All Forum Posts by: Alex Olson

@Account Closed said. I would also had that you can buy something using an exchange and then refinancing that purchase to pull cash out if you wanted to. You can also hold it for a year and a day and do it again on another asset if you didn't find the perfect replacement property the first time. All of these options are better than paying taxes. So either don't sell or do sell but do a 1031 exchange is my advice. 

@Louis Zameryka I would recommend investing in a market that you have lived in, frequented, have close family or close friends that have ties to that market. I am in KC and we have a lot of coastal investors that we take care of. Near turn key is the way to go and buy, at a minimum, a duplex sized property in a growing sub market. Find a good agent that can get a team together that has a great reputation. There are some on this site that can help you out (I am one of them). If you buy something and don't like it after a year and a day you can 1031 exchange into something else at the exact same price you are selling it for and suffer no tax consequences. Real estate is a smart move but is slightly more complex than investing in the stock market but your wealth gains are significantly more. Hope that helps!

@Daniel Francoeur A lot of sellers have missed out on the tax benefits of a 1031 exchange either because they didn't know about it or they had bad advice from a CPA that didn't understand the rule. It it's basic form - the rule is that you must hold all funds from your sale (at closing so you never touch the money) by a qualified intermediary. At that point you have 45 days to identify up to 3 properties (I recommend identify 3 properties - no more no less) that are equal or greater in value (sold price) than the property you just sold. That's the basics - yes there are more details about it and different strategies but if you are like me, keeping it as simple is possible is the key to ensuring success your first time around. 

@Jake Lee Great to meet you as well. I, of course, am partial to Kansas City. I have several out of state clients, specifically from california that like the KC market for it's recession resistant work force (warehousing, industrial, health, and government + a mix of tech and ag) and returns (6.25-7.25% cap rate for medium sized properties). Let me know what you are looking for and would be happy to assist. 

private money is usually from close friends and family. Hard to come by. Hard money is easier to come by but much much more expensive. Read Brandon Turner's book on no/low money investing. Hope that helps!

call, text, call again. Then find a new agent. I am always available for clients that are serious about investing. Some agents are not. Some agents only work with sellers so find one that likes working with both. 

make sure you select a really good QI (qualified intermediary) and talk to a good real estate CPA. What market would you be buying in?

Clemons Real Estate is who I selected because they focus on commercial and large apartment buildings which is what I wanted. Networking is hard but you can do it through linkedin, bp, Facebook, Instagram etc...finding a mentor is hard to. 

@Mini Grider You may find the best of both worlds. Not sure what area you are in but we have a really great credit union here that is very large and does investment loans and does primary home loans all with great rates and terms. I wold not do it though just to build a relationship. Often times, these types of banks are not the same. They do one type of loan a lot more than the other. But, finding a local bank that is aggressive on both sides of the isle is a huge bonus!

@Josh Alley Have you invested in real estate before? Do you own your own home? If your answer is no to both of these, get an FHA loan on a fourplex, triplex or duplex and live in one unit and rent out the other. If your answer is that you own your own home, still buy at least a duplex that is near turn key to get your feet wet and learn the ropes. Buy in a great area that will appreciate and rent easy and then refinance in a year or two to then do the BRRR strategy. Hope this helps!