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Updated about 1 year ago on . Most recent reply

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Dylan Willbanks
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Most bang for my buck

Dylan Willbanks
Posted

So I'm a 22 year old investor just starting out I started flipping my first house this year and I plan on being finished with it in a month or two and I've been looking at how to invest my profits for the most return on investment, I'm leaning towards seller financing vacant properties and master lease options but I want to get another opinion, so if anyone has any suggestions I'd be glad to hear it.

ps. I'm leaning towards seller financing because my credit history is too short to get as many properties as I want to get this year.

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Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
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Dave Foster
#1 1031 Exchanges Contributor
  • Qualified Intermediary for 1031 Exchanges
  • St. Petersburg, FL
Replied

@Dylan Willbanks, A lender slowing you down a little might not be the worst thing.  To avoid the high tax bill on a flip property a lot of our clients will buy rehab and then rent.  After going that far you're probably in a position to refinance it and pull cash out for your next deal.  But you still haven't paid a penny in tax.  All of the potential tax is working for you.

After a time you may want to sell the original property.  When you do sell you'll do a 1031 exchange and be able to keep all of the tax working for you.

  • Dave Foster
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The 1031 Investor
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