patrick.net

DeportLibtards says

@DeportLibtards

How did they intend to collect $60,000 a month? What program is that?

Patrick says

How did they intend to collect $60,000 a month? What program is that?

I presumed it was Walgreens being held to the terms of a long-term lease.

DeportLibtards says

The whole thing is $5.7M over 8 years. So depending on how multi the "multimillion" buyout was it could be smart desicion or it could be stupid. I would probably happily walk away at multi=3. And since 2 is not really commonly understood as "multi" they probably have been offered at least 3.

You can fit this many ghetto thieves into this baby.

Ceffer says

You can fit this many ghetto thieves into this baby.

Or you can have very negative cashflow paying taxes, insurance, maintenance, security and lawyer fees for God knows how many years....

HeadSet says

I presumed it was Walgreens being held to the terms of a long-term lease.

Yup.

"building owners"
I wish they would do a little investigative reporting and name the owners on stories like these.

Robert Sproul says

"building owners"
I wish they would do a little investigative reporting and name the owners on stories like these.

Why? This is normal commercial R/E stuff. Nothing shady.

Patrick says

The truth is that US citizens are self deporting from CA.

We do need to reduce tax writeoffs for vacancies.

"I have a solution for that: Lower the Rent until you find a renter."

"Noooo! I get more in a tax writeoff. Or, Nooo, my investment sucks and I might have to take a loss! How can this be happening to me! Not giving me big tax writeoffs for vacancy is Socialism"

AmericanKulak says

We do need to reduce tax writeoffs for vacancies.

"I have a solution for that: Lower the Rent until you find a renter."

"Noooo! I get more in a tax writeoff. Or, Nooo, my investment sucks and I might have to take a loss! How can this be happening to me! Not giving me big tax writeoffs for vacancy is Socialism"

Crazy, I had never heard of such a thing. Edit: Expenses are write-offs for sure but you are limited to the amount of income it generates. So for example if you made $1 during a particular year $1 is the max you can write off, assuming you did in fact have a $1 expense.

I wish my effen landlord would respond the air conditioner maintenance request I put in a week ago. For mine I have a contract with a company named Rosenberg that does yearly inspections / maintenance to limit the chance that one of my renters would get screwed over in the middle of summer. It's not expensive.

The one time I had a major appliance problem that made one of my houses 'unlivable' was a hot water tank failed. During the Christmas holidays. Several months after they had moved in. When they had guests. So I set their family up at a nice hotel at the riverwalk downtown until I had it fixed. They've stuck around for 7 years now and take good care of the place.

Maga_Chaos_Monkey says

Crazy, I had never heard of such a thing. Edit: Expenses are write-offs for sure but you are limited to the amount of income it generates. So for example if you made $1 during a particular year $1 is the max you can write off, assuming you did in fact have a $1 expense.

Don't forget about carryovers. This year's passive losses can be carried over to following years' passive income gain.

Good point. It's complex if you sell, in particular in Hawaii:

"In Hawaii, net operating loss (NOL) deductions resulting from net operating losses for taxable years ending after December 31, 1966, are governed by the Internal Revenue Code provisions. NOLs can be carried back to three taxable years preceding the taxable year of such loss and carried over to fifteen taxable years following the taxable year of such loss.

A taxpayer can elect to waive the carryback period for a net operating loss under section 172(b)(3)(C) of the Internal Revenue Code, which is operative under chapter 235 of Hawaii Revised Statutes (HRS).
However, this election does not extend the net operating loss carryover period beyond fifteen taxable years following the taxable year of such loss."

I was apparently eligible but turbo tax offered it then choked at the end. Pretty buggy software. I should have hired a pro. I pretty much just said fuckit and removed that one. It wasn't a lot.

I'm just glad I'm finally getting back part of the 7.5 percent tax on the GROSS Hawaii makes you pay up front when you sell if you don't live on the island. Some form filing to show your net capital gains gets you the refund but I did it near the end of the year and didn't have time.

So I filed state takes and am getting it back that way. Nice 38K they've been holding onto.

HeadSet says

Patrick says

How did they intend to collect $60,000 a month? What program is that?

I presumed it was Walgreens being held to the terms of a long-term lease.

Yep, it is more economically beneficial for Walgreens to pay the $60,000 a month until 2033 then to keep the store and pharmacy open in that Democrat shithole.

What has our country come to if you still consider California as still part of our country.

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AmericanKulak says

We do need to reduce tax writeoffs for vacancies.

There really are no tax writeoffs specific to vacancies. Even so, writeoffs are no substitute for profit. The reason landlords will not discount rents for vacant properties has to do with "comps." Lowering the rent on one property will put downward pressure on surrounding rentals, including other property they may own. Also, a discounted rent will lock in the low price for the rental period, while 2 months vacant with 22 months at full price would be more revenue. The landlord (or the management service) will thus keep the property vacant while hoping a full price tenant comes along. Even when vacant for months, the landlord just considers the lack of revenue like a "sunk cost" with no bearing, while hoping a full price tenant will be along any day now. Another issue may be the financing. Once a lower rent is established, the properties collateral value is lowered accordingly.

A decade or so back, I had tried to rent some commercial property that had been vacant for years. It had a large parking lot and a suitable building. However, the owner would not budge from a very high price and the place remained vacant for years. May still be vacant.

HeadSet says

Even when vacant for months, the landlord just considers the lack of revenue like a "sunk cost" with no bearing, while hoping a full price tenant will be along any day now. Another issue may be the financing. Once a lower rent is established, the properties collateral value is lowered accordingly.

The mall near me operates that way, I think. Place is a tomb. Especially when it's last anchor store - Macy's - closed down. I suspected the reason was exactly as you just outlined.

They have this display - since before COVID - of a great redesign. Includes office and residential towers, etc. Of course, that was planned when interest rates were at rock bottom. Nothing has come of it. It's a glorious effigy of commercial RE stupidity.

Another mall up north about 8 miles on the freeway didn't do that. In fact, many of the stores that left my mall went there. While I haven't been there in a while, they still have both JC Penny's and Macy's, I believe.

While normally I hate government intervention, I think some accounting changes that force these property firms to mark to market for vacancy or some sliding formula should be applied.

MolotovCocktail says

I think some accounting changes that force these property firms to mark to market for vacancy or some sliding formula should be applied.

That needs to start with the banks. "Mark to market" would stop the banks from keeping instead of selling foreclosed real estate, which banks keep because true price discovery would lower the bank's assets held and lower the amount the bank can loan out overall. People who buy the foreclosed real estate at actual value could afford to rent it out at the current market rates.

Maga_Chaos_Monkey says

The one time I had a major appliance problem that made one of my houses 'unlivable' was a hot water tank failed.

Been in that boat with a two flat. Couldn't have been the basement water heater.... nope, 2nd floor. What a cluster. We got it within 10-15 minutes though, but damn it could have been bad.

Still don't know why it broke. Wasn't a freezing situation. Fortunately I can install one myself so it was just a new 30gal water heater. Not expensive. Did get the water pan and ran PVC to the HVAC condensation drip drain for any future issues. That building is long gone though now.

Patrick says

DeportLibtards says

DeportLibtards

How did they intend to collect $60,000 a month? What program is that?

That simply a mistake. $60K per year is more likely.
Unless the building is own by Newsom and tenant is CA government.

REpro says

That simply a mistake. $60K per year is more likely.

Nope.

Here they are trying to sublease it for ~$35k/month ($417k/yr) until 2033.

https://brevitas.com/p/SvlN2Zok2/former-walgreens

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40% of California residents are on Medicaid. Now Newsom is blaming Trump, who is just over 100 days in office, for putting California in the red.

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Interesting twist on the money laundering associated with California's various boondoggled 'forever to nowhere' infrastructure and transportation projects? The laundering is creating surface failed Potemkin projects while the real money is going into digging underground tunnels/transport hubs/freeways etc. and shafts? Tudor Perini who is 'in charge' of these projects has a main mission statement of high tech tunnel and shaft digging operations. They are also slated to receive huge monies to 'upgrade' Alcatraz. Boondoggle means laundering to secret projects going on underground? How Pentagon of them.

There was that Starbucks employee who stated that celebrities have access to rapid transit underground freeways in LA that the surface crawlers don't have access to, and they get free Starbucks along the way.



https://t.me/DeepDives/41696

Isolated brush wars with arrested politicians gone off the reservation? We can handle that instead of organized Civil War.