All Forum Posts by: Dee Cole

Hello, 

Is this group up and running yet? I would like to be apart of it. 

Hey @LaSaundra Spencer,

Nice to meet you. I am looking for anything from single family, to duplexes, to quadplexe in decent areas of town. I am willing to do small to medium renovation, but nothing to drastic at the moment.

Hi,

I am an investor from Charlotte, NC looking for wholesalers in my area. Any on here want to do business please contact me.

Hello @David Kerner welcome to BP! 

BP has investors from all walks so I am sure you are not alone. In business in general there are many ways to make it happen so I am glad you saw the light!

Hi George,

Great question!

TIC (Tenants in Common) is a form of direct ownership that is not affected by the 1031 exchange rules as long as the co-tenants are not treated as partners for income tax purposes.

So, as long as you and your sister have a direct ownership in the property, and do not share ownership through an entity such as a limited liability company you generally will be allowed to defer gain under the 1031 exchange provisions. If you two do not have direct ownership, then generally you and your sister will have to recognize gain equal to the sales price of the property less the adjusted basis of the property and depending on the depreciation method rules you may have to reclassify some of those gains out of capital gain treatment. This would be case specific and allocated to the two of you depending on the operating agreement.

There are more rules and nuances that must be considered as well, so definitely consult with you CPA before transacting. Hope this helps!

Hi Christine!

It's never to early to get expert advice! 

At your stage the lawyer will be more involved initially in determining business structure. The CPA is helpful as well in this, but we usually have the attorneys draw up the operating agreements and we usually advise them on if it makes pratical sense or not. 

In a nutshell you will want to make sure both the CPA and attorney both regularly deal in real estate. The CPA will guide you on operating the investments in a tax effective manner, while the lawyer will guide you in ensuring that you have a legal shield around your assets. Both equally important. Ask them how long have they been in real estate, and have them break down strategies that align with your objectives. 401k & IRA distributions, Depreciation, 1031 exchanges, passive income deductions, and just tax preparation is what you will ask your CPA. They will help you more throughout your investments life, and in exiting. The lawyer will be pivotal more in setting up the structures.

Welcom to BP @Tyler Phillips!

All the information an connections you need are here on BP. 

Welcome to BP and best of luck!

Hi @Jana Bikas, welcome to BP!

1031 exchanges are very complex vehicles provided by tax law. I would read up on general information from select books such as Rich Dad Poor Dad, I think they have a tax book that breaks down some tax topics pretty well. I would also search the forum here. 

From there I would get a CPA who performs these on a regular, who can guide you through the nuances. 

Best of luck!