All Forum Posts by: Jeffrey Holst

@Russell Brazil I disagree the tax benefits can be substantial and can potentially make the deal significantly better. In general I agree that you shouldn't take a essentially risky investment and make it just for the tax benefits but some of these opportunities zones are in up-and-coming areas where you might want to invest anyway and if you're trying to decide between investing in an area that's up and coming in in an opportunity Zone and one that's up and coming and not in an opportunity Zone it would be crazy not to choose the one that's in the opportunity Zone particularly if you have some capital gains that you want to defer. the major benefit of opportunities on is that you can take capital gains from any investment class capital gains from a stock sale for example and use them to buy a business or real estate in an opportunity Zone provided you follow the rules and put it into an opportunity Zone fund and all that and then you can defer those games for up to 10 years but even more important part is if you do defer them for 10 years any games that you gained from the investment in the opportunity zone are 100% tax free. That's an ignoramus advantage they would be crazy to overlook.

@Max Ball pretty sure there's a limited time in which you have to put the additional resources in like 36 months or something I don't remember exactly but it's definitely not over the 10-year period

@Michael Allen Lee is right. The best structure here is probably a LLC which is really just a form of a limited liability partnership. You can divide the equity in the LLC based on who put what in. The only issue is you stated you might want to take new partners in the future which while possible could be tricky. Personally I'd have a new LLC for each partnership group. I have quite a few llcs I have a primary partner and we own some stuff 50/50 that stuff is in LLC 1 we have additional properties in LLC 2 that we own 1/3 each with a different partner. We have LLC 3 which 1 own 1/6 another partner owns 1/6 and my primary party owns 2/3s. By structurinh in multiple LLCs for each partnership group or ownership breakdown it makes it a lot easier. Also preserves liability protection. I will second many of the comments above though you definitely need to speak with a real estate lawyer in your area.

I think it's instructive to realize that there really is a cycle and it's almost always an 18 years cycle going back 150 years it's been 18 years peak to peak in all but two occasions ( both of which were the result of ww2). The nation wide peak was around 2006 which means in all likelihood the next peak won't be until around 2024. We are seeing signs on the coasts that we are moving from expansion to the hyper supply phase of the cycle but we are still very likely a ways away from a crash. For more info see this excellent summary market cycles. https://www.extension.harvard.edu/inside-extension/how-use-real-estate-trends-predict-next-housing-bubble

Wowsers this year has really started to move fast.  Less than 2 months to go.  I am sorry its been a while since I gave an update.

1) killed this goal way over 120 posts for year.

2) I am up to podcast 269 and should be able to finish them this year

3) As noted previously I have chosen not to pursue this goal

4) Still working on this goal to purchase with out a partner.  It might still happen but I have been distracted by some bigger partnership deals.  

Also exciting side note I have started syndicating some deals and thats going great so far.  Also we will be launching a video podcast of our own on youtube called the Old Fashioned Real Estate show where in we drink Old Fashioneds and talk about investment real estate.  Should be a blast.  Stay tuned or search us out on facebook or YouTube.

I 100% agree with @Lee Ripma,  Talk to bankers first make relationships with them.  I have been able to get loans with out a W-2 and with no regular income history but its been a challenge at times.  I have only been successful because I had prior banking relationships with commercial lenders in part because of my former employment but also because I personally did loans with them before leaving my w-2 job.

Unfortunately I don't think I'll be making it this time. 

@John Stewart Southern Heritage Bank

@John Stewart in Chattanooga you can get 20 year amortization with 20-25% down even going to 20 from 15 will help a lot on cash flow. 30 is better but isn't always possible. You need to get out and talk to some bankers and see what's available to you

@Mitchell Van Overloop Ill do my best to remember