All Forum Posts by: Yonah Weiss

@Ben S. I definitely agree with @Christie Ellis about the amazing benefits of cost seg, especially when doing rehab. An expert cos seg provider will do a cost seg study taking the depreciable basis of the purchase, accelerate the depreciation of 5 and 15 year property, then write off everything you replace in the rehab, and do another cost seg upon completion, doubling your tax savings.

In terms of bridge -loans for this type of project, you may have to submit to high interest rates in order to make it happen. What is the overall cost that you are looking to finance?

 Dave I can highly recommend @Daniel Hyman - My Online Accountant, LLC well versed in real estate.

Ben, when you include closing costs you are looking to find around 90% LTV. It is difficult to find HML at 90% LTV at all, and those who will, generally expect it to come out to 65-70% ARV, and charge much higher rates. What is the expected ARV once you finish the rehab?

If you can refi after rehab and rented-out, with a conventional loan after 3-6 months, then the HML may be worth it. Otherwise, the numbers just don't make sense. Check out the new rehab calculator.

 I can recommend Izzy Zuber, CPA in Brookline. Very knowledgeable in real estate, and very honest.  Two-person operation, not some big firm who doesn't remember your name. Best of luck Daniel

If anyone is still looking I used a great HML in NJ 12% +2pts. Very smooth process.

I learn so much more hands-on, and apprenticing those with much more experience. To me, it's time much more well spent than any class i ever took. I don't think my BA in History helped much in my REI either.

Thanks Chris. That change in bonus depreciation could be very significant.

There are a number of online HML platforms that are offering 8-18% ROI with varying risk. You get the benefits of HML, while being a passive investor.

 Thanks for the clarity Jon. So this actually does have big implications for investors or companies who are accelerating depreciation on personal property ('5-year property' or sec. 179 property) through cost segregation. Would this apply to a purchase of a large commercial property? My impression was it does.

 I have heard a lot of discussion about it, but nothing in black an white. I have seen many articles written on different platform (e.g. https://www.realized1031.com/blog/digging-deep-int...). I can't say I am relying on communicated content, but I still haven't heard anything authoritative.

Thank you Jon for attaching the link to the 'Tax Cuts and Jobs Act', I did notice in the table of contents 'Sec.3201: Expansion of section 179 expensing.' Which clearly is in reference to property depreciation; However, I haven't yet had the time to read the Act. 

I would appreciate if any other tax experts may be able to shed light on the confusion.