All Forum Posts by: Anthony Vargas

@Ryan Haley Hello there! This thread is a couple years old now, but I was just wondering if you ever decided to follow through with your 1031 exchange with Memphis Turnkey? I am set to do an investor visit with them in June and have already done a 30 minute consultation with Andrew. So far, everything seems to check out and I am extremely optimistic. I’m not doing a 1031, but am just looking at them for a turnkey provider in general.

Can you provide any thoughts on your experience now that some time has passed?

Thanks!

Hello BiggerPockets!

My business partner and I are finally ready to get started in real estate investing through the BRRRR method here in Minneapolis. A realtor friend recommended that we form an LLC for our partnership. Is this common practice for partnerships? What disadvantages, if any, are there to doing this? What should we be considering before following through?

I know there are issues with lending to LLCs, but can't we get around this by transferring the properties from our names to the LLC?

Thank you I’m advance!

@Scott Jensen

I figured this would be the case. It wouldn’t make sense if it was legal to deduct expenses without having a property in hand already. Otherwise, everyone would just deduct “exploratory” business expenses for the heck of it!

Hello BiggerPockets!

I am still a newbie real estate investor located in Minneapolis, but I have been perusing some other out of state markets with larger cash flow margins. I recently finished the Bigger Pockets book on Tax Strategies for the Savvy Real Estate investor, and there was extensive discussions on business expense deductions. 

1. If I was to fly or drive to other markets to explore neighborhoods, how would I be able to deduct these expenses from my personal taxes (I do not have an LLC or other entity)? Is there a IRS Schedule that I would fill out?

2. Although most (> 50%) of the trip is for business purposes, can I even deduct these expenses without actually owning any real estate yet? 

@Tom S.

Yes this is precisely what I was trying to get at! Thank you for your response.

Hello Bigger Pockets -- 

While there's been some setbacks during 2020, I am finally aiming to acquire my first property in 2021. I've seen lots of discussion about private lending partners, but I was hoping to receive some examples of arrangements investors have made with their private money partner. To be clear, I don't mean hard money lenders. 

This will be valuable for me in structuring my own arrangement with Minneapolis-based private money. Thanks in advance!

@Jason G.

Wow -- again, many thanks for keeping up with this thread. It has provided a wealth of information for me as a potential investor with Roofstock. 

I am actually a little surprised that you were able to secure traditional financing on the sub-$100K property. Do Roofstock's financial partners provide this type of financing? I was always of the mind that sub-$100K properties were typically difficult to secure traditional financing for. 

@Tim Swierczek thank you for your honesty! Sounds like I know what’s next on my list!

@Anthony Vargas And then subsequently going to a bank obtain my refi?

@John Woodrich thank you all for your replies, but yes house hacking seems to be out of reach given my personal situation. Does it help at all that I plan to obtain my properties via hard money to do BRRRRs?