All Forum Posts by: Account Closed

That's what I'm aiming for, although I've yet to take the plunge. I plan on pulling the trigger in the next 6-12 months, all in out of state turnkey properties. The fact that I'm located in the New York metro area necessitates out of state, and my hours dictate turnkey.

I'm also looking for any followup, as I'm considering investing with him in the next 6-12 months.

Really great information here.  Bigger Pockets is awesome.

@Jay Hinrichs House hacking is something I heard Brandon Turner say on the podcast.  It means buying a multi-family, living in one of the units, fixing it up all the while.  When you've accrued enough savings for another multifamily, off you go again.  You wake up in a couple of years with a couple of multfamilies under your belt.

Originally posted by @Rob Anderson:

Originally posted by @Account Closed:

Originally posted by @Rob Anderson:

Joint Venture

That's what I was thinking Rob.  I'll do my due diligence of course, but do you have any more specifics?

@Arlen chou

Time is of the essence.  Well, not necessarily but I'd like to start sooner rather than later and I don't have that sort of cash right now.

 Specifics in regards to the Joint Venture? Sure. What do would you like specifics on? Thats to broad of question

 You're right, of course.  I have to get my read on before asking!

Originally posted by @Rob Anderson:

Joint Venture

That's what I was thinking Rob.  I'll do my due diligence of course, but do you have any more specifics?

@Arlen chou

Time is of the essence.  Well, not necessarily but I'd like to start sooner rather than later and I don't have that sort of cash right now.

@Matt Rosas Thanks for that bit of information.  I've requested the book from him, should be a great read.

@Tou V. I'm glad to hear that testimonial Tou.

Gonna head to the bank tomorrow for some HELOC quotes.

I've been considering a couple of options: house-hacking and turnkey properties.

I've been really turned onto the idea of turnkey investing after hearing the podcast with Engelo Rumora, and I'm interested in his company and Holton Wise's company out in Cleveland.

Is having your entire portfolio as turnkey properties a viable way to start investing in real estate?

How hands off is turnkey investing?

Is most turnkey investing cash-only, or can I use conventional or ARM mortgages to dip my toes into the pool?

Can I tap into a HELOC as a downpayment for a turnkey investment in another state?

I am putting this out there as I do more research.  Any help is appreciated!

Originally posted by @Dawn Anastasi:

I don't think it's necessarily the wrong forum.

How do you feel about taking the money from your parents in exchange for them to be "reserving" one of the units?  If this was a stranger would you feel the same way?

I actually feel pretty good about it.  It's quite a sum of money for such a small string attachment.

What is the optimal way for my father to pay the downpayment?  I've discussed it with him; it seems there's a huge tax implication for a gift of $250,000.

If this is in the wrong forum, can someone point me to the correct one to post it in?

BP Question Dad as investor

Background

I used to live in NYC and got a job in NJ 4 years ago. My father, generous man that he is, promised me a 20% down payment if I moved to NJ. He did this as an enticement, as I never wanted to leave NYC.

I made the move; he didn’t pay.

I changed my tune as I entered my 30s in 2011, got married, kid, etc, and I do not miss living in Manhattan.

I ended up paying my own down payment, no complaints, except that he reneged. Although he had the money, I never did actually expect him to follow through on his promise. He’s of the sink or swim school.

Anyway, he’s offering once again to pay a down payment, and this time I believe it’s coming from a genuine place. He’s fallen in love with my daughter and he wants to provide for her. I currently live in a 1.5 bedroom condo in metro NJ, which he believes is too small for my wife and child. I’m slowly starting to agree.

I’m looking at a multifamily in the New Jersey Metro area, 4 units, with a commercial property.

2 two bedrooms, and 2 1 bedrooms, as well as an existing deli.

I’ve only seen the listing online, and I’m waiting to get back to NJ from Austin to see the property. (I’m in the airport now).

The catch? The property is 5 minutes from Manhattan, and my parents plan to stay in one of the 1-bedroom apartments. They’d like to be able to stay there whenever they want. So 1 of the apartments can’t be rented.

The other option would be the purchase of a 3-bedroom, where 1 bedroom would be reserved for my parents.

Questions

• 1.What is the most appropriate way to accept my father’s money as a 30% down payment on this property? There are large tax implications with him gifting me $225,000.

• 2.Is now the appropriate time? I plan to house hack the units, but I have my hands full with the restaurant. I hope to: move from my current condo and rent it out (nowhere near the 1% rule, however), move into one of the 2-bedrooms, rent out the other 2-bedroom, collect rent from the commercial property, reserve 1 bedroom for my parents, and renovate the other bedroom and put it on the rental market in a couple of months.