All Forum Posts by: Scott Wolf

@Chris Semklo, as per usual @Dave Foster makes a great point. They need to be setup with a completely separate entity to run the 1031 exchange.  Unless you're dealing with a nationally backed firm, everything may not be kosher.

Good luck!

@Matthew Holland as mentioned above it is too late for a 1031.  

One thing that has been glazed over is if this is your business model moving forward.  If you buy at foreclosure and sell a few months later, you may not be able to 1031 anyway due to the short hold time, and intent to 'flip'.  Happy to discuss further if you'd like.

@DJ Dawson & @Joe Bertolino thanks for the replies.

I'm currently undertaking something similar in NYC, and here 26% annual interest is usury.  My lawyer had to structure the deal very carefully to make sure that I was not in violation of any laws, even in second position.  It's a very interesting space and something I'm trying to learn more about.

@Ralph Pombo, a local lender or smaller bank (think M&T) is most likely to provide a portfolio loan.  Other firms like Lima One Capital, RCN or similar will also provide them at worse rates.

Joe, Rich or DJ. That sounds too good to be true to me.  10% in 90 days?  That's 40% interest on an annual basis, and in NY would put me in usury territory.  I'd love to know how you get around that?

 Jim, you missed the part where the house was empty when they started renovations.  Meaning a squatter with a machete moved into the attic.

@Brandon Leffler, if you can get out with no capital gains, I'd take that money and deploy it elsewhere.  You're current ROE is 4.5%, or you can try to get a cash out refinance.  You need to run the numbers, talk to a CPA to make sure there is no capital gains, and do what's best for you and your goals.

@Steven Cramer, you should probably form a LLC, as it will be a partnership.

Additionally, you can not 1031 a flip.  Profits from a flip are tax as regular income.  Also, you should connect with @Alex Uman he has a lot of product in the Philly area.

@Angelica Rivera you could also look into a Delaware Statutory Trust(DST). Many people use 1031 to exchange into a DST as it is a more passive investment.

How much appreciation have you seen, and who suggested doing a 1031?

@Bryan Benavides, you should buy it with the 203k loan, I'm not even sure you can refinance into one.

Check out @Matthew Porcaro and his Instagram, The203kWay.  You'll learn a boatload from it.