Search found 3884 matches

by Carefreeap
Wed Mar 27, 2024 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Father Has Passed; Do we need an Appraisal?
Replies: 25
Views: 2673

Re: Father Has Passed; Do we need an Appraisal?

OP, The title of the property should already be in the name of the Trust if the Trust was drafted properly. Please double check. One of the biggest pains dealing with my mom's estate was while her little rental property was listed as an asset in her Trust schedule A she failed to transfer title and record the deed with the county recorder. That delay tooks six months through the "express action" Heggstad petition. This was in 2008 so of course the property dropped about 10% of value during this time.

If the house is unusual as you say you will want to get an appraisal. And it's likely going to be a lot more than $600.
by Carefreeap
Mon Mar 25, 2024 9:41 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1980

Re: Off-market home purchase - best practices?

Have your lawyer negotiate the contract with the seller or the seller's lawyer. The contract could require the seller to deliver the property free of occupants. The owner has a very low capacity to handle life, let alone working through this sale. She will also certainly not have an attorney. I want to make the process as easy as possible for her, to get it done quickly and not scare her off. This is why I don't want to approach her with a lawyer and a 20-page sales contract. I think a very simple 1-page contract would be ideal and I could get a lawyer to review it. And yes, require the property to be vacant! I understand. And you need to be prepared that she doesn't have the capacity to get rid of the tenants. Frankly if she had the abili...
by Carefreeap
Sun Mar 24, 2024 11:22 am
Forum: Personal Finance (Not Investing)
Topic: Off-market home purchase - best practices?
Replies: 33
Views: 1980

Re: Off-market home purchase - best practices?

This is a challenging legal question, you need to consult with an experienced local attorney who works with a lot of landlords including eviction work. Everything is local. This. You need an experienced real estate atty (and it may take two) to negotiate the contract and to go through the eviction process. Expect this process to take months especially if one of the relatives is still living there. This is going to be a giant PITA but I would do it too. We had a similar problem with a drug house in the neighborhood and it can take years to resolve if left on its own. Plus the situation is bound to escalate. We actually had a SWAT experience in the middle of the night because some idiot friend of the occupant kidnapped his girlfriend so you ...
by Carefreeap
Sat Mar 23, 2024 10:50 pm
Forum: Personal Finance (Not Investing)
Topic: Investment property in different city i.e. remote investment property
Replies: 10
Views: 575

Re: Investment property in different city i.e. remote investment property

You are not going to find many Bogleheads who view real estate as an investment--let alone real estate from which you live some distance. Thank you. I understand that BH is not into RE. Are there good forums who might be more RE inclined where I can seek advise? I think you've already answered your own question. You really don't want to do this. Several Bogelheads would ask you if you would buy this property today. Most SFH rarely pencil out. I've done (and still have one left) some long distance landlording. At the most extreme I was managing 5 properties from 6,000 miles away. It's not for everyone and our plans at the time were to move/use them ourselves at some point. Plus four of the properties were in CA with prop 13 property protect...
by Carefreeap
Sat Mar 23, 2024 6:56 pm
Forum: Personal Consumer Issues
Topic: Unwanted Real Estate - can I transfer it to a Trust?
Replies: 8
Views: 1124

Re: Unwanted Real Estate - can I transfer it to a Trust?

Talking to a real estate atty is a good start. I suppose you could sell it to an investor with a life estate retained for her. You won't get much but the value of most CA real estate is the land. A patient investor could wait until she passes/moves out and do a tear-down. You could stop paying the property taxes and let the County foreclose but as said upthread it's likely that will affect your credit rating. It takes about 5 years. How old is your mom? How did this situation happen? And of course, has there been any attempts of social workers to help with a mental health issue? Also, in my old job I worked with the local code enforcement. They can be surprisingly helpful even if the process is slow. Good luck with your difficult situation.
by Carefreeap
Sat Mar 23, 2024 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: Investment property in different city i.e. remote investment property
Replies: 10
Views: 575

Re: Investment property in different city i.e. remote investment property

You are not going to find many Bogleheads who view real estate as an investment--let alone real estate from which you live some distance. Thank you. I understand that BH is not into RE. Are there good forums who might be more RE inclined where I can seek advise? I think you've already answered your own question. You really don't want to do this. Several Bogelheads would ask you if you would buy this property today. Most SFH rarely pencil out. I've done (and still have one left) some long distance landlording. At the most extreme I was managing 5 properties from 6,000 miles away. It's not for everyone and our plans at the time were to move/use them ourselves at some point. Plus four of the properties were in CA with prop 13 property protect...
by Carefreeap
Sat Mar 23, 2024 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521156

Re: Tales from this insane real estate market [Home sales]

I hear you. We’ve been in the RE market for about two weeks now. Very low inventory, decent places go into “pending” in about two weeks. The less than desirable places sit longer, but still go into “pending.” Sale prices at asking price. We’re looking out further east, into Contra Costa and Alameda counties. More inventory in these places, and generally, a little more “house for the price.” Bay Area (Silicon Valley) here. We’re looking to downsize from our current home since I retired last month. Local inventory for “moderate” priced homes are being scooped up (one or two weeks on the market before they go pending.) Even with these high interest rates, the houses are moving. We will look further out in the East Bay area where there is more...
by Carefreeap
Sat Mar 23, 2024 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521156

Re: Tales from this insane real estate market [Home sales]

What do you think of Financial Samurai's advice by going above the median home price (150% or more) in searching and buying a home? By doing so, you avoid the home buying frenzy that we see too often in this thread. He says that you also get the more bang for your buck on a per square foot basis. To Gain More Value, Buy A More Expensive Home My take; I'm not sure if this will work for me; I'm looking for a starter home, which is where the buying frenzy lies. Homes that exceed the median value (150% or more) usually are bigger homes with higher end finishes, lot size, etc. I may also have to pay out more in maintenance and taxes. It's going to depend on what you value. My appraisal friends tended to buy homes on busy streets because the cos...
by Carefreeap
Sat Mar 23, 2024 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521156

Re: Tales from this insane real estate market [Home sales]

Bay Area (Silicon Valley) here. We’re looking to downsize from our current home since I retired last month. Local inventory for “moderate” priced homes are being scooped up (one or two weeks on the market before they go pending.) Even with these high interest rates, the houses are moving. We will look further out in the East Bay area where there is more inventory. Yeah, it's kind of a weird place to be. Move-in starter or more "elder friendly" home in my area would be between $1.2-$1.4M. Quick and dirty math of selling my approximately $2M house (Assuming $500k basis, $100k sales cost, $500k exclusion and approximately 25% tax (state and fed) on the $900k profit of $225k leaves me with $1.675M net to buy a house. Besides the cost...
by Carefreeap
Thu Mar 21, 2024 11:06 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4993

Re: Long-Term Care/Protecting Assests

Not for Medicaid purposes but for ease of settling an estate and keeping the assets private. Probate in CA is long and expensive. I only got a small taste of it when settling my mother's estate. Six months and $2500 because she failed to title a little rental property into her Trust. That was 16 years ago and I heard things got even worse after Covid. I can't imagine what it would have been like with a full blown probate process. I think I probably would have let her home be foreclosed on. (It was complicated.) According to poster Bruce Steiner most other states are not that difficult. Thanks ! We have not done any estate planning yet. It may be time we start. I can't imagine letting a home in CA go to foreclosure unless the loan was upsid...
by Carefreeap
Thu Mar 21, 2024 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4993

Re: Long-Term Care/Protecting Assests

Not if the proportion of individual ownership is the same as the Trust. It's the next phase, when the last trustor dies that the property could be reassessed. I think we will see some test cases in the near future. I see. But it seems that as of 1/1/2024, CA Medicaid no longer has an asset limit, so this may make a trust unnecessary ? Not for Medicaid purposes but for ease of settling an estate and keeping the assets private. Probate in CA is long and expensive. I only got a small taste of it when settling my mother's estate. Six months and $2500 because she failed to title a little rental property into her Trust. That was 16 years ago and I heard things got even worse after Covid. I can't imagine what it would have been like with a full b...
by Carefreeap
Thu Mar 21, 2024 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4993

Re: Long-Term Care/Protecting Assests

There's a fairly recent CA law that exempts assets placed in a Trust from a Medicaid claw-back. I just shake my head at how this arrangement is helpful to keeping the system sustainable. That said, my father did it and I benefited from not having to support him from my own funds. I don't think it's right but it's the law. I believe placing a home in a trust is a transfer and would trigger Prop13 reassessment. This would increase property tax revenue for the state. And might explain how the state makes it work. No such luck for other assets, though. Not if the proportion of individual ownership is the same as the Trust. It's the next phase, when the last trustor dies that the property could be reassessed. I think we will see some test cases...
by Carefreeap
Wed Mar 20, 2024 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Heloc or mortgage for bridge loan
Replies: 2
Views: 311

Re: Heloc or mortgage for bridge loan

It may be that you need to do a combination of loans; part from Fidelity and part of a HELOC from Wells or some other banking outfit.

I wouldn't be too worked up about the interest rate if your intention is to pay off the loan in 3-4 months. A higher interest rate is probably cheaper than all the mortgage origination costs associated with a conventional loan. Do make sure you understand the terms of each of the loans. They may require a minimum hold time, say 6 months.
by Carefreeap
Wed Mar 20, 2024 5:58 pm
Forum: Personal Finance (Not Investing)
Topic: Best way to find a house as soon as it is listed (or before)
Replies: 8
Views: 929

Re: Best way to find a house as soon as it is listed (or before)

First, if you are getting a mortgage are you pre-approved by a mortgage lender? That should be your first step because no seller is going to want to accept an offer without that.

Second, research who are the top agents of the houses that have sold in your area? You can get on Realtor.com to get this information.

Finally if it were me, I'd go to a few "broker" open houses to meet the top agents and let them know what you're looking for. The broker open house is the mid week vs weekend open houses. Busy agents will have stuff in the pipeline. You want them to call you first! :D

Good luck on your purchase adventure!
by Carefreeap
Wed Mar 20, 2024 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4993

Re: Long-Term Care/Protecting Assests

My mistake. I may have been confused by what you wrote: Research Med wrote: If you are able to get some money into a trust or something 5 years in advance, go for it, as long as it's a legal way. by the way, I agree with this sentiment, as long as it's done in a legal way, I see no problem with it. Marcopolo wrote: Your position seems counter to this syatement Carefreeap wrote: There's a fairly recent CA law that exempts assets placed in a Trust from a Medicaid claw-back. I just shake my head at how this arrangement is helpful to keeping the system sustainable. That said, my father did it and I benefited from not having to support him from my own funds. I don't think it's right but it's the law. Edited to add my cut and paste job mixed up ...
by Carefreeap
Wed Mar 20, 2024 4:23 pm
Forum: Personal Consumer Issues
Topic: Bought a new Lexus - can't get a second key for 3-5 months???
Replies: 54
Views: 6165

Re: Bought a new Lexus - can't get a second key for 3-5 months???

Yep, DH has had his car for about a year and just got the second key fob. We had the "credit card" key for me. I rarely drive his car because he's so fussy.
by Carefreeap
Wed Mar 20, 2024 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Long-Term Care/Protecting Assests
Replies: 89
Views: 4993

Re: Long-Term Care/Protecting Assests

Long story short; I'm getting my first experience with a parent who is currently in a rehabilitation center and may require long-term care. Fortunately, her home, land, mineral rights, etc were transferred out of her name almost five years ago...not quite out of the look-back period yet. Thankfully, she has enough money to private-pay for her care until the look-back period has passed, then the only option appears to be exhausting what money she has until Medicare will take care of the remainder. This somewhat unfortunate circumstance has me thinking about my wife and I during our final years; in approximately 22-25 years, we'll be in the same situation as my Mom. The only difference will be, with my pension and what I can draw in SSI, we'...
by Carefreeap
Wed Mar 20, 2024 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Need settlement costs for calculating rental cost basis
Replies: 4
Views: 306

Re: Need settlement costs for calculating rental cost basis

Have you tried contacting the lawyer who handled the closing? I think everything was done by an relator who I think is now retired, but I know he was from ReMax Realtors don't settle properties. Depending on your state, settlements are done by a settlement atty or a title company. As you know 20 years is a long time and while it varies from state to state generally the law doesn't require record keeping beyond a certain date like 7 or 10 years. When your deed recorded it was likely prepared by the entity who did your settlement. If you don't already have it get a copy of your deed from your county recorder. You can try tracing back from there. If I were in your shoes I'd give that a try but if I couldn't find the actual settlement document...
by Carefreeap
Mon Mar 18, 2024 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: Lifelong renter looking to become first time (cash) homebuyer - do I need agent? Or only lawyer & inspector?
Replies: 23
Views: 2275

Re: Lifelong renter looking to become first time (cash) homebuyer - do I need agent? Or only lawyer & inspector?

As a first time homebuyer you should get an agent. The buying process is a complicated process and it's not like you can get a quick cash refund if you make a mistake. The quality of agents varies widely. Get referrals from friends and business associates whom you respect. Interview at least three. Don't work with a friend's part-time agent because they'll "save you money". In a hot market, especially, you want someone who is experienced and knows what they're doing. Try to narrow down your search to a few zip codes and see who the big companies are and whose got a higher % of listings. They will be the most savvy and have the best inventory including stuff that's going to hit the market. While you can do a lot of leg work on the ...
by Carefreeap
Mon Mar 18, 2024 10:44 am
Forum: Personal Finance (Not Investing)
Topic: Buying a Home: Am I Required to retain Escrow Services?
Replies: 15
Views: 1133

Re: Buying a Home: Am I Required to retain Escrow Services?

syngameon wrote: Mon Mar 18, 2024 10:33 am
cadreamer2015 wrote: Mon Mar 18, 2024 10:28 am It used to be that if your loan was above 80% of the value of the property,
Thanks. Multiple responses suggest that there is no fee for escrow services, which is hard to believe give that we live in a capitalist economy. Foregone interest is also a good point to consider. Our down payment is nearly 26%, so that works in our favor too.
There's no direct fee to you. But like all things it's gets wrapped up into the bigger cost of lending you money. Does that satisfy your capitalist thinking? :D
by Carefreeap
Mon Mar 18, 2024 10:35 am
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521156

Re: Tales from this insane real estate market [Home sales]

I’m currently involved in a housing market I really have. I business being it Wife’s grandma passed and her home is currently listed for just under $10 million. It’s a likely tear down as it’s so old and wildly out of date for its area and on a large lot that would allow for a larger house Unfortunately my wife’s mom died about 20 years ago and my mite’s less than intelligent (or moral) aunt is in charge of settling the estate and the home sale (which is the entire estate basically) House has been on the market for 5 months now. With very little action They had had one offer over $10 mil but it fell through Since then nothing Curious. What is the general metro area of the house? Size, age & acerage? Even in my inflated SF Bay Area mark...
by Carefreeap
Mon Mar 18, 2024 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Buying a Home: Am I Required to retain Escrow Services?
Replies: 15
Views: 1133

Re: Buying a Home: Am I Required to retain Escrow Services?

I'm assuming you are talking about the mortgage company's property tax and insurance service? If so, the cost is part of the mortgage company's service contract with their investor not you. Whether you can change an existing escrow arrangement will depend on your mortgage agreement and the bank's customs. Many mortgage companies give a small discount at the time of funding if you maintain an escrow account (which reduces the bank's risk of default if you fail to pay insurance or your property taxes). Personally I hate them because many years ago when they were required on FHA loans the banks never estimated the amounts correctly with shortages that had to be paid immediately. But some folks like them because they prefer to have even monthly...
by Carefreeap
Mon Mar 18, 2024 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Tales from this insane real estate market [Home sales]
Replies: 2923
Views: 521156

Re: Tales from this insane real estate market [Home sales]

I’m currently involved in a housing market I really have. I business being it Wife’s grandma passed and her home is currently listed for just under $10 million. It’s a likely tear down as it’s so old and wildly out of date for its area and on a large lot that would allow for a larger house Unfortunately my wife’s mom died about 20 years ago and my mite’s less than intelligent (or moral) aunt is in charge of settling the estate and the home sale (which is the entire estate basically) House has been on the market for 5 months now. With very little action They had had one offer over $10 mil but it fell through Since then nothing Curious. What is the general metro area of the house? Size, age & acerage? Even in my inflated SF Bay Area mark...
by Carefreeap
Sat Mar 16, 2024 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Older jobless sibling with a daughter and an inheritance - thoughts on managing it
Replies: 31
Views: 2869

Re: Older jobless sibling with a daughter and an inheritance - thoughts on managing it

just frank wrote: Sat Mar 16, 2024 3:49 pm Sorry for your loss and the situation.

Has OP considered the possibility that brother will sue OP for the house? On the grounds that parents told him he could have it when they passed, or some other nonsense? Even if there are no grounds, he might be assuming that siblings will concede it he makes a big enough stink, and plays the 'poor me and me daughter' game.

I have seen similar happen.
Yes, my sib tried to play games too. Depending on the $$$ it might not be worth the fight. It's also an opportunity to cut off purpetual moochers.
by Carefreeap
Sat Mar 16, 2024 3:50 pm
Forum: Personal Finance (Not Investing)
Topic: Older jobless sibling with a daughter and an inheritance - thoughts on managing it
Replies: 31
Views: 2869

Re: Older jobless sibling with a daughter and an inheritance - thoughts on managing it

What's the house worth and how much equity is in the house?

Are there any other assets?

Depending on the numbers one option would be for the sibling to buy the house using a reverse mortgage.
by Carefreeap
Fri Mar 15, 2024 5:46 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 62
Views: 5093

Re: Parents building a new house - how should they pay for it?

Everyone, especially the other siblings, owe the sibling in rural Indiana a serious debt of gratitude. I’m the sibling close to my parents and can attest first hand that it isn’t easy or effortless to be the sibling who is called on for everything. Im sure your parents won’t, but mine have a significant expectation that I can just jump in at every little hiccup. I’m equally sure you and your siblings won’t, but mine sit back and rest assure DW and I will handle everything since we are close by. Yep, I’m resentful. Yeah, this situation sucks. DH is an only child and trying to help his demanding mother 600 miles away was extremely difficult...only matched with how horrible the situation would have been had he (married 65 year-old man) lived ...
by Carefreeap
Fri Mar 15, 2024 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Parents building a new house - how should they pay for it?
Replies: 62
Views: 5093

Re: Parents building a new house - how should they pay for it?

Sowney wrote: Fri Mar 15, 2024 5:15 pm
toddthebod wrote: Fri Mar 15, 2024 8:13 am They should borrow money and pay it back when they sell their current house.
Thank you. Can you share your expectation of a mortgage underwriter's perspective on loaning 80-somethings a half million dollars on a 30-year term?
Age isn't an issue. They have documented income and will have a substantial down payment. Presumably they have good credit and the recommendation to get pre-qualified and pre approved is good.

Given their ages moving once is smart. Almost all new builds have delays for various reasons. Selling and doing a rent-back or selling and renting for a few months will wind up being super stressful with the delays. Never mind the cost of moving twice!
by Carefreeap
Fri Mar 15, 2024 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: LLC to protect personal asset
Replies: 2
Views: 462

Re: LLC to protect personal asset

chuckwalla wrote: Fri Mar 15, 2024 1:08 pm People set up LLC to protect personal asset from business liabilities.
Does it also work the other way around?
If one gets into a personal liability situation, is your asset in LLC protected?
The lawyers on this forum will chime in but from life experience I'd say it depends on how closely held the LLC is and what state you're in. As an example if you're trying to protect your house you hold in a LLC if you have a mortgage in your name or if you signed as a guarantor that's pretty easy to pierce the corporate veil. Most of us carry umbrella insurance policies if we have substantial personal assets rather than using a LLC.
by Carefreeap
Fri Mar 15, 2024 9:50 am
Forum: Personal Consumer Issues
Topic: Need Help Finding a Hobby
Replies: 76
Views: 6392

Re: Need Help Finding a Hobby

Thank you all for the wonderful suggestions. I think one of my biggest challenges is I don't really know what it is I enjoy doing :oops: It sounds crazy but how does one figure that out? I live in a 2-bedroom, 1200 sf condo so we don't have a ton of room. We also can't do any gardening outside - I think it would be really cool to grow my own veggies. I've thought about volunteering before but feel overwhelmed, don't even know where to start looking. When I first read your post my first thought was that the OP can't be a homeowner because there's never free time! :wink: You can do A LOT with container gardening if you have an outside balcony or patio including vertical gardens to grow tomatoes and other veggies. I volunteer with my city's O...
by Carefreeap
Thu Mar 14, 2024 5:39 pm
Forum: Personal Consumer Issues
Topic: Realtor representing two firms?
Replies: 7
Views: 927

Re: Realtor representing two firms?

Hi BH’s, We’re in the real estate market, looking to sell our current home and downsize into something smaller. We’re looking for referrals for a local realtor. A friend gave us a referral of a realtor from a well known local real estate firm. We contacted this realtor to setup an interview call. He sent us his business card via email and the card shows him representing another firm. The firm appears to be his own sole proprietorship real estate firm. We’re in California. Anybody here have any comments about this situation? Anything fishy? Is this a Smith and Smith Team that works for a big outfit like ReMax? If so, this situation is pretty common. They create their own brand and if the brokerage sells or goes out of business the "Tea...
by Carefreeap
Thu Mar 14, 2024 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]
Replies: 29
Views: 3512

Re: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]

General Disarray wrote: Thu Mar 14, 2024 10:32 am
smitcat wrote: Thu Mar 14, 2024 9:44 am "isn't the only outcome that medical services will be withheld from the adult parent?"
No - medicaid will come in.
Not if assisted living or memory care is needed.
It will depend on the state. My father was in CA and his was able to get custodial care. He was very lucky to have landed in a skilled nursing facility that had medicaid custodial care. That was also when he got diagnosed with dementia.
by Carefreeap
Thu Mar 14, 2024 1:09 pm
Forum: Personal Finance (Not Investing)
Topic: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]
Replies: 29
Views: 3512

Re: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]

barnaclebob wrote: Thu Mar 14, 2024 11:11 am
Lil' Chubbs wrote: Wed Mar 13, 2024 8:41 pm My younger, upper 30s brother also lives with my parents, and he hasn't worked in approximately 20 years. My parents fund his existence, as well. I assume any foreclosure/probate process would flush him out and compel him to work (he isn't handicapped, to my knowledge, just comfortable and lazy).
Sounds like the brother will take care of it, hes the one with a vested interest here. And if he doesn't, he'll get to figure out a new chapter of his life.
This! OP can formally disclaim any inheritance and let bro handle it.
by Carefreeap
Wed Mar 13, 2024 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]
Replies: 29
Views: 3512

Re: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]

Thank you to everyone for your thoughtful replies! I should have been more precise in my initial post. My parents do have equity in the home, and, if they were to sell it, I believe they would come out ahead and be able to pay off their mortgage and the HELOC. (For now, at least - I'm concerned about their continuing ability to pay both their mortgage and other monthly expenses.) Among the problems here, though, is that they refuse to sell their home and downsize . It sounds as though I'd bear no obligation to do anything, other than perhaps provide a written disclaimer to the probate court upon their passing. I assume that all of their belongings in the home would be handled through the probate court proceedings and I would have no obliga...
by Carefreeap
Wed Mar 13, 2024 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]
Replies: 29
Views: 3512

Re: Parents' Financial Situation/Crisis [Heir to estate with more debt than assets]

OP, Welcome to the forum! I was in a similar situation with each of my divorced parents. Mom's was probably the worst with her estate being upside down by approximately $400,000. Believe it or not, I was actually able to negotiate with her lenders, squeeze out about $20k each for my brother and me and later sold her condo several years later for about a $300k profit. In my dad's case I netted about $40k from his estate and I was convinced I would be on the hooked to support him in assisted living/nursing home care to the tune of $5k-10K/per month. Luckily, he qualified for Medicaid custodial care and after a third fall which broke bones again the skilled nursing facility found him a place. Then Covid shut everything down and he died about e...
by Carefreeap
Tue Mar 12, 2024 10:20 am
Forum: Personal Finance (Not Investing)
Topic: Weekend home vs trading up on the primary home
Replies: 15
Views: 1845

Re: Weekend home vs trading up on the primary home

- if we trade to even a similar home, our taxes probably double due to prop 13 keeping ours artificially low - So it would likely be 3x-4x more if we traded up... Isn't the Prop-13 freezing of property tax, portable within-California? Of all of the enumerated options, my favorite would be to "upgrade" to a house that isn't necessarily larger, but is in a nicer and quieter micro-location (maybe same zip code, but with less traffic, less road noise, no LAPD helicopters, etc.), with a larger and more private yard. That way, more of the value would be in the dirt, than in the actual house. This improves chances for appreciation, as the house ages. You need to be 55 or older to qualify for the portability. https://www.bing.com/search?...
by Carefreeap
Mon Mar 11, 2024 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Weekend home vs trading up on the primary home
Replies: 15
Views: 1845

Re: Weekend home vs trading up on the primary home

"Entering our 50s soon - won't we likely want to downsize in not too long rather than go bigger, with even more maintenance?" Yes - this is accurate. "Potential airbnb rental options with the second home" Are you looking for a 2nd job? "Weekend home allows a change of scenery on weekends instead of more of the same" Travel to many different places each weekend with hotels and BNB or buy an RV "I feel like the general wisdom of the forum is that people end up using second homes less than they think they will, and that they tend to be money pits or at least a lot harder to keep up than people think they will be." Excellent summary for the majority of folks. Excellent points and here are my comments; 1....
by Carefreeap
Mon Mar 11, 2024 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Tax questions on 2nd home property purchased
Replies: 2
Views: 341

Re: Tax questions on 2nd home property purchased

We do have some tax experts on the forum but they may be a little busy this time of year. :wink:

I'm not an expert but someone who has owned real estate including rental real estate for many years.

Do keep track of all of your expenses. As noted above you may be able to include the demo costs to your cost basis.

Check your property tax bill to review the cost of "improvements" if they are assessing a value to improvements you may be able to have those removed with the demo.

As to the rental process, as noted above the laws did change in about 2009 with respect to bifurcating the exclusion of cap gains. Talk to a CPA to ensure you understand how they may affect your situation.
by Carefreeap
Mon Mar 11, 2024 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: DH Got Rear-Ended Saturday. What to Expect from Insurance Process
Replies: 21
Views: 1600

Re: DH Got Rear-Ended Saturday. What to Expect from Insurance Process

Thanks for all the quick replies, they are helpful!

Just got off the phone with DH who heard back from State Farm. It sounds like car #1 insurance is disputing that that driver is at fault. Driver #1 is claiming that driver #2 hit DH and that driver #1 then hit driver #2. DH says he was hit once so this should be fun. :oops:

I will encourage DH to get a second opinion from either the Lexus dealer or a Lexus forum. And yes he's VERY picky himself.

A follow up question to those who talk about "diminished value". I understand the concept but how one define it and be compensated? I know that once the car has been reported to have been in an accident it can affect its resale value.

Thanks for the collective wisdom!
by Carefreeap
Mon Mar 11, 2024 10:36 am
Forum: Personal Finance (Not Investing)
Topic: DH Got Rear-Ended Saturday. What to Expect from Insurance Process
Replies: 21
Views: 1600

DH Got Rear-Ended Saturday. What to Expect from Insurance Process

Hello everyone, I appreciate the expert wisdom on this Board! DH got rear-ended Saturday afternoon in the Phoenix area. He's o.k. The car is registered in CA and we are with State Farm. First claim in 20+ years. Car is operable and he is driving home today but there is substantial damage to several panels. Car is a Lexus NX Hybrid and was purchased new about 1.5 years ago. Three cars were involved with car #1 crashing into car #2 and then DH car #3. Cars were stopped on the freeway due to a prior crash. :oops: Driver #1 was cited by State Trooper. DH reported accident to State Farm Saturday afternoon and started claim process with them. He was given instructions to use a State Farm authorized body shop near our house in the Bay Area. The pa...
by Carefreeap
Mon Mar 04, 2024 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Capital Gains and 1031ing into DST or another property
Replies: 8
Views: 610

Re: Real Estate Capital Gains and 1031ing into DST or another property

You need to talk to a CPA because the gain is going to be prorated over the ownership. The taxing authorities significantly closed this loophole about 15 years ago. [/quote] Was speaking with 1031 company that said very thing. Thanks! That leaves two scenarios': -1031 into DST 3.2 net @ 5.25% , 168k per year income, approx 50% dep. So real income on tax return half. Question to answer. Can we get 500k (boot) out and only pay 15% cap gain? Some risk and hassle with DST. -Pay cap gain net 2.6m , 6% in stock market . 156k per year. [/quote] We took a little boot when we did our 1031. Don't forget about state tax too. My state (CA) taxes as ordinary income. With that kind of boot you may also hit some other taxes. Also ask your CPA about wheth...
by Carefreeap
Mon Mar 04, 2024 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Real Estate Capital Gains and 1031ing into DST or another property
Replies: 8
Views: 610

Re: Real Estate Capital Gains and 1031ing into DST or another property

Danya wrote: Mon Mar 04, 2024 12:45 pm Scenario: 3.5m mixed use building. If sold and paid capital gain its a 600k+ hit.

I could DST net 3.2m 5.2% -5.7% return.

Or is this possible? 1031 3.2m into residential property. Rent out for 2 years. Then convert to our primary residence. It seems the 500k cap gain exclusion applies at some point and your on the hook for only 100k of the gain and whatever else its appreciated during that time.

My wife and I have no heirs and will need this as nest egg for life.

Anyone else have creative tax minimization strategies?

Thx!
You need to talk to a CPA because the gain is going to be prorated over the ownership. The taxing authorities significantly closed this loophole about 15 years ago.
by Carefreeap
Mon Mar 04, 2024 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Planning to sell my condo. Right decision ?
Replies: 18
Views: 1469

Re: Planning to sell my condo. Right decision ?

Are you still living in CA?
by Carefreeap
Mon Mar 04, 2024 10:30 am
Forum: Personal Consumer Issues
Topic: Moving to San Diego from Sleepy Low Cost Area
Replies: 77
Views: 8201

Re: Moving to San Diego from Sleepy Low Cost Area

I've gotten board where I live and am thinking about moving to San Diego. It looks like a fun, healthier lifestyle. Is this affordable at all? Any idea for how to navigate costs, and what annual income would be necessary to live a "middle class" lifestyle, would be appreciated. I am thinking of the Little italy area, assuming it can all work out. My daughter is making 227K a year and could not afford to buy a decent place in SD. 1.5M gets you a nice condo but a rundown house. I had an interesting talk with few of my CA coworkers. Folks with HHI in 450-700k range still can't afford a decent place. All are renting. Your friends must be very picky. You can buy a decent place for $2M even in the SF Bay Area. It won't be in a top tier...
by Carefreeap
Mon Mar 04, 2024 9:47 am
Forum: Personal Consumer Issues
Topic: Moving to San Diego from Sleepy Low Cost Area
Replies: 77
Views: 8201

Re: Moving to San Diego from Sleepy Low Cost Area

penumbra wrote: Sun Mar 03, 2024 11:09 pm
snackdog wrote: Sun Mar 03, 2024 9:52 pm I have always thought of San Diego as a sleepy seaside town. Not much industry. A bit of tourism here and there. A few sailors and some college professors hanging about.
You thought way, way wrong. Did you last visit in 1953? :)
Lol, I grew up there in the 60s and 70s. Even then it was starting to change.

Some local pockets are still pretty conservative but overall it's a lot more politically balanced than it used to be. We chose not to move back even though we had a couple of houses and could afford it. Something about not being able to go home again.

I wish the best for those who want to give it a try. It wasn't a bad place to grow up with plenty of canyons and beaches to explore.
by Carefreeap
Sat Mar 02, 2024 3:40 pm
Forum: Personal Finance (Not Investing)
Topic: Idea: Partial Home Ownership as Investment
Replies: 5
Views: 786

Re: Idea: Partial Home Ownership as Investment

In the 80s we called them equity shares.

They are complicated and risky and for most people make no sense. Far easier for a homeowner to control his own destiny by saving up some down payment money and getting a 30 year fixed rate mortgage and controlling your own destiny.

From an investor point of view there's no guarantee of even getting a return of the investment much less a return on investment. Even agreeing on a relatively short holding period of five years doesn't mean the house price will go up enough to even clear sales costs.
by Carefreeap
Fri Mar 01, 2024 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: What Is An Assignment of Rents Trust Deed?
Replies: 8
Views: 732

Re: What Is An Assignment of Rents Trust Deed?

Leesbro63 wrote: Fri Mar 01, 2024 10:18 am The article made it sound as if Richard Lewis had done some great thing for his wife. It’s still not clear to me how she’s better off with this than just as his “normal” spousal heir/survivor.
You're right. A typical "mortgage" in CA is secured by a Deed of Trust (with assignment of rents).
by Carefreeap
Thu Feb 29, 2024 8:36 am
Forum: Personal Finance (Not Investing)
Topic: Is there insurance that covers missed business rent for tenants??
Replies: 12
Views: 1302

Re: Is there insurance that covers missed business rent for tenants??

Hi everyone, I'm revisiting my affairs and have a question about what happens business rent after you die. I'm self-employed and rent an office that has a five-year lease. We are in year 3 with an option to renew for another 5. I've become concerned about how this could affect my wife should I become incapacitated or die. The last thing I want her to do is have to deal with some kind of lawsuit against my estate. I reviewed my lease and there is no mention of what would happen in this situation. I admit it's a low probability, high impact scenario, but my risk-tolerance for this sort of thing is quite low. Is there an insurance product that would cover rent upon the death of a tenant? Would it cover incapacitation? All I see is articles ab...
by Carefreeap
Tue Feb 27, 2024 9:30 am
Forum: Personal Finance (Not Investing)
Topic: Advice on Paying for Care of Elderly Uncle
Replies: 62
Views: 6637

Re: Advice on Paying for Care of Elderly Uncle

OP, At this stage you can pretty much count on a crisis happening where uncle makes a trip to the hospital after some kind of medical issue. It sounds cold hearted but when this happens you mom (and or your siblings) should refuse to take him home so he is forced into skilled nursing. His $200k will last for a while during which time disposal of the house should be arranged. Where is the sibling who is inheriting everything? This should be the person coordinating care. That sibling lives with my parents, is about 65 years old, and is a difficult person in his own right (very, very temperamental). He makes more trouble for my parents than provides help. For some reason, my uncle apparently favors him. In fact, it will be very difficult deal...