transactionsengineer

Neil, I am quite familiar with the advertising prohibitions of the act. Where on Doug's site do you see an unlawful claim? Doug has clearly mentioned that it is an agent who has made this claim against him. Daniel

Dave T, Let me make my position as simple as I can. We are discussing Steve's LLC, Notice of Tax Assessment, and Business Personal Taxes. The LLC is governed under the Illinois Limited Liability Company Act. This is a federal act under the jurisdiction of the US Tax Court. Since we are discussing a furniture and equipment tax value of $17,500. In the short term, you are correct. It is a municipal matter. In the long run, it is a US Tax Court matter. There is a plethora of case law held before the US Tax Court on furniture and equipment expenditures and the LLC. In my opinion, the ultimate authority is the US Tax Court on this matter. Steve should follow the advice of Dave T since he is the resident Tax Man. I am just cautious and have seen how bad things can get when it reaches the US Tax Court. I like preparing for the event that it reaches that far. There was a fraud case on furniture and equipment expenditures on the US Tax Court exam where the petitioner was sentenced to 30 years in prison. This is not meant to scare anyone but to show that the US Tax Court does have jurisdiction in these matters. I don't want to continue to debate this. I expressed my opinion. This was not meant to provide you legal advice. For legal advice, please contact a competent legal professional in your area. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

Guys, I've been celebrating this until now. While many on September 11 mourn the loss of a loved one, I went and closed on another Sub-2. A woman has filed for a divorce from her husband and does not want the matrimonial home. The husband gave a quit claim deed and is not a part of the deal. I went with a land trust document and all the necessary forms for a sub-2. The closing lasted for under an hour. Fortunately Commerce Bank is open on Sunday and was available to notarize all the signatures. This morning at 10 AM my documents will be filed at the courthouse and I will control this 3 bedroom, 1 bath starter home appraised for $375K. This has been a truly profitable day. No, I did not evict any little old ladies. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

To a TB? Ok, you can have a copy of my company policy. I'll get it for you right after I call back these other 10 TB's who are interested in buying this home. If none of them want it, and you're happy with my company policy, then you can have the home, or, if you'd prefer, we can forget the policy for now, and do what needs to be done to get you in the home. I'll let you think about it as I get out my notebook with the other TB's phone numbers in it. Jeff <{POST_SNAPBACK}> That is assuming that you have others interested in the home.

In this forum I see many advertisements but the reality is every successful mortgage company has 100% investor financing programs from A credit to non-prime. If you can't qualify for non-prime, hard money lenders exist for both residential and commercial. If you just want 100% financing, it is available almost everywhere. Option One, an H&R Bloch Company (you know, the tax return processing company) has its own mortgage company that investors can qualify for financing. Eventually your credit will not allow you to get properties because some financial organization will tell you that your credit and resources make you a credit risk. You cannot get any more financing for a real estate deal. Who need this when it is so much more fun to get properties without using credit, banks, etc.? Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

Jeff, It is a moot point. There is no right and wrong way. But I love playing devil's advocate so what would you say to a TB when they ask you to show them the company policy? Afterall company policy has to exist somewhere and if you have a company policy, you have identified the existence of a corporate entity. Corporate law requires that your organization provide full disclosure on policy issues. "SHOW ME THE POLICY" Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

John Locke is a friend of mine. He might even tell you that we got to know each other through an argument. I have the utmost respect for him. John is the type of guy you want on your side in a fight. I've asked him to assist me in marketing my Real Estate Investor's Guide to Pro Se Litigation Program. He will be missed on the seminar circuit. He told me that today, Sept 10, 2005, he will discontinue selling his products on the subject-to buying method because he makes more doing deals. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

Kimberly, US Copyright Protection is stated in the Berne Union for the Protection of Literary and Artistic Property (Berne Convention). Minor editing does not change the copyright placed by the creator of the document. To be allowed to remove a copyright can be done in several ways but I will only mention two here: 1. Get the permission from the creator of the document to remove the copyright. Michael C has already said no to removing the © copyright on his document. 2. Make a major modification to the document. This is why you see some documents that have something like this ie © 2003, 2004 Mary Doe. A major modification was made and in this instant case, 2004 was another registration to copyright the modified document. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

I have to differ with the opinion of DaveT on the jurisdiction of the US Tax Court. I must reiterate that you are better off with an Enrolled Agent (EA) or US Tax Court bar admitted attorney than any state admitted accountant or attorney. To back up my statement I quote from the US Tax Court: "Tax Court has exclusive jurisdiction to hear tax appeals under state laws, including personal income tax, property tax, corporate excise tax, timber tax, local budget law and property tax limitations. The Court has two divisions: the Magistrate Division and the Regular Division. With a few exceptions, appeals to the Tax Court are first filed in and heard by the Magistrate Division. The decision of the Magistrate can be appealed to the Regular Division, unless it is filed as a Small Claims matter, in which case no appeal is allowed". In addition, from the Tax Court of New Jersey website: The Tax Court is a court of limited jurisdiction. Tax Court Judges hear appeals of tax decisions made by County Boards of Taxation. They also hear appeals on decisions made by the Director of the Division of Taxation on such matters as state income, sales and business taxes, and homestead rebates. Appeals from Tax Court decisions are heard in the Appellate Division of Superior Court. Tax Court judges are appointed by the Governor for initial terms of seven years, and upon reappointment are granted tenure until they reach the mandatory retirement age of 70. There are 12 Tax Court Judgeships. The Tax Court handles approximately 15,000 cases per year. The objectives of the Tax Court are: 1. To provide expeditious, convenient, equitable and effective judicial review of state and local tax assessments. 2. To create a consistent, uniform body of tax law for the guidance of taxpayers and tax administrators, in order to promote predictability in tax law and its application. 3. To make decisions of the court readily available to taxpayers, tax administrators and tax professionals. 4. To promote the development of a qualified and informed state and local tax bar. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

I don't see why it is so odd that someone would ask to see the lease or have it reviewed by a member of the legal profession before signing it. All my contracts suggest that the opposition seek legal representation, if they so desire. If you are unwilling to relinquish a copy of your lease for attorney review, your customer can view you as shady or is hiding something illegal on the contract. You should encourage anyone that does business with you to seek a competent legal professional before signing any agreement. Without this statement on your contract, a court justice can set your contract aside as unconscionable or deem it void ab initio. The justice can also award damages (money) to the other party. It is your choice. Good luck with your investing. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

I assume that you are being investigated for violations of the Real Estate and Business Brokers Act - R.S.O. 1990, CHAPTER R.4 by practising without a license. You can defend against this simply by using the Act to define what a broker is. According to the Act, a “broker” means a person who, for another or others, for compensation, gain or reward or hope or promise thereof, either alone or through one or more officials or salespersons, trades in real estate, or a person who holds himself, herself or itself out as such; (“courtier”) The key words that make you different are: "For Another or Others". You are seeking profit for yourself. The real estate broker has a trusted agency relationship with the seller or buyer of real estate. You have an adversarial relationship because you negotiate to buy and sell to benefit you. Your position is adversarial. This is not a defense for just Ontario. Any English Commonwealth Country, including the United States, define a broker in a similar fashion. New Jersey Here is the rules for New Jersey and my response to a realtor who accused me of performing real estate functions without a license: N.J. Stat. § 45:15-1 (2005) § 45:15-1. License required No person shall engage either directly or indirectly in the business of a real estate broker, broker-salesperson or salesperson, temporarily or otherwise, and no person shall advertise or represent himself as being authorized to act as a real estate broker, broker-salesperson or salesperson, or to engage in any of the activities described in R.S. 45:15-3, without being licensed so to do as hereinafter provided. N.J. Stat. § 45:15-3 (2005) § 45:15-3. Terms defined, license required for bringing action for compensation A real estate broker, for the purposes of this article, is defined to be a person, firm or corporation who, for a fee, commission or other valuable consideration, or by reason of a promise or reasonable expectation thereof, lists for sale, sells, exchanges, buys or rents, or offers or attempts to negotiate a sale, exchange, purchase or rental of real estate or an interest therein, or collects or offers or attempts to collect rent for the use of real estate or solicits for prospective purchasers or assists or directs in the procuring of prospects or the negotiation or closing of any transaction which does or is contemplated to result in the sale, exchange, leasing, renting or auctioning of any real estate or negotiates, or offers or attempts or agrees to negotiate a loan secured or to be secured by mortgage or other encumbrance upon or transfer of any real estate for others, or any person who, for pecuniary gain or expectation of pecuniary gain conducts a public or private competitive sale of lands or any interest in lands. In the sale of lots pursuant to the provisions of this article, the term "real estate broker" shall also include any person, partnership, association or corporation employed by or on behalf of the owner or owners of lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise, to sell such real estate, or any parts thereof, in lots or other parcels, and who shall sell or exchange, or offer or attempt or agree to negotiate the sale or exchange, of any such lot or parcel of real estate. A real estate salesperson, for the purposes of this article, is defined to be any person who, for compensation, valuable consideration or commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed by and operates under the supervision of a licensed real estate broker to sell or offer to sell, buy or offer to buy or negotiate the purchase, sale or exchange of real estate, or offers or attempts to negotiate a loan secured or to be secured by a mortgage or other encumbrance upon or transfer of real estate, or to lease or rent, or offer to lease or rent any real estate for others, or to collect rents for the use of real estate, or to solicit for prospective purchasers or lessees of real estate, or who is employed by a licensed real estate broker to sell or offer to sell lots or other parcels of real estate, at a stated salary, or upon a commission, or upon a salary and commission, or otherwise to sell real estate, or any parts thereof, in lots or other parcels. A real estate broker-salesperson, for the purposes of this amendatory and supplementary act, is defined to be any person who is qualified to be licensed as a real estate broker but who, for compensation, valuable consideration or commission, or other thing of value, or by reason of a promise or reasonable expectation thereof, is employed by and operates under the supervision of a licensed real estate broker to perform the functions of a real estate salesperson as defined herein. No person, firm, partnership, association or corporation shall bring or maintain any action in the courts of this State for the collection of compensation for the performance of any of the acts mentioned in this article without alleging and proving that he was a duly licensed real estate broker at the time the alleged cause of action arose. No person claiming to be entitled to compensation as a salesperson or broker-salesperson for the performance of any of the acts mentioned in chapter 15 of Title 45 of the Revised Statutes shall bring or maintain any action in the courts of this State for the collection of compensation against any person, firm, partnership or corporation other than the licensed broker with whom the salesperson or broker-salesperson was employed at the time the alleged cause of action arose and no action shall be brought or maintained without the claimant alleging and proving that he was a duly licensed real estate salesperson or broker-salesperson at the time the alleged cause of action arose. My Response - On a first read through, it seems to say that no one can buy or sell, lease, rent etc without being classified as a Real Estate Broker/agent. But if this were the case, then no person could rent, (much less buy or sell their own home) without having a license. It would also keep investors from buying a home with the intent of resale for a profit or to rent. So there must be something in all these statutes which exempt people from having to have a license. It is usually found in just 2 simple words hidden somewhere in the definition of a real estate broker. Here they are... "for others". Remove those two words from any of these statute definitions of a realtor and automatically everyone even thinking about buy or selling or rent a home would need a license. The words "for others" create an "agency" relationship between two parties. If you do something "for another's benefit" or in their best interest, you have formed this agency relationship. These words imply that the agent will do "what is in the best interest" of the party they are being employed (or paid) by. Since there is a legal responsibility to do what is in the best interest for another, then the State is allowed to oversee that action so as to prevent the person put into this "trusted" position to be capable of completing the transaction to a certain state standard and to be fair and work in the best interest of the paying party. However, as an investor, I am not working "FOR ANOTHER"; I am certainly not in an "AGENCY" relationship. I am working "MY OWN" best interest and I am trying to negotiate the best deal for me, not the seller/buyer. I am in what is called an "ADVISARIAL" relationship. There is no licensed required since I am not working on behalf, or representation of ... another. Read the statue again and find those two magic words that allow private investing without having a license. Daniel Ng, JD/LL.B (Honours) The Transactions Engineer

The home is in Free Acres. Free Acres is split into two towns. The two towns are in separate counties. The home is located in Watchung, NJ but the address is listed as Berkeley Heights, NJ. Watchung, NJ is in Somerset County and Berkeley Heights is in Union County. The good part of this association set up is low property taxes and the idea of a self sustaining government. The bad part is more regulations to follow. It is not considered discrimination for a town to vote and tell a perspective buyer that they do not fit into the social standing, financial standing, or class of people within this community. I've already decided to stay away from this as an investment. It does resemble the 1998 film, Pleasantville starring Toby Magire or the 2004 film, M. Night Shyamalan's The Village.

I have a situation. I have a home owner who wishes to get out of her situation and is willing to discuss any issues to getting rid of her property. The problem is the town that she lives in. The town does not allow any creative real estate deals and must approve the buyer to be allowed into the town. No flips, no rehab and sell, etc. The purchaser must also be interviewed by the town council to be a qualified buyer. The land is leased for 99 years to the homeowner by an encumberance allowed by the US Constitution. The website for the town is Free Acres Anyone have any ideas?

For anyone who is interested in NC and Subject To Investing: I spoke to Mr. John "Cash" Locke about this problem since he has spoken with Mr. Brodgen of the NC Real Estate Commission. He has many articles on various websites about Sub2 investments. NC Real Estate Commission Answers on Sub-2 There is no real estate license required for Sub-2 deals. The article applies to me since I use land trusts in my sub-2 deals. If anyone speaks to "Cash", tell him Daniel said hello. Nevermind, I'll just call him myself.

I use an FSBO website. I go on Sunday afternoon and knock on the doors to speak with the owner or find out from the tenant who the owner is. People are so friendly on Sundays. Maybe it could be that they had a good day at church that morning! I haven't done any lease purchases. I take properties Sub-2 and through simultaneous closings. FSBO sites seem to work at a small percentage but all I need is one a month. Daniel

Ever thought about scheduling an open house so you can show it just once a week. This way you wouldn't inconvenience the tenant within the unit. Dan

The 700 Score and in some cases 680 score are legit programs. I have participated in them and have a few contacts that have worked closely on other types of investments. I am in NJ and the company I worked with is located in TX. It is good to be cautious. The rewards were worth the wait. I can only suggest that you investigate it to see if it is for you. Dan

Steve, Contact the Tax Assessor's office. Ask for a re-evaluation and a break down of how they arrived at your assessment. Do not file that tax listing form. They may be fishing for information on your LLC because you have an entity that exists but does not have a tax ID and does not report financials. If you find that a serious problem exists, contact an enrolled agent (EA) to handle the situation. Enrolled Agents (EA) can help you better than an accountant or attorney can because most EAs are former tax agents who know the people at tax court. Note: If your accountant or attorney is not an EA or admitted to the bar of the US Tax Court, they cannot represent you before any tax court efficiently. It took me one year to prepare for the US Tax Court bar exam. Please let me know how your situation turns out. Daniel Transactions Engineer

Here is my experience with Simultaneous Closings: I currently create simultaneous closing situations between buyers and sellers. When I make a purchase, I offer all cash at the close just to get a discount on the price. I then resell at the asking price but with a twist. I have a few mortgage companies that I work through to arrange financing for perspective buyers. This allows me to offer owner financing options to buyers. Some good mortgage lenders are: First Franklin Financial Corporation, Option One, Argent Mortgage With the mortgage company in place, this is what seals the deals: The Seller will get cash at closing, one of the interested Buyers will get some sort of financing (usually a 100% loan) from a lender. I get the difference between the Seller contract and the Buyer contract. If I cannot find a Buyer for a property that I have contracted, I default on the contract but my contract states that money (ie Earnest Money) is payable at closing. Since no closing takes place, all the seller lost is time and I am at no risk. Just don't make a habit of doing this. Someone might ask how do you find a good mortgage broker. The way I found mine is I called a lender that has sales people in all 50 states. I ask for the sales representative in my area. I call this sales representative and ask that he recommend me to a broker who has given him the best business in the last 6 months. I will call and use that specific broker. If you want a good attorney, call a title company and get a recommendation for someone that the title company has worked well and would recommend. For a good accountant, ask the mortgage broker for a recommendation. I hope someone finds this helpful.