All Forum Posts by: Kory Thaut

@Anna Kampa Welcome to BP! You live in a beautiful area... life is good if you're loving your W2 job too!  I spend a lot of time over there but have yet to invest there. I believe there is, or has been, several meetups in the area you might want to check into. 

@Brian Braunhuber I'd be curious to know what you find with regards to lenders doing a HELOC on an investment. I've not had any luck finding one that will do it against an investment property.

@Account Closed comment above makes sense, but I am wondering about how I'll first get the new property acquisition underway as the LLC when the QI might be holding funds as me personally. I don't want to buy the commercial property personally, I want that in the business out of the gate.

Thank you both for your help.  

@Dave Foster Thanks again for the detail and white paper.  

@Shawn D. I'd emphasize what's in it for them and just ask.  If they're only getting .10% on the $20k in a savings account then offer to beat that.   Figure out what's fair and then provide an amortization schedule so they can see the whole added value of their "investment".  

When I bought my first primary home in the early 2000's, I had to ask my Grandpa for a loan so I had enough "reserves" in the bank.  I just drafted up a plan that showed the payments, interest, etc.. and then proposed it to him as a 1 year loan.  I think he had CDs at 1.5% and I paid him 2% or something like that (don't recall the exact numbers).

Good luck!

@Dave Foster Thank you for the clarification... esp on the withdrawals all being viewed as pulled from profit first.  That could have been an expensive mistake.  

I think most of my pause comes from the fact that I'd be buying the commercial property as an LLC, not as an individual. How does the individual tax savings of the 1031 from an SFR transfer over to the business purchase? And, are there additional steps needed in this scenario?

Thanks again,

@Dave Foster For off market deals, would the order of operation be:

1. Mail (or other) campaign to identify potential replacement properties
2. Higher QI before making over hand having under contract OR Can the hiring of a QI wait until after the property is under contract, contingent on the sale of the old property?

On the net sale comment above as an example, could I sell a $400k property and buy a $375k property if my actual gains are only say, $150k after realtor fees, mortgage payoff, etc...?

I am looking to harvest some SFR equity in Q1 2017 from an investment property I've held for 5 years. Ideally, I'd like to move the gains into a 10 unit commercial property and pull out my initial investment. I already have an LLC for my SFRs and Plexes and would like to use that business for residential commercial multi family.

My question: Is there any possibility of moving the gains (about $250k) from the SFR into the commercial building purchase via a 1031? As you can imagine, I don't really want to pay gains on the $250k.

Thanks,

@Dave Foster thank you for the additional information - Quick fllwp question. 

In my scenario, I am buying a 4plex that will need to close in February (want it under contract before it's gone). I'll be selling an SFR that will close in May. My plan is to reverse 1031 the SFR gains into the 4plex. However, it's my understanding I can't just purchase the 4plex now as I normally would, I need the intermediary in place at time of the 4plex offer / purchase, right?

Thanks!

@Pearce G. I am working on the same type of thing... I am working to buy a 4plex before I sell one of my SFR and harvest the equity with the intent to 1031 the gains from the SFR into the 4plex. The 4plex will need to close before the sale of the SFR. It's called a reverse 1031 and I am in the very early stages. The part that is giving me pause is the need to establish everything as a 1031 transaction before I eve make an offer on the 4plex. I am very early in this process so hopefully someone with more knowledge on the topic can weigh in.

Good luck!