I'm new to BP and also new to everything Real Estate. Hoping to make some friends & contacts and also learn as much as I can about it all. Seems like I'm in the right place so far!
I would really appreciate any advice & wisdom I can get on this project I'm dealing with now.
A family member is going to sell her SFH in California that was put into rental service over 6 years ago. Sell price will probably be around 1million, net around 725,000 and would have a ridiculous heart popping CG tax. So 1031 to the rescue. I've learned a ton about it (thanks Bill Exeter!) Here's where I need the help:
She has great credit but currently makes little income as the renters have left in preparation for selling the house. I want her to have enough multi-unit properties/cash flow to not have to worry so much with better redundancy and newer properties etc.
Where would be a good place to invest long term? I was thinking Washington State (Seattle or Vancouver suburbs) since it would have no state CG tax and it's not too far from Portland where I am. If that's a good idea, are there any RE Brokers on BP here keen on this kind of investment? How about Property managers?
Would it be possible to get enough loans to cover the 375K or so using the income of the future properties along with that massive cash down payment? One lender I talked to said they will only consider the income of her current property for the last two years (doesn't make sense to me since that property will be sold so that income won't be there anymore!?) and not the property she would exchange into.
Another thing we are considering is using a portion of the sale to invest a percentage in a SFH here in Oregon that my I can live in and then pay her rent appropriate to the percentage she invests in, and I can use her deposit to cover the 20%+ needed for the loan to drop the PMI. Will this work with lenders or is this too crazy?
Wow sorry for the long first post...
oooh just saw Paul Timmins post about IREM and property managers. Thanks, that answers at least one of my questions already!
Hi Mike, greetings from Seattle, WA. I am an investor / investment-minded broker.
Let's chat sometime - we can exchange ideas. :)
Adrian Chu, Adrian Chu & Associates | Horizon Real Estate | [email protected] | 2064075452 | WA Agent # 107768, WA Lender # MLO-920749
@Troy Fisher , @Ryland Taniguchi , (Adrian has already chimed in), and @Brian Fouts are all investors who I would recommend contacting to see if your family's investment goals are something they can help you with. Troy is looking for more of a syndication or JV deal I believe, Ryland has experience lending money and with out of state rentals, Adrian can speak for himself, and Brian commonly works with private money from investors and may be able to work with you on getting that lump sum invested so as to dodge capital gains taxes.
If you are looking to JV a deal or 3 in the Seattle area, I can also put you in touch with a few buy-hold landlords who can advise or possibly work with you on that.
@Michael Hood will you be using Exeter 1031 Exchange Services (Bill Exeter) for your neutral facilitator? If you like I have a 1031 specialist here in Seattle that I could recommend.
The difficult part of all exchanges right now is how fast property sells, and the unwillingness of sellers to accept contingent offers. That said, I know some have been able to do just that, and close both their sale and their purchase(s) within 45 days.
Pleasure to make your acquaintance!
How do you tag people the @name isn't working so well for me, maybe a post minimum?
Adrian, I'll shoot you a message.
Thanks for the tips Alex, I appreciate the info and referrals! I would like to get to know some people up there that have a good reputation for managing properties too, though I will have to narrow down the playing field before I start I guess.
Hi Richard, Yes I'll most likely be using Exeter for the 1031 QI. I can imagine it will be pretty difficult to get an offer in on some properties in the 45 day timeline. I'm not too concerned where so if I have to branch out of Washington to get a deal that works with what we need, then that's ok too! Thanks for the insider connection offer I appreciate
use the @ symbol followed by a ? and a list of the names will appear below the text box, click the one you want to tag.
Thanks @Chris E. !
I take it that I can't edit my previous post to correct those can I?
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