All Forum Posts by: Daisy Ferreiras

I was hoping to do another BRRRR, but I'll leave some of my money in the deal. Would it be worth it to leave some of the money into the deal or just let this on go for now? Thanks in advance..just needing help talking through this deal. If I keep it as a buy and hold would I make my money back eventually?

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Originally posted by @Eric Nelson:

Glad to hear everything worked out great!

Hey Eric! Thankfully it did..now I have more confidence in the next one lol

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Originally posted by @Tom Shallcross:

@Daisy Ferreiras - great job and congrats!

For the Opportunity Zone benefits you and @Matt Hotze mention, the original funds invested must have come from capital gains and you also must set-up a Qualified Opportunity Fund to technically for any asset in an opportunity zone to reap the benefits.

You might be well ahead of that, but just wanted to bring up there's a lot of ins' and outs so please contact your attorney and accountant. It's somewhat of a process and I documented mine here if interested: https://www.biggerpockets.com/member-blogs/12409/86947-my-first-opportunity-zone-experience-and-how-others-can-do-the-same

Hey Tom,

That's exactly right! We talked to our tax guy and helped guide us on setting up a multi member LLC in order to set up a qualified opportunity fund. I would recommend anyone interested in investing in an opportunity zone to consult with a tax advisor and an attorney. We found that really helpful

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@Logan Reinard thanks Logan! My husband was getting out of real estate investing and was working with a friend to get rid of all of his properties. He told us about having to pay capital gains after we sold, which lead to me deciding to get into real estate investing (my husbands job is a big time consuming and he didn’t have time for it anymore). I decided to try and do a 1031 exchange and found this gem. It was a level 3 rehab so I think I definitely bit off more than I can chew but it worked out!

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@James Barnes thanks! I’m getting around $260 once I’ve put money aside for repairs, vacancy, and cap ex

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Originally posted by @Matt Hotze:

Congratulations. Are you investing locally or out of state?

I also looked up opportunity zones for those interested. "An opportunity zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as opportunity zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation of authority to the Internal Revenue Service" List of them is here: https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx

We invested locally. It was a lucky find

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Originally posted by @Young T Song:

Awesome Job! Can you explain more detail about the opportunity fund? We are trying to do 1031 exchange as well. Thanks

Yeah! It’s a whole complicated step but I’m happy to PM to explain how we did it

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Originally posted by @Mike C.:

@Jaron Walling That's what I have always understood as well. Doesn't this create a pretty big issue for the basis of the BRRRR method?

I’ve always understood the goal was to get it rented out and have it cash flowing while you’re waiting on the seasoning period to end. Also, there is not incentive if you paid cash for a deal and the refinance seasoning period. At least not to my knowledge!

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Originally posted by @Jaron Walling:

I think there's a seasoning period of 6-12 months (with most lenders) regardless of how you purchase the property. You can delay finance to access cash but only to the purchase amount or wait and cash-out based on the ARV. Someone comment if I'm wrong.

The season period was 6 months before we refinanced

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Originally posted by @Eric Beck:

That's fantastic! Did you pay cash for the property so there was no seasoning period for the cash out financing?

Yeah we paid all cash for it! Wish we could have bought more properties but we were pressed for time trying to do a 1031 exchange. So we put the funds in an opportunity funds and purchased this house and used the remaining funds to rehab

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All Forum Posts by: Daisy Ferreiras

Daisy Ferreiras has started 8 posts and replied 41 times.

Post: Is this a good deal??

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers

Post: First BRRR; Final numbers