All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1797 times.
Post: People who Own & Manage: How do you market?
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Wesley Sherow, networking more, sending a mailer, social media marketing, cold calling, or getting a print ad (perhaps NYREJ) are all ways to try to expand your sphere of influence. You should try to learn more from your current clients about who their competition is, and target them.
Post: 1033 exchange question
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Nathan Gesner:
I have to admit, your original post is a little confusing. I can address the 1031 Exchange. When you sell a property, you can do a 1031 Exchange to transfer the proceeds of your sale directly into the purchase of a similar property without paying taxes on those funds. There are strict limitations. You will have to identify up to three possible properties for purchase within 45 days of selling the first property. You have to close on a property within six months.
You also have to use a 1031 Exchange qualified intermediary to hold the funds between transactions and prove they qualify for tax deferment.
I was confused too Nathan but found this helpful article online. Very similar tax shelters, with a much more generous period due to the nature of the "sale" in a 1033. https://www.eaglewmg.com/1033-...
Post: Risks of buying a two family home with an illegal third unit
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Ryan Cleary, happy to connect you to a re lawyer I work with.
Post: Deal Analysis with Screenshots
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Joe Gallo, as @Emmanuel Hirakis & @Bjorn Ahlblad have mentioned, a 3% COC return is not great, so I assume you're looking for appreciation? If you're comfortable with those returns, then go for it, but you could definitely be making better returns elsewhere. Happy to assist with any additional connections as NYC is my primary place of business.
Post: Financing to participate in Auctions
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Eric Betten:
@Scott Wolf
I see, I want to make sure I’m understanding you correctly. It sounds like in order for a property to qualify for a 1031 two criteria’s have to be met:
You must hold the property for a certain amount of time and use said property for investment/cash flow purposes
It must be invested into a similar property. (Multi family for multi family) (single family for multi family will not qualify)
Is that correct? If so I am going to change up my plan/strategy and start looking at multi families as well.
All that being said, if the flip is done under an LLC you can spend your profits on tax deductible expenses just like any other business, is that right?
No, "like-kind" has nothing to do with the property type (MF or SF or Commercial). It has to do with being held for investment.
Yes, any expenses incurred during a flip should be tracked and filed like any other business.
Post: Financing to participate in Auctions
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Eric Betten:
@Scott Wolf
Thanks for the info. I will look into the RE meetups nearby and focus on expanding my network.
I also did not know you cannot 1031 the profit from a flip. Maybe I am misunderstanding or using the wrong term.
From what I was told you are able to use profits from a property to roll into another investment property tax free as long as you find a property within 30 days and close within 90. Is that incorrect? I also live in the state of Massachusetts, may or may not be relevant.
Profit from flipping is considered ordinary income. At the most basic level, a 1031 exchange let's you sell a property held for investment and exchange into a "like-kind" property that will be held for investment, and not pay capital gains on any appreciation. You have 45 days to identify a replacement, and 180 days to complete the transaction. The IRS defines like-kind as: "real estate that is held for productive use in a trade or business or for investment purposes", and unfortunately, flips do not fall into that category.
Post: Financing to participate in Auctions
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Eric Betten, yes it is possible to get hard or private money for an auction, but you need to start making those connections now. Go to local RE meetups, and find investors doing what you're trying to do.
Just an FYI, you cannot 1031 a flip. You can try to BRRRR and make the property you're rehabbing into the cash-flowing property you desire.
Post: Passive Income Options
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Andrew Rosenberg:
@Scott Wolf Integrity was the criteria of the OP, only meant to wish her good luck. I regret that my reply gave the wrong/negative impression about syndications - like anything else just requires vetting. My apologies to any syndicators.
Fair enough, I missed that, despite it being in bold.
Post: Passive Income Options
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
@Tina Thornton, it is very difficult to 1031 into a syndication, things have to be a perfect storm. NNN properties are the typical 1031 path for people looking for passive income. Or you can try to find a DST.
@Andrew Rosenberg, not sure who hurt you, but I know plenty of syndicators with integrity, and who have lined my pockets with good profits.
Post: Just got my real estate license whats the next step?
- Lender
- Boca Raton, FL
- Posts 1,917
- Votes 932
Originally posted by @Mark Abdelmessih:
Hello,
I am in the process of acquiring my real estate salesperson's license in the state of New York. My final exam is in 4 weeks. I had a few questions that I think would really help everyone reading this whether or not you have your license yet don't be afraid to Chime in and leave your feedback.
I am currently interning for an Associate Broker under EXP realty, is there any advice anyone here can give as to what to do next after getting my Realestate license?
get business cards and hand them out, tell all family and friends?
how do I get my business started basically and is there any thing I could do to scale it upwards within the first few months of working.
Mark, if you're going to be working with EXP, lean on them heavily. I think they train up their agents big time. If you're not happy there, start interviewing some other brokerages, and make sure they offer you the training and support you need. When you get your license, you should send a mass branded email to everyone you know, and start posting on your social media about it. Offer to sit other brokers open houses in exchange for getting the buyers who walk in as leads. Or, join a team that's crushing it, and learn all you can. Good luck!