All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1796 times.
Post: Looking for rough Insurance Estimates
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Daniella Steinberg, call a local insurance company and ask for a quote.
Post: Management Company in Brooklyn, NY
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Jordan Levine not sure about their specific local, but Adam Jernow of Wayfinder PM does work in the boros. How many units is the property?
Post: Purchasing commercial property with no down payment
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Michael Williams, you can also try to raise equity partners. But they will want to see you have some skin in the game.
Post: How does a 1031 Exchange work with a VA Loan?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Marc Estepa:
Hello! I'm curious how a 1031 Exchange works. What are the ins and outs of doing one? I have a property that I purchased years ago with a VA loan before I found bigger pockets. Knowing what I know now, that property is simply bleeding me of money. Running the numbers, I simply need to sell the home, but listening to an old BP podcast, someone had brought up a 1031 Exchange. My initial plan was to sell the home, and use those funds to help fund an investment property. How does the 1031 Exchange work?
My understanding is that you can use it toward another home and pay taxes on that later. I'm sure I'm oversimplifying it, but based off my intent, how can I use this to my advantage or is this even feasible? Does it make sense to sell or do a 1031 Exchange instead?
Bottom line: I want to get rid of this house in my portfolio and invest in a different property out of state. Whether I use the money from this sale toward another investment property or do a 1031 Exchange, I'm open to it. Also, because this property was purchased through a VA loan, does this complicate things? If I do a 1031 Exchange toward another property, is my VA loan still tied up? Ideally, I'd like to free up my VA loan as well!! Thanks in advance!
Marc, has the property appreciated? How long has this been a rental property? If it hasn't appreciated, there is no need to 1031, as a 1031 only protects gains. If it has been a rental property for at least a year, you can 1031. If you have been living in it for 2 of the last 5 years, you can sell it and not pay capital gains without doing a 1031 due to Section 121 of the IRS Code. Happy to discuss more offline if you'd like.
Post: Need a place to invest $500k
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Dan Engberson he should look into a 1031 into a NNN property. There are no landlord obligations. You can find bite size Starbucks, or Dollar General stores that are backed by a corporate guarantee.
If the $500k is what he clears without a mortgage, that will allow him to buy a property up to $1.5MM approx. There are plenty of brokers that specialize in that area. Always open to chat further if you'd like.
Post: Are we suppose to pay upfront fees to private lenders?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Teresa Williams, some private lenders will 100% charge fees. But they will be paid at the closing table.
NEVER PAY FEES BEFORE THE CLOSING!!!!! (I may get this in tattoo form)
Post: 1st Home Flip, To sell or not to sell?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Morgan Price if you have been living in the home, you do not to 1031, as the IRS offers a Section 121 exclusion for gains when living in a home for 2 of the last 5 years.
Also, what could you get for rent from the property? If you can rent it out, and defer some of the additional work for a little bit, you could pull some equity out.
Post: Why arnt places more landlord friendly
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
"Law makers are generally not landlords so they don't know what it is really like." @Carl C., spot on. And when they do take control, they embody slumlords, just take a look at NYCHA. YEESH!
Post: What About New York City?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Jonathan Chan:
Good morning all. I've been reading a lot of articles saying that people are fleeing the cities cheaper places to live. Properties in NYC are discounted 20-30%. I was just curious what your thoughts were on investing in NYC.
If you can afford to buy, and at low returns, it's probably a good time to buy in NYC.
Post: Financing that allows for asset protection
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Mark Surdam:
This is the explanation I received from my banker- Thanks, Mark. The issue on the residential side is that our investors will not give us funding for an investment property that's in an LLC. It has to be owned personally. Thus, it becomes an in house commercial loan.
Mark, I'm confused. You have outside investors that require your property be held in your name? That makes no sense, unless you meant you lenders. I used an upstate bank that let me put an investment property in an LLC under their residential loan program. I did need to have 25% and got a slightly worse rate, but it was worth it. What bank are you using and what are the properties? (SFH, Duplex, etc.)