All Forum Posts by: Tony Tran

Definitely true. A reserve fund is as important as the liquidity of the fund. 

I've heard people use their savings as the "additional fund". This is a no-no in my book. A account strictly for the unforeseen is needed!

Tony

@Daniel Raposo Great work!

Moises, I would hold your horses on quitting your day job to be a RE agent. Being a part of RE is not a steady paycheck every week or two. There will be days (maybe months) of no earnings to only a few times of turning a profit through the year.

I would ease into the RE agent role (if that is your passion). That is, to get a RE license, work RE on your off hours (i.e. show homes, marketing, list and sell homes, etc.). If it pans out and the numbers are right, then do it!

I have seen and heard (in my short time) a lot about people just jumping ship from their day job (out of discontent, lack of passion, etc.) and losing a paycheck. Some of which are close to me. A paycheck pays the bills!

Help this perspective helps.

Tony 

Welcome to BP, Mark! 

I live in CA and have not purchase a primary or investment property in my home state. All of my investment are out of state.

Many of my Californian family and friends thought I was crazy for buying anything away from home where I cannot keep an eye on. I ran all the numbers. I looked at the prospects (locals, municipal codes, crime rates, job trends, etc.). I ended with 10 rental units in 2014.

 It can be a bit scary at first (hence the "analysis paralysis"), but once you pull that trigger. Things will be easier. 

Best,

Tony

Hey BP Family,

I want to start off saying how great BP has been to my family and I. You are my second family!

2014 has been (or still is) an impressive year. A lot of up's and down's, but all for moving the chess piece a leap forward:

1. 1. Sold and did an 1031 exchange on the Arizona home.
2. 2. Ended up purchasing 10 rental units and all are cash flowing beautifully and stabled.
3. 3. Estimated appreciation across all the properties is approximately 14% today. COCR is approximately 53%.
4. 4. Lost a partner due to family issue and they needed to move on, but established two additional partners on several existing ventures. 
5. 5. Under contract on a property to get the New Year rolling! :)

I am look forward to seeing what 2015 brings and the best to everyone!

Happy (Early) New Years,

Tony

Hello BP,

I am in need of your infamous brilliance. I am currently going through a 1031 exchange and wanted to ask a few questions about 1031 to understand the scenarios better. Thank you for any help you can provide!

1. I sold the home in my personal name (no one else was in the sale) and the funds were transferred into an exchange escrow account. Would it be possible to team up with another investor and do the exchange? Where the other investor is adding the additional down payment.

2. If the FMV equate to what was sold or greater because of the other investor, would I be subjected to any taxation?

Thank you for your help!

Tony

Hello All,

I am fairly new to how land contract works. I hear it is not to difficult to do between Buyer and Seller. Here is my scenario:

I am looking to sell a property of mine via land contract and the Buyer is willing to put a sizable down payment. Once all the documents are signed:

1. Do I need to file it with the county or anything?

2. How are property taxes paid if the property in still my name (or company's name)? Do I have to do anything differently?

3. How does a land contract affect a home insurance? Do I have to do anything differently to be the insurance binding so they don't flake?

4. Is the down payment received taxed as capital gain?

Thank you,

Tony

@dawn anastasi, do you know what the current rate is?

This is a funny RE video about tenant and landlord that has been floating on FB. Enjoy!

https://www.facebook.com/video/embed?video_id=143496872528217

1. It really depends on your employer if they offer Roth and/or Traditional 401(k). My employer does not offer Roth 401(k). You can set up a Solo 401(k) for your LLC, and have both yours and your employer retirement account at the same time.

2. No, you cannot transfer funds from one account to the next without custodial approval.

3. There is a limit on how much you can contribute yearly. It should be stated in the IRS guidelines. The maximum you can take out as a loan is up to $50k.

Hope that helps.