All Forum Posts by: Tyler Kastelberg

@Russell Yee

Russell: Your "Return on Equity" in California is quite poor when compared to other markets. Given your two options: 1) creating a negative annuity or 2) selling the property ... I'd sell!

@Reed Goossens @Marc C. @Christy Wright

Team: I'm looking for a good property manager in NE Kansas City. Potential purchase will be 50+ units.

Reed: Did you find a good operator?

Christy: Who would you recommend?

I'm interested in purchasing a few apartment buildings in North East Kansas City, MO (approx 50 units). What property management firm operates assets of that size best in the neighborhood?

@Chris Mason

Chris: It's too soon to tell. Unfortunately information isn't available with regards to the allowable fund structure. Stay tuned. :)

@Taylor L.

Thanks for letting me speak to your group tonight! Enjoyed getting to know everybody!

@Paige Kelsey

Paige: You're correct, this programs smells like a 1031 exchange. In fact, I've heard some investors call it a 1031 exchange on steroids. The ability to reduce tax liability AND not incur taxes on sale proceeds in the future is a massive benefit. Additionally, the tax deferral is available for any capital gain, not just "like kind" real estate.

The "catch" is that these investments must be through a qualified Opportunity Fund as designated by the Treasury. The steps to create an Opportunity Fund haven't been announced.

@Jim Jackson

Jim: You have "California" investor problems ... lots of equity and no cash.

Refinancing the buildings would still leave you with 3 properties that don't produce cash. Have you considered selling and investing the proceeds in a larger multifamily?

@Tony Hoong @Ashish Acharya @Jay Hinrichs

Quick addition: You must invest through a US Treasury approved "Opportunity Fund" to capture the benefits of this program. As of today (4/17/2018), the process to create an Opportunity Fund hasn't been established. 

To be continued!

@Avery Goodman

Avery: Have you considered utilizing a monetized installment sale or something of the like to defer the taxes? Exchanges can fail for a number of reasons (as you're finding out). If your sale is greater than $500,000, it might be a good option.

@Shak Amir

Shak: Your friend can also consider selling the property as a monetized installment sale or what I call a "simplified" monetized installment sale. There are a few providers in the US and typically have a generous referral program for leads.

Full disclosure: The providers of this service justify a fee on your sale proceeds by facilitating the deferral of taxes on your sale.

This might be a good option for your seller!