All Forum Posts by: Ryan Thomas

Hi Shawn,

Check out this link, http://apiexchange.com/index_main.php?id=8&idz=117 ,it is a calculator which will help you calculate your capital gains.

This should give you a good idea, but you may want to reach out to your accountant and have him tell you what kind of tax consequence you would have when selling.

If you want to reinvest in a SFR that you are going to use as an investment, you may want to look into a 1031 exchange. There are tons of threads on BP about exchanges.

Good luck.

Hi Dan,

Although you do not "need" an attorney, you should always discuss these transactions with your legal / tax advisors, as the Qualified Intermediary you work with will not be giving any tax/legal advice.

The fees are actually very reasonable, so long you are not doing a reverse or improvement exchange. A standard delayed exchange (when you sell first then acquire replacement properties thereafter) will typically cost around $1000 for the entire transaction.

Bigger Pockets has a 1031 page

http://www.biggerpockets.com/rei/guide-1031-exchanges/

Be sure to do you own due diligence on the QI you work with, as they are not federally regulated.

I know about Suffolk County tax liens. You can PM me and i'd be happy to see if I can answer your questions.

Hi Dan,

I haven't been to any REIA's out there and am not sure if there are any.

I do go to some networking events, but they are mostly during the summer. There is a good one at Dockers in East Quogue.

It is also possible for her to 1031 and include the note in the exchange. She would need to figure out a way to liquidate the note during the exchange. Typically, the exchanger would buy the note back from the QI. Now, she would have the note which she could collect on with a decent interest rate, and she could buy some new investment property, which would make her a return. If she doesn't want to manage herself, there are plenty of options out their for her replacement properties where there is no management required, primarily DSTs (Delaware Statutory Trusts).

Hi Dmitriy - I believe @Darren Sager would probably have some input on this for you.

I am on Long Island and I think it would be pretty hard to find a two-family in your buget, but not impossible.

Good luck.

Hi Craig - I am licenced in NY. IMO, the test is basically common sense. You should have no issues, just don't overthink it.

As to meeting brokers, I would suggest the following. Work for/with someone who will actually train you on how to get a steady flow of deals. There are a lot of brokers out there who just want to sign up new agents in order to get a cut of a few commissions from their family/friends. If at all possible, work for a non-competing broker.

Good luck!

Marian - A $1000 total is a very resonable price, and most will split the fee between the sale and purchase, so if you do not end up identifying, you are only spending a portion of the fee.

A GOOD QI will answer all of your questions, explain the process, and explain the tax code, prepare the exchange agreement and other necessary documents as per the IRS regs, setup an account for your exchange funds, have security measures in place to be sure your funds are secure, prepare exchange documents for your purchase, review your closing statements to be sure there are no items that may cause you a tax consequence, fund your closing, keep you updated through the exchange with account statements.

Most importantly they will be bonded, insured and know what they are doing.

Ravi - You can purchase multiple properties within the same exchange. Let's say you have $400K, buy 4 properites with $100K down (25% DP) and work it that way. It can be difficult to sell/aquire multiple properties within the strict timeframes, but with good planning it can (and is) done all the time.

You could always go the route you have referenced above, but I guess you would want to compare the costs of refi vs. taking a loan at the purchase.

I have a client in this same dilema (had this phone call just this morning.

I would think if it is recorded against the property, it would need to be paid off at closing in order to deliver clear title to the new buyer. I would assume this would create a tax consequence for "Al". Is there a way to assign the mortgage to a different property?

If it is NOT recorded against the property (which sounds crazy but you would be surprised how often there is a note but no mortgage), then I do not know if there is an issue.

The cliens attorneys and accounts are trying to figure out a way around it, if they do, I will follow up here with a post.

Did Al do an exchange when he sold the property to Josh? If so, he could have defferred the capital gains on the note at that time.