Buy from Retiring LL (by MMIT [VA]) Feb 23, 2018 10:12 AM|
Buy from Retiring LL (by LisaFL [FL]) Feb 23, 2018 10:45 AM
Buy from Retiring LL (by NE [PA]) Feb 23, 2018 11:28 AM
Buy from Retiring LL (by DJ [VA]) Feb 23, 2018 5:38 PM
Buy from Retiring LL (by Robert J [CA]) Feb 24, 2018 7:42 PM
Buy from Retiring LL (by Ray-N-Pa [PA]) Mar 1, 2018 7:04 PM
Buy from Retiring LL (by MMIT [VA]) Posted on: Feb 23, 2018 10:12 AM
I talked to an older landlord today who wants to retire. He is having health problems and realizes he needs to do something with the properties.
His family is not interested in keeping the properties. He does not want his family (wife and kids) to have to deal with the properties when he is gone.
He has 15 properties in C+ neighborhoods.
He has had these properties for 15-20 years.
His plan is to sell a couple properties a year thinking that will be a good way to minimize taxes.
What is the best way for him to sell his inventory to maximize his profit and minimize his taxes?
What is a good win-win situation for both the buyer and seller?
Buy from Retiring LL (by LisaFL [FL]) Posted on: Feb 23, 2018 10:45 AM
The best way to minimize taxes and maximize profit is for him to owner finance.
He can get a higher selling price, continued income, and taxes are spread out over the life of the loan. --173.170.xxx.xxx
Buy from Retiring LL (by NE [PA]) Posted on: Feb 23, 2018 11:28 AM
Be mindful that good investors dump their dogs first. He'll unload his crap and keep the geese that are laying the golden eggs.
If I were you, I would want to look at this entire portfolio and cherry pick the ones you want. --50.32.xxx.xxx
Buy from Retiring LL (by DJ [VA]) Posted on: Feb 23, 2018 5:38 PM
He could call me!! Seriously! What part of VA? He could get a little cash down & carry owner financing. (I assume good tenants convey?) That way he still gets continuing income without the headaches, and the new owner/investor gets terms that allows him/her to make a profit in exchange for doing the management.
Seriously, if anywhere in the southeastern area of the state, contact me through
Buy from Retiring LL (by Robert J [CA]) Posted on: Feb 24, 2018 7:42 PM
I was in a power house meeting with a retiring landlord had his advisers, they were all dump as a log! What they proposed is I buy an apartment building for all cash, then they would put the funds in a CD (certificate of deposit) and earn around 4% -- taxed!
So I said, it's not enough that you are saving a brokers commission, but you want to get every dime (top dollar) for the property, then pay Federal Capital Gains Tax of 15%, State Taxes of 13.3%, Recaptures on the Depreciation 25% and the O Care 3.8% -- then invest those left over funds at 4% taxed!
I HAVE A BETTER IDEA! Sell me the property and get a down payment of less than 29% (Like 20%) and make this an installment sale! Pay taxes on the down payment. And the rent of the money earn 7%.
Most of the monthly payments will be interest, so on the majority of the monthly payments (principal) you will be paying ordinary income tax, now that you're going to be retired and your income tax rate will be less, you will make out like a bandit with a 30 year income stream.....
So instead of earning 4% on $300,000 ($14,000 a year), you will earn 7% on $500,000 ($35,000) -- that's more than twice the income... This idea works almost all of the time....will sellers.... --47.156.xx.xx
Buy from Retiring LL (by Ray-N-Pa [PA]) Posted on: Mar 1, 2018 7:04 PM
I agree with Robert about the installment sale....however, I would think you would want to sell them in a trust or an LLC so the existing financing that is in place isn't called. --24.101.xxx.xxx