All Forum Posts by: Jason Chen

So you invested in Tesla and Amazon, and now want to avoid paying the capital gains taxes by putting that money into real estate. Give me a while to consult my tax friend about this question because I have the same question too.

I'm 80-85% sure you just want this deal because you're both in love with the location (near the beach, and prime location too). There's emotion invested into this property already.

Now I'm sure that should you proceed to get these two properties and were to raise the capital needed, everything would run just fine. You'd collect the income you'd need to collect, and the property would appreciate just fine as well due to its prime location.

But here's another alternative. If you were capable of raising a total of $2.6 million in capital, why not purchase a high cash flowing property somewhere else in the United States for $2 million, with an ARV value of $4 million, and spend $600,000 on improvements. A property that would generate a ridiculous $500,000+ in cash flow each year, even after loan payments. You and your family would basically be covered for life.

These deals are rare, but they still exist from time to time. It's inevitable that they will still exist because human beings make mistakes and have been making mistakes in real estate constantly since the beginning of time. There was a 75 unit motel in my city that sold for $600,000 recently, and it needed maybe $150,000 total in rehab costs. It now generates over $250,000-$275,000 in cash flow a year EASILY at least, without factoring in loan payments.

At this point, I think before you finally even make a decision to purchase this property - consider the equivalent alternatives. There's no rhyme or reason to just jump into this EVEN THOUGH it seems ok. $2.6 million is a lot of money and a lot of money could be further generated from it. Even $1.3 million is a boatload. You gotta ask yourself, am I buying this to make some money and have a "jewel" property that I can feel good about having in my portfolio, or am I buying this because I believe I can extract the maximum value and dollar amount out of this 1.3 or 2.6 million?

To answer your question, how much cash are you able to put up? I'd first see how big of a HELOC I can get, and start going to all sorts of banks looking for commercial loans, and maybe even a hard money lender to generate more. I'd want the property all to myself and not involve a partner, unless your partner is a super awesome person. Just my opinion.

I'd say ignorance is #1 reason in my opinion

 Very very good find, since usually in hoarder's houses, all you find are piles and monuments of feces and toilet paper

So they put a makeshift pool out in the back, dug a few holes, and put a refrigerator outside. This doesn't seem too bad vs. some of the other stuff that could've possibly happened. If it happened on my property, I would simply just give them ample time to take the stuff down, as the lease agreement did not allow this kind of stuff in the first place.

most interesting thing was a pistol clip with a few 9mm bullets inside

i dont pay attention to who we vote into our cabinets, but i guess it would be a good thing if we got a more diverse ethnic mix into ours

 You'll almost never hear about a couple where its the woman who is "into real estate investing and understands all of it", and the husband "doesn't like it and prefers to not do 'fancy investing stuff'". I would imagine that if such a couple exists, there would be weird sex stuff going on all the time

 it would actually be incredibly smart

 Yes, that is exactly what I mean.

When you play around with the MLS program your agency will have in your county, you will become a master deal analyzer (for proeprties that arent worth a ridiculous amount of money like 5 million+) in a fairly short period of time.