All Forum Posts by: Alex Olson
Alex Olson has started 14 posts and replied 2086 times.
Post: Know A Good DST Company ?
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
Quote from @Matthew Shedd:
BP Braintrust,
I'm looking for some insights/perspectives on DST OR alternatives. My wife and want to move away from the traditional ownership of small residential properties. We've recently invested in syndications and are very happy with the hands-off nature of the investment along with returns. Moving forward, we'd like to unload our rentals and move the proceeds into syndications, however, we do not have the accumulated losses to offset capital gains/recaptured depreciation for our rental properties. We don't want to do a 1031 exchange into another property, but rather move the proceeds to a truly passive investment like a syndication or DST. We're just starting our education in the DST space. Each syndicator we've talked to cannot accept a 1031 into the syndication unless it's a TIC structure and the few that do it, only do it for existing clients/investors. DSTs, however, do accept and/or are designed for 1031s.
I see the most common DST returns to be in the 4-5% range. DST providers/literature often cite that though the return is low, when combined with the tax deferred benefit, it's better than selling an asset, paying the capital gains, and reinvesting in a normal syndication. Of course the proof is in the actual investments and numbers, but this assertion seems unlikely based on the value-add upside normal syndications can provide which DSTs can't. I would welcome any feedback on viable 1031 options as well as alternative options that will yield the same or higher long-term returns. Thanks.
I have a 1031 DST group that is excellent. He does not put your money in a simple inland fund or some other big conglomo with 4% returns. DM and I can try to connect you.
Post: Advice needed for out of state investing
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
Quote from @Ivan Luna:
@Charles Granja I would love to keep investing here and neighboring areas but the amount of capital I would need might take a while before I can even start looking for something out here. I haven't looked at the 29 palms/yucca market yet but will be looking into, thank you.
@Alex Olson. Yeah he definitely has a point as being able to tend to the properties would be a lot easier. I eventually want to make it as passive/hands off as possible so wether its nearby or out of state I would need to get the right team in place.
Post: Advice needed for out of state investing
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
@Ivan Luna I think like what @Charles Granja mentions. You have to have the right properties in the right location. I can only speak for KC and investing out of state is harder if you don't have the right team in place. There are areas that I would stay away from as well as property types. A great broker can help point you in the right direction based on your feedback. Vintage, location, etc...all matter and making a little less cash flow for a safer, newer investment is a wise strategy for a first time out of state investor. Happy to chat more!
Post: Just inherited 485k house, considering offering seller financing
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
@Mike Schoonover Of course I am partial to KC since I live here but like @Matt K. says I think there is an opportunity here in the midwest to make some great cash flow with some good appreciation AND fewer legal constraints/renter issues. I can show you a few real examples of investors who have sold their property in CA and bought in KC with the amount of money they cash flowed. The transaction is tax deferred through a 1031 exchange which is the best wealth building tool that too few people use.
Post: How to best leverage my cash from my apartment.
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
@Patrik Kisucky I really like the use of a 1031 exchange to leverage your exisiting wealth to build more wealth. Some times in a state like MA, a state like MO or KS could be a better option. We can look at a few different ways to leverage your current equity to build your cash flow and your wealth without paying any taxes at the time. I have some examples of what past investors have done in similar situations here in KC if you want to chat?
Post: Loan officer in Kansas City area
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
Quote from @Jhenyn Aquino:
Hello BP community,
Looking to invest OOS in Kansas city but need recommendations for a loan officer to see how much I can afford. Any help is appreciated, thank you!
Hey what asset class? What part of KC? What experience do you have? Answers to these questions will help drive the recommendation.
Post: Looking to meet Investers around the area, Kanas City MO.
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
Hey Drew - DM. I have some good KC info for you.
Post: Suggestions on how to best utilize out 1031 Exchange funds
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
have you looked at KC or Midwest? I have some recent examples of out of state investors and what they did with their equity in a 1031 exchange. I have a cash flowing set of 6 plexes (24 units) in a class A- market for $2.3mm. Could be worth talking about?
Post: RE-STARTING MY INVESTMENT JORNEY
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
@Alda Watlington As @Dave Foster says, completing a 1031 exchange is a great, fast, safe way of growing your wealth. We have a lot of good examples of what investors have done with their 1031 exchange in Kansas City and I am happy to share those if you are interested?
Post: Is now a good time to invest - My Thoughts
- Real Estate Broker
- Kansas City Metro
- Posts 2,176
- Votes 1,173
@Andrew Scott Schrum I like your analysis. I think it is always a great time to buy multifamily with commercial loans. You are only locked in to a 5 year term anway and can/should refinance when rates go lower. If the deal works, it works, regardless of rates. If rates go down you refi, if rates go up, you did well. If inflation goes up, you did well, if inflation goes down (happens only briefly) you wait a year.