All Forum Posts by: Stephen Murray

Thank you all for the responses.  In doing my own research online you guys are confirming what my understanding has been so far regarding the mobile home exchange and how it works.  

Facts as I understand them:

1. There are 37 units in the park and I've got to find out from the client now if they are all fixed to the land or none of them or if there's a mixture.  

2. For the ones that are not fixed to the land it seems he would need to do one exchange with those as "personal" property for more mobile homes that are not fixed to land and for the ones that are fixed to the land he can include those together with the land in a separate exchange of "real" property for more real property that can be either raw land, SFR, apartements, etc.

3. All of the property is owned by the partnership so the exchanges would need to happen with that partnership as the seller of existing and buyer of the new.  He is fine with purchasing more mobile homes as that is where his experience is, but is open to apartments or something else if the deal is right.

4. Now, after the exchange is completed he will have sold the property in KY and bought new property here in GA where he currently lives.  

5.  Last piece I need to figure out is his end game.  He said he wants to transition this new property to his daughters at some point and wants to eliminate the gain altogether if possible.  My thoughts were that he could pass his partnership interest to his daughters when he passes and then when the other spouse passes the remainder of the partnership interest would pass to the daughters.  The question that needs to be answered is does the step-up in basis apply when they transfer their partnership interests to the daughters, which would eliminate the old gain and any new gains that have been accumulating since the exchange completed.  

6.  Also, since it is a general partnership filing a 1065 when one of the spouses passes I believe the partnership dissolves and the properties may revert back to the surviving spouse having to report directly on the personal tax return.  Still not 100% sure on that without doing further research.

Anyway, it's an interesting case and I appreciate the discussion and help that the BP family has and can provide.  Real estate is so much fun right?  Oh, and BTW....since he's going to be looking to acquire some property in GA we will probably look here first for ideas on what to get in to.  If anyone can point me to someone who has properties in GA like what we are considering please let me know.

Thanks!

Stephen Murray

I own a small accounting firm here in Suwanee GA and my partner and I met with a client today that has a mobile home park in KY that he wants to sell in a 1031 exchange for property down here in GA. He moved to Suwanee and is retired and wants to roll his gain (probably $400-$500K) into a new investment property(ies). End goal for him is to have that gain wiped out through step-up in basis upon transfer to his daughters. Currently the park is owned by a partnership between he and his wife.

We don't have much experience with 1031 exchanges so we are trying to help him with the research on what his options are and what the best strategy will be for him given his long-term goals.

Can anyone recommend a good company that handles these exchanges?  Any advice on doing a 1031 exchange with a mobile home park owned by a partnership?  

Stephen Murray

good evening everyone.  There is a property in my area that is owned by Bank of America.  According to the online records that I've been able to find they've had it since 2012.  It's a sfr 3/2 that looks like it could use some sprucing up but from the outside appears to be in decent shape.  How can I go about trying to acquire it for my first deal?   Not currently listed on the market for sale.  Just was "driving for dollars" and saw this one.  

Thanks for any and all advice.  Can't wait to get this first flip done!

Awesome!  Thank you so much.

Also, are there any threads on BP sorted by area?  Still trying to learn my way around the site...

I'm sure there are, but not sure how to find them.  I guess my first step should be to find a local investment group and start attending those meetings and network like you said.  That seems to be kind of a recurring theme on the podcasts. 

Thanks! 

Good morning...I'm brand new and looking to start my real estate investing career.  I've been listening to the podcasts and I've been trying to figure out what method would be best suited for me to begin with given my situation.  I am currently trying to build my accounting practice with partners, but am not passionate about that business.  My short-term goal (1-2 years) is to earn enough through real-estate investing so that my wife can quit her job and then my next goal would be to replace my current income so that I can sell my part of the practice and focus full-time on real estate.  Looking at 3-5 years for that one.  I want to create a stream of passive income through a rental portfolio, starting out with small houses to figure it out and then transition into multi-family as time progresses.  I also want the chunks of income that flips generate so that I can build up a cash reserve to self-fund my deals at some point.  

Current financial situation is that we don't have any reserves to spare for investing.  No credit cards to be able to draw from either.  That's part of the reason why I want to start to create multiple streams of income for the family....I'm tired of never having any extra.  I've got two kids (15, 17) and as you guys know those ages are pretty expensive and only getting worse.  I need to create more income for the household to help with the stress that is coming that goes with that.  

So, where to get started....that is the question.  I've got a great contact with a hard money lender so if I wanted to do flips I guess I could start with that.  I've thought about just trying to start out as a wholesaler, but it seems like finding the deals for wholesaling are pretty difficult.  I wouldn't mind hooking up with a flipper in my area and having them give me search criteria that they want and me doing the leg work on finding them.  Maybe I should just try and find wholesalers in my area and get properties from them and use my hard money lender contact to start out doing a flip?  Not sure.

Any direction/advice would be greatly appreciated.  Looking forward to this new adventure.  

Hello everyone....I'm tired of sitting on the sidelines.  I've wanted to invest in RE for many years now but just haven't had the guts to get started.  I have a wife and two high school kids and have been really risk averse as we don't have much and it's hard to take risks when you don't have anything to start with.  Looking forward to meeting new people and seeing what I can do in this business.  For my career I have chosen accounting and have recently passed all 4 parts of the CPA exam.  In my years as an accountant I have done the books for several real estate investors that do rentals and flips and it was just a constant reminder that I should be doing the same, but just couldn't do it.  Well, now is the time.....so......I welcome any and all advice for me to get going.  

I'm addicted to the podcasts and will be purchasing some of the books that have been referenced as well.  

Thanks!