All Forum Posts by: Richard Heine

I have mortgages on several of my SFH rentals. The title is in my LLC and the loan, also. Problem is banks are very risk averse on these things. If you dig deep in the fine print you pledge your personal assets like your primary in the fine print. Not sure if this adds to the original question but it's hard to shield assets from a lender just because you have a nice LLC. And I could not get the loan without the fine print.

There is an firm, maybe an RIT, buying property at top dollar in my area the last few weeks. I;m talking multi family, distressed very old SFH and more. This is probably the best seller's market in my lifetime so I'm personally selling. What would be their motive; 1032 money to unload, depreciation angle? I have always started with a 2% rule strategy as my floor when looking for new rentals. These properties with the soaring prices are less that .5% even lower. What am I missing. Seems like short selling in real estate.

I am in the middle of a 1031. Bought this SFH five years ago for 132K cash. Got a contract for 225K. There are some other things going on but my gain will be 90K. My accountant is telling me any money I pull out for myself ( non real estate) will be taxed. What happened to my basis? Does that not count? I was thinking I could leave 90k in the 1031 escrow for rental property shopping and take the rest.

Thanks

*R

This is really wide open. Your new member can be a percentage owner of the LLC. Say you 75%, them 25%. This would be of assets including depreciation deductions but also liabilities like tax. I am adding in family members so mine is different. Some have percentage ownership, one will have ownership or rights over one property.

There are some real pros in here that will chime in.  I have received great advice on these matters in here that my tax person was not sure of.

I can't subtract my basis which I already paid tax on?

Tax issue. I have a property I paid cash for years ago, say 100K. I have a buyer now at 200k.  Am I only concerned with deferring tax on the 100k profit.  I was told that in a 1031 closing, they escrow all the money waiting for my followup purchase closing. By purchasing another 100k property will I get my 100k equity out. 

Thanks

Not sure. I work with four banks. Three want seasoning of six months and one wanted a year. I could have taken my purchase / rehab proposal to the bank for a 30 year with a construction loan on the front side and conversion on the back. You are right. By the time I got the rehab done, rental in place, and started shopping again, the six months came around quickly. 

Thank you I am signed up.  

I liked all the ones mentioned so far but one really made a big difference for me. 

@Arianne L.Podcast 233: 15 Deals in the First 18 Months with Arianne Lemire ( about the "why")

I just didn't have a pinpoint focus on my motivation. This got me back on track. Her whole story makes you look beyond deal hunting and making money.  I wish I heard this 20 years ago. Thanks @Arianne L. and BP

Is this an open get together. Are there any speeches or pitches?