debt obligations and if we would need to register for an exemption etc.
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5 February 2025 | 4 replies
I intend on sending the tenant a bill for the exact repair cost as "additional rent" (per the lease) instead of evicting in the winter and deducting from the security deposit.
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26 January 2025 | 2 replies
Additionally, the contract with the wholesaler is set to expire on Monday the 27th.