All Forum Posts by: Leslie Pappas

My brother and I happened to inherit a property in Southern California and wanted some input on how to go about taking out the equity and the process of investing it into more properties. We've done some research and was considering a cash out refi and investing it out of state. Is this a good idea and what are the steps for this and working with other banks out of state? 

Anyone have experience in out of state investing?? The best way?

I am going through a divorce and will have to sell a SF rental in California.  I am looking into taking the money and buying in central Ohio, where I grew up.  I’m a complete novice at this - the house was our one time residence that we had been renting the last few years.  Any broad suggestions or things to keep in mind as I go forward?  I found a broker/property manager who seems knowledgeable.  Am I better off with one larger building or a few smaller?  Is 6% return realistic?  Any input welcome.

Hey BP Family!

I'm looking for some guidance on initiating a 1031 Exchange.
I purchased a SFH in NC under my LLC. I'd like to sell it and use the funds towards a vacation home in Northern California (the property has already been identified). I'd like to purchase the vacation property with a partner. My understanding is that w a 1031 Exchange, the new property must hold tile in the same way as the old property. In this case, that would have to be under my LLC? Someone please correct me if this information is wrong!

I'd like my partner to also be recognized as 1/2 owner in the new property. How does that work? Has anyone done something similar? Any lessons learned you can share? Who else was on your team throughout the process? Also, does anyone have experience with a reputable Qualified Intermediary or company who assists in situations like this?

Thanks in advance for your help!

@Colton Hahn Thanks Colton.  can you explain more on how to going into the syndication can be similar to a 1031?  I'm new to all that tax side.  If I were to sell 6, I understand I would have to pay the capital gains if I dont have a like-property.  I certainly dont want to throw $400k away in taxes.  Can I somehow sell and 1031 into a syndication?

Side note, BAM does syndications correct?  Can you send me info on that?

@Logan Krutsch, Your seller is looking at a normal 1031 either way. The DST is a specific type of reinvestment that was blessed by the IRS as a replacement property in a 1031 exchange in 2004.

DSTs in essence are a fractional passive ownership of part of a larger commercial asset.  You can find DSTs representing every type of real estate sector - medical, multifamily, commercial, self storage etc.  

They are sold as a security product but qualify as replacement property for the 1031 exchange.  Opinions are all over the map.  They are generally seen as safer and more conservative option and returns reflect that.  

As I understand, you can qualify as an accredited investor if you've made 200k for two years and reasonably expect to continue. I assume this is based on AGI on your tax return?