All Forum Posts by: Robert Herrera

I will give you my OPINION of this type of investing.

This is just my VIEW on things, and is not to be taken as Professional ADVICE.

401k is not a very well structured vehicle.

You already know you can not leverage your account. 

There are no tax benefits to keeping it in a 401k. Deferred tax is only tax that hasn't happened yet.

There is no legal protection under your 401k if you are sued.

I would start an LLC- and open a bank account with that LLC as the owner of the account. Put your money in that account. Buy a property with that account. You can leverage your credit and money as a Down payment to buy and control a bigger property.

The LLC is your legal protection. If you are sued, they can only get what's owned by the LLC. Not your other Personal accounts and property.

Open a Separate LLC for every property you buy. This keeps them out of lawsuits together.

Property gets to take Deprecation off of your business taxes. These taxes Flow Down to you. You clam them on your personal taxes. The business takes the money, pays the bills, then pays you. You get the positive cashflow as more income to you, and do not increase your Debt/Income. You actually DECREASE your Debt/Income. 

The mortgage belongs to your business, not you, and is a business expense that is written off on taxes of the business.

I am NOT a legal Professional Or CPA. Check with yours to confirm this Information.

You will always have a high tax in FIX and FLIPS. Your Hold time will always be too short no matter how you try and structure it if you want the profits.

1031 exchanges only allow for like kind exchanges Rental/For A Rental-etc. Also you cannot "sell the property" it must go through a trade with someone else looking for a 1031 of mutual benifit. The money can never touch your account if cash is involved, it must be traded with a mediator who handles all money and properties. You will only have 90 days to complete the exchange or it's void. You will be paying fees, mortgage, etc, during this time as well. Also if it doesn't get traded, you have that issue.

Try Lease To Purchase. It's easier and you can differ tax easier. It's a buy and hold strategy with big returns. Large amounts Down from the Tenant/Buyer ($3k-$15K) Tenant pays maintenance, repairs, and all utilities. Read Kris Krohn: Straight Path TO Real Estate. This book will give you the understanding of the different types of Real Estate Investing, Pros/Cons. This includes Fix n Flips, Wholesaling, Traditional Rentals, Lease To Purchase... Etc

3rd property was a contract for Deed. He holds the deed until it is paid in full.

Yes 3 in the Colorado Market. Single family homes. 2 properties are 3br 1ba. 1 property is a 4br/2ba. 

1st property was bought with my fiance's credit/income. She was a Medical Assistant and had always paid her bills on time. FHA Loan to start. About $5k down.

We lease to purchase out, got $5k Down toward the Option to start. Now we gross $1,900/month from that property.

2nd property was an owner finance- I have the Title, He has the Mortgage NOTE. It is in a cheaper area in Colorado. $5k down to purchase.

Lease To purchase out- $2,500 down toward the purchase price. This was the first tenant. They were from out of state and never took possession. They never moved to Colorado. They never contacted me again... So the next person gave me $3K down to move in ($5,500 back total so far) Now gross $900/month on that property

3rd property was a bit rundown. I bought it for $2k down. Tenant pays me $1k down to move in, and gets the cost of repair materials off the purchase price. $700/month Gross Rents.

I am looking at a 4th property now, and could have it done in the next couple of weeks. Maybe looking for investors on this one and future properties.

You can find places for cheap, and rent them out for a week to tourists. Can make huge Cashflow. Seen small places around 100k. No need to be in the center of the city, the islands are only so big

I'm an investor here in Colorado as well. Message me here. I do lease to purchase properties. I know there are deals in Colorado, you just need to know where to look

Hello I am an investor in Colorado. I own 3 properties here and am looking for more. I do lease to purchase method and own 3 single family homes.

I am a Colorado investor myself. I attended the FB seminar as well a while back. Didn't spend the 30k. I use a lease option method and own 3 properties now.

Lease to Purchase your current home. Big down payment, no headaches, your tenants are responsible for all repairs. Cashflow helps pay your new house mortgage. Refinance your current house and use that money to invest in more houses.

Been reading a lot and implementing what I learned from BP and others. Live here in Denver, CO. I am on my 3rd house.