All Forum Posts by: Scott Johnson

Buy >> Exchange >> Due. The ideal formula for tax free wealth growth... I'm making that video!

@James Hamling there's no false narrative, only the omission of 1031's role. 

You narrative requires one critical factor. Selling the property. I'd one didn't, then they simply needed to eventually perform God's will to make all gains completely tax freed. Die 🤷🏻 

I may have missed this in someone's response above, but there is one thing I am not seeing that is extremely important and most of the time gets overlooked.

Cash Flow and Appreciation are TAXED. 

Cash Out Refinancing (Loan Paydown) is TAX FREE

Depreciation OFFSETS CASHFLOW to make it tax free if Depreciation is higher than your annual cash flow.

Best way to maximize depreciation? Condominimums and Townhomes. Little to no land and all improvement. This means the cost is fully depreciable. They just so happen to also have HOA Dues which help to keep cashflow lower.

Just find a property you can do a 10-20 year loan on. Pays down faster. More tax free money.

A VA loan is a good play, but it needs to be considered a residential property, unless someone understands more than me on the commercial side and knows a way to use a VA loan for a commercial property.

That means that you can buy a property with up to four units, since this is still considered residential. Why is it considered residential? Because Fannie and Freddie will buy the loan, meaning the loan could be originated by a lender and immediately be sold to Fannie and Freddie. 

Commercial loans are usually held on the books of the originating bank. A lot of smaller banks will do this.

If there is not a Four Plex in your area, start educating yourself on how to build one. VA Loans can be used for that as well.

Hey! I guess I have to understand what you mean by a deal tracker first 😅

Blue state. Yuck. Those don't sound too positive. I'd talk to your broker on what it'll sell for after the fact and where the market is heading over the time you plan to own it. 

Won't be perfect, but if its a dying city they landlord don't want to be in, you need to know.

@Patrick Roberts a buddy of mine has used iFundCities for two flips. Seemed to have a good experience with them. Not sure about the new build side.

My thought? Use Real Estate By the Numbers as your guide, make sure it tracks the loan pay down and depreciation and have all of those numbers pour into a Schedule E.

What's up, brother! You're in Greenville too? We should grab coffee sometime 😄

It all depends. Can you give us any specifics regarding the oriwotu and loan? Possibly why you're looking to refinance? An LLC is just a body without a soul. If that LLC can qualify for the loan, it should be able to be refinanced. Unless there's an unknown factor that I don't know about 🤔

I'm reaching deep into my psychic thoughts… I see it… A majority of people who respond to this post will be real estate brokers… I can see it!