All Forum Posts by: Brandon M.

What about holding it for the 3-6 month period required and then do a cash out refi? You can probably get most, if not all, of your cash back and it would still cash flow. Then you get cash to spend again while still holding that property. BRRRRRRRR

Not to make this into a religious conversation but if you are a Christian there are good options available. The simple version is we are considered “self pay” when we go to a doctor or specialist. They will charge us 20,30, up to 75% less than they charge a patient with health insurance (you have to ask for that discount) My “deductible” is $300. After that we are covered 100% on top of the $300. For my daughter’s birth via c-section we paid $300. You have to pay out of pocket or make arrangements with the provider, and then you get the money back after the fact. Pre-existing conditions are handled differently but you can get scripts for massages, chiropractic adjustments, etc, that are fully covered. For any family of 3+ you pay $495/month. Same rate for a family of 3 as it is for 10. I don’t want to take over the conversation but if you want more details feel free to PM me.

You can 1031 it into any other “like kind” property. That can be single family, multi, self storage, commercial, office, etc. Even completely passive investments if you want. Just think of it as investment property for another investment property to make it simple. If you need a good QI, I suggest you speak with no one other than Dave Foster . I think he was born on 10/31, his street address is likely 1031, and his middle name is probably “tenthirtyone”. Literally Dave eats, sleeps, and breathes anything and everything 1031 related.

Justin R. Are you talking about creating a new DST from scratch that would acquire property and then sell off shares of it to other investors? If so you have to get a securities attorney involved, you must have a Series 7 license to sell them to other investors so it is seen as a security by regulators. I can help you sell one once you have the structure fully in place but I don’t have any experience creating one from scratch.

They could 1031 exchange their properties into a passive income stream such as a DST. Essentially they become an investor in a larger property (multi-family, self storage, etc), receiving a preferred return every month with ZERO action required while still staying exposed to the real estate market. DSTs are perfect for the retiring investor who wants to continue to make money without any of the work. Typical returns are 5-6% plus any capital gains upon exit with a 5-7 year hold period. There are some other requirements but that is the gist of it. (minimum $100k investment for a 1031 exchange, they must be an accredited investor, etc). If interested let me know and I can send you an example of one available now so they can see the structure, etc. They must be purchased through a Series 7 licensed advisor (I am one) but can be an option for completely deferring any capital gains for tax purposes.

I have had this happen on 2 properties now. The water company claims they will try to get payment from the previous owner for a few months but then later they just end up sticking it to the current owner. These are government owned/run utility companies, not private companies. I have even had to pay a water bill from 2009 even though the property had changed hands 3-4 times since then and the water company never figured it out until now. Sucks totally but I wanted to sell the house and the buyer knew about it so I had no choice but to bite the bullet. Was only a couple hundred dollars and I was making $20k+ so it was a drop in the bucket. Since then going forward I always check for unpaid utilities before buying something, title companies here won’t check those automatically unless they are asked specifically. They said they would need SS# for all previous owners, etc.

Is this a not so obvious way of trying to pitch a property? Hoping someone will message you and offer to buy it from you? Guessing from the description this is either Sulphur Springs, Ybor, East Tampa, or South St Pete. Sounds like a war zone type deal though.

One possible option Johnny is referring to is a DST. Many people use them either as a last minute fallback when they can’t purchase any of the properties they chose during their 45 day period, or as their last 1031 exchange as they are a completely passive income generator. Mailbox money so to speak.There are some restrictions, such as being an accredited investor, minimum purchase amounts ($100k for 1031), and illiquidity, but they do purchase higher class assets. Multi-family, self storage, healthcare facilities, etc. You have to have a Series 7 to sell them (which I do) but I could show you one we have currently just so you could get an idea of the structure. If interested in that send me a PM.

What about just diversifying the location of your investments and/or the class of real estate? Could be commercial, could be retail, self storage, whatever you feel is a more stable/safer asset class. You could either go into one of those asset classes on your own and self-manage or find property manage, or if you prefer you could find a DST of one of those asset classes that would be completely 100% hands off.

For instance, the most recent one we are selling (not a sales pitch, just a disclosure that I am also Series 7 licensed which you do have to be in order to speak with clients about DSTs) is purchasing a large multi-family complex in NC, one in MN, and one in CT. Those are 3 different areas completely, so aren't tied to just one market in case of recession, etc. Something like that provides investors a 5% return with a 5-7 year anticipated hold, and does qualify to be purchased through a 1031 exchange ($100k minimum). I can get into more of the DST details if you so desire, I won't take over this post with all of those details. If you are interested in seeing the pitch book on the deal please send me a PM.

You could also purchase something like a DST with the remainder to avoid paying taxes on any of it. You are typically looking at 5-6% interest earned on the money but it is completely passive and backed by some asset (multi family, storage, commercial, etc). 5-6% interest isn’t something to get too excited about but sure as heck beats paying Uncle Sam anything when you don’t have to. You do have to be an accredited investor so DSTs aren’t for just anyone. Let me know if you want more info on one, I have docs on one right now I could show you.