All Forum Posts by: Trey Read

Hello, 

I'm running into an issue I think the community may be able to help guide me through. 

I recently built a new SFH for the purpose of using it an an investment property.

My construction company runs out of an LLC, and I set an LLC up for the rental property to sit in. All is good there.

Only issue I'm having is when I go to get my cash out refi, the personal Mortgage is much more favorable that a commercial loan...

Is it the end of the world if I operate this SFH as the owner (myself) instead of an LLC owner?

Has anyone ran into this sort of thing in the past?

I am looking for a real estate meetup around the Columbus Ohio area. Prefer one with real investors who I can network with and learn from.

Does anyone have any good experiences with a specific meetup?

Thanks!

@Femi Ibrahim have you tried speaking to the neighbor to possibly purchase some land from him? That is very unfortunate.

@Tj Hines thanks TJ. He really is a great guy and does bring connections and some SFH experience to the table. I truly think he would be a great business partner, just was kind of curious if it made sense to proceed with a partnership with little MFRE experience between the two of us?

@Alina Trigub great advice. Thank you for your response.

@Michael Ealy that’s exactly what I was eluding to with the question. Thanks for the response. I will start networking and reaching out to some potential partners.

Hello BP!

I am trying to decide which direction to go with my initial investment.

I’m 26, I’m 100k liquid and I’m eager to get started.

I’m a full time commercial construction superintendent with some flipping experience but no buy/hold experience.

I expressed my desire to start RE investing in multi families, to a guy I’ve done several side projects for.

A few days later he reached out and wanted to know if I’d be interested in partnering on a deal.

He has a couple small SFHs he rents out (he’s never done a multi family) and he would also be the main source of capital for the deal.

We would be looking mostly in the central Ohio region.

My question is IYO would I be better suited to partner with someone like that, or start smaller with my own capital and be on my own?

Just looking for some shared experiences. Thanks!

@Andrew Yarman

Judith Green is a great realtor in the Newark area.

Also Brittany Perine as well.

I am in a similar situation. I've been in what I would almost call analysis paralysis on deciding which model to pursue.  

I want to jump into a bigger deal, a deal potentially involving syndication. Is that the right direction? is 100k enough to bring to the table for a new investor into a deal? Would it make sense for someone like me to start as a passive investor in a big deal? I would like to be passive but be involved in the deal to learn the ropes; I think that would be fair to assume this wouldnt be a problem. 

I've also considered buying a couple small (2-4) properties. But that doesn't excite me. I want to be involved with big deals.

I feel like "just jump in, network and do a deal" is my mindset but I want some different perspectives from someone who's been there. 

What would you do differently starting out, knowing what you know now?

Where would you look to find investors looking for someone to partner with? 

How do you gauge an investors credibility?

Trey

I recently completed building a house for myself and I’m ready to sell while the market is still warm.

I can prove I’ve lived in it for 14 months.

I’m trying to be creative to minimize my owed capital gains tax upon sale. I do not want to live in the house until the 2 year period is up.

Here’s a couple ideas I have running through my mind:

1). From my understanding, I can write off any improvements to the home that I paid for. Roughly 30k to finish basement walkout area. Is this a legitimized write off? How much would that save me on capital gains?

2). Obtaining a maxed LTV HELOC. I could pull roughly 25k out. This was my main question, if I pull out a HELOC now and then sell the house after, is that money considered for Capital Gains tax since it's technically a debt?

Building costs $199,000

Appraised at $280,000

For simplicity sake, assuming 80k in taxable gain.

If anyone’s had experience/know of a similar situation I would greatly appreciate the help.

Thanks,

Trey