Fire All My Tenants
Ted owns a commercial shopping center he received from his father’s trust. The center is worth over $3,000,000 and is fully depreciated. The tenants are driving Ted crazy. They go out of business, re-decorate their suites and move out with little or no notice. In addition to the constant construction and repairs, Ted must negotiate leases, keep after the tenants to pay their rent, and hold the tenants to the terms of their leases when they decide to ignore the rules.
Ted tried a professional management firm several years ago with limited success. The firm only seemed to respond when the tenants had Ted intervene. The cost of construction and repairs was significantly higher than when Ted contracted for them.
CA TD Investments, Inc, (CATD) was able to use a Section 453 installment purchase to get Ted out of his untenable situation and increase his monthly income by 40%.