All Forum Posts by: Joshua Thompson

Hey Nick

I'm not a tax professional so you will want to also hear from the good professionals on here.

From what I've read it shouldn't be an issue if you're in a partnership and you want your partner to buy you out at your basis. From what I've read this doesn't usually create tax but you do have to determine what your basis is, as it may or may not be cut and dry as it sounds. 

Why would you want to do this? It almost seems like it defeats the purpose of investing in the first place.

If you're trying to do this as a gift you may run into the issue of a bargain sale.

Also, depending on your situation and further details could change the answer.

Would love for any of the professionals to let me know if they agree or disagree!

Originally posted by @Cody L.:

Originally posted by @Joshua Thompson:

Originally posted by @Cody L.:

If it's a deal you can easily flip it to someone.  

It's a few properties. Would you recommend trying to sell one or two, wholesale, or buy and hold? Like I said Houston is not my market.

Personally?  I'd get all of them.  While there are some buyers who will pass on anything that's too big, there are also people that will pass if it's too small to mess with.  So given both options will leave some buyers on the sidelines, go with the option that'll make you more money. 

Obligatory: 

I think it's worth giving a shot at. 

What will anyone else do if they decided to move forward with this opportunity?

It's a few properties. Would you recommend trying to sell one or two, wholesale, or buy and hold? Like I said Houston is not my market.

@Brian Alfaro

Thanks, I just got it!

Hey BP, I hope all is well. I'm in a situation where I'm trying to figure out what would be the best course of action.

I recently came across a mortgage lender that foreclosed on roughly 54 properties in the Houston Texas areas, 32 of the 54 remains. I do zero investing in Houston. Some of these properties are fully renovated and others partially renovated. Some of which are on the market and others off markets. 

The lender had a client that over-leveraged which resulted in the lender foreclosing on each loan.

After speaking with the lender for the past week they gave me an updated list of what still needs to be sold. Which leads me to determine if this is an opportunity, trap or other.

My situation is I have a little stashed away I was saving for my next deal, I don't know anything about the Houston market and won't buy unless I know someone that does.

I would love to know your input, ideas, advise or hand. What would you do if this landed on your plate?

 I'll do some reading on what is considered "doing business" in that state. I ask because it seems as if every two weeks here in CA there is an article about someone getting nailed because they stated they did no business in CA but CA disagrees. I wonder if CA is the only state going after these businesses as hard.

If you have a remote employee finding your deals in Nevada but you're incorporated in Texas and all your properties are in Texas, do you need to incorporate in Nevada as well?

 Hey Pam I'm not sure if you noticed but I don't see a title anywhere.

Not a 1031 expert here but from what I've read the short and sweet answer to this is "no". To perform a 1031 exchange and deferred all of the taxes you must invest all of the money received into a like king property. If you attempt a 1031, receive the cash stating "you'll invest this into your other properties" at that point it no longer is a 1031 and you'll need to pay taxes on your gain.

@Michael Ritrovato

Hey Michael, there are plenty of good CPA's and EA's on here that work remote and contribute plenty to BP's forums. Myself and the CPA I work with both invest in real estate and are located near Agoura Hills. Shoot me a message if you have any questions.

As far as what CPA's & EA's charge for their services it varies. It can be hourly or a set rate. It's usually at the professional's discretion.