SSSnail
Lifer
- Nov 29, 2006
- 17,458
- 82
- 86
Quit giving this thread thumps up. Put this in the vault for pwnage of the year.
http://forums.anandtech.com/me...=2101005&enterthread=y
http://forums.anandtech.com/me...=2101005&enterthread=y
Originally posted by: Mark
so my grandfather passed away a few days ago and left me three 28 unit apartment complexs. 2 in beverly hills and one in century city. he owned seven all together and somehow managed all of them by himself. all of them were paid for in full just recently. i have to meet with his lawyer on thursday to discuss it. what the hell should i do here? i know nothing about running apartments. im just 25 and work a 9-5 job like most people. any landlords here with some advice?
thanks
Originally posted by: Tango
Originally posted by: Mark
so my grandfather passed away a few days ago and left me three 28 unit apartment complexs. 2 in beverly hills and one in century city. he owned seven all together and somehow managed all of them by himself. all of them were paid for in full just recently. i have to meet with his lawyer on thursday to discuss it. what the hell should i do here? i know nothing about running apartments. im just 25 and work a 9-5 job like most people. any landlords here with some advice?
thanks
Sorry for your loss. Actually I can relate to your situation and might help if you have questions. Don't do anything too fast and only listen to a lawyer you can blindly trust (i.e. family lawyer for a long time).
If you have questions pm me, you shouldn't be discussing this kind of things on public fora.
Originally posted by: Tango
Originally posted by: Mark
so my grandfather passed away a few days ago and left me three 28 unit apartment complexs. 2 in beverly hills and one in century city. he owned seven all together and somehow managed all of them by himself. all of them were paid for in full just recently. i have to meet with his lawyer on thursday to discuss it. what the hell should i do here? i know nothing about running apartments. im just 25 and work a 9-5 job like most people. any landlords here with some advice?
thanks
Sorry for your loss. Actually I can relate to your situation and might help if you have questions. Don't do anything too fast and only listen to a lawyer you can blindly trust (i.e. family lawyer for a long time).
If you have questions pm me, you shouldn't be discussing this kind of things on public fora.
Originally posted by: Finality
Do not sell and to not leverage until you know what your doing.
I'm assuming there are some tax implications, hire a lawyer and a financial adviser from a BIG NAME firm not joe shmoe around the corner. You are pretty much setup for life just don't squander it. Property management is a great business and its very easy to run once you have the right experience under your belt. You just sit back and wait for the money to come to you.
Ideally you just need one property manager to split his time between your 3 units. Follow your grandfathers lead there is a reason he was able to build it up so well.
Some people will get very very tempted to leverage up the properties and go on a shopping spree for more properties, its not so easy and I wouldn't do it without a financial adviser to guide you along the process. There is more to property management than just the rent income, you also have state taxes as well as income taxes to comply with.
I own some properties where the yearly outgoings are about 80% of the rental income because of the way the fees where setup for the building owner (all the owners are currently in a legal suit against him).
Always have a cushion as well once you decide to leverage up some more. Assume at any one time any one of your 3 buildings are empty and you still have to pay back whatever loans you have.
Originally posted by: zinfamous
Originally posted by: Sphexi
Originally posted by: nweaver
Originally posted by: DBL
My condolences.
Has anybody considered the tax implications of this? The OP, if he wants to hold on to this, just inherited millions of $. I'm guessing he would be on the hook for a pretty substantial tax bill unless his GF prepared for this well. Sounds like he knew what he was doing though.
I thought about this, but even if he owes taxes on it, he can EASILY mortgage just one of the building to pay the taxes, and have it payed off in less then 10 years.
Pretty much. The lawyer will let him know how much the taxes are probably going to be, then it'll be up to OP to find an accountant/tax specialist, and decide if it's cheaper to mortgage one of the properties and pay the taxes, and use the rest of the cash for potential expenses/repairs that'll have to be done this year...or to take out a loan for the same reasons, just a smaller amount than the full mortgage. No matter what this is going to take a couple of weeks to figure out fully, between the lawyer, an accountant, a property management company, and the OP. Still, it's a once in a lifetime opportunity, pass it up and you'll never have another chance like this.
BTW, has anyone even thought of what kind of high end clients are going to be paying 4500+ a month for an apartment in this part of town? We're talking aspiring actresses and models here, who haven't quite yet made it yet, so they'll be desperate for attention from any guy that seems to have money, like the owner of their building![]()
It's good to be the king...![]()
Originally posted by: mugs
Who the hell pluralizes forum as "fora"?![]()
Originally posted by: TehMac
to you grandpa.![]()
But fuck dude, he just set you up for life. Don't sell, you could make a lot milking the shit out of that. Fuck, especially from Beverly Hills.
Originally posted by: theprodigalrebel
Originally posted by: mugs
Who the hell pluralizes forum as "fora"?![]()
YA RLY WTF?
Originally posted by: mb
Originally posted by: TehMac
to you grandpa.![]()
But fuck dude, he just set you up for life. Don't sell, you could make a lot milking the shit out of that. Fuck, especially from Beverly Hills.
quoted for not checking the dates of the OP
Originally posted by: Alone
$2500-4500/m? Oh dear lord.
Originally posted by: Perknose
Originally posted by: Alone
$2500-4500/m? Oh dear lord.
OP, I mean Mark. May I call you Mark? It feels right.
It's at times like these that you need the counsel and heartfelt support of a good friend.
I'm willing to be yours.
In all seriousness, I've no doubt you'll get all the professional advice that you will need. Your grandfather was OBVIOUSLY no dummy, and will have set all this up in advance. In fact, I'd bet you know this already, and mainly wanted to brag without seeming to.
Funny thing is, I've got a long time friend in LA in a similar situation. His grand-mom is still alive, but has already gifted him a commercial rental property. Life is good in the land of the sun, no?
Plus, I wasn't aware of any 28 unit apartment buildings in Beverly Hills proper, but it's been 30 years since I lived in LA.
Originally posted by: xSkyDrAx
quit your 9-5 and start managing those apartments stat!
Originally posted by: rh71
Originally posted by: xSkyDrAx
quit your 9-5 and start managing those apartments stat!
easily my first thought. I would so quit a 9-5 job to do something like this.
Then reality will set in and my next question is - can I hire a mgmt company just for a year and take over after the dust settles and things fall into place?
