Can't figure out how to get to the next step

[Wayne Sluiter]

Hello everyone, my name is Wayne, I live in Michigan,  and I am a newbie to BP.com.

While a newbie here, I do have some experience in the real estate game.

I have two SFR condos rentals that are doing quite well at approx. 15% ROI.

These were purchased with my self-directed IRA LLc.

I would like to also get started with a non-IRA llc.

I do work a full-time job M-F but it does allow me some flexibility to search for deals.

I have funds for Rehab costs, but not enough cash to make the next purchase and not experienced with obtaining other peoples money for investing.  Someone told me that if you are an investor, YOU WILL ALWAYS RUN OUT OF MONEY!  (This is a statement of fact, not a request for funds - per site guidelines) 

My current strategy is purchase maybe 2-3 flips (one at a time of course) and hopefully 1031 that capital into another rental.  Then repeat the process again.  I also have an interest in Multi-family, but not sure if i am ready for that game just yet.

I don't currently have a mentor and have been working my strategies alone.  At this point i am stuck in "Analysis Paralysis".  My confidence is shaky at best and not sure which steps to take first.  Find the deal then try to find the money?  Can I analyze the deal correctly to get the money?  Do I need to get to know some contractors first?  On and on and on..........

I will be attending a free visit to a local real estate investment club on the 21st, hoping to meet some locals and get myself refocused in a single direction.

So this is my introduction and I am trying to get my name out there to see what feedback and if there are any locals on here that can help me get my head straight.

I welcome all feedback, and look forward to conversing with as many as possible.

[Dave Foster]

@Wayne Sluiter.   Welcome and congratulations on how you're developing your business model.  You'll find a wealth of information here.  One thing I can suggest right now is that your use of the word "flip" and 1031 in the same sentence won't work.  1031 exchanges are only available to investors who purchase property to hold for productive use in business trade or for investment.  Your use of the word "flip" implies that you are purchasing the properties primarily for resale and as such they are not eligible for 1031 exchanges.

There is no statutory holding period or statutory laundry list for how you document your intent.  But the norm is that "flip" means sell and no 1031.  The way for you to overcome this is to purchase those properties with a longer investment intent in mind and then decide later to sell and 1031.

You've hit on a great tax mitigation strategy with investment in your IRA. The 1031 has the same result but for property outside your IRA. Just make sure you view yourself as an investor and can't get tagged with the label of "dealer in real estate".