New member From NC

[Glenn R.]

Hello,

I live near Boone & also spend a lot of time in Cornelius.  I'm here to learn about real estate because it seems like a tangible investment that I can understand.  Real estate is a very big part of the local economies of both Boone & Cornelius.   I have seen family and friends benefit from both long term holdings on the lake, and from income generating rentals in the mountains.  

I built our home in the mountains, and enjoy the hands on projects that increase the charm and value of a home.  So, I can see myself flipping some properties if I run across the right deals, or perhaps building some homes on the lake.   I like the cash flow aspect of owning rentals.

I'm not in the position to act on anything today, but have some time read and learn.  I want to get a general understanding about the various way to invest in real estate, so when I am ready I will have a number of options to choose from depending on the market, my assets, and what I find appealing then.

If you're local to Boone or LKN maybe we'll meet over a deal, or a beer sometime.  ;)

[Dave Foster]

@Glenn R., If you're just wanting to flip. 1031s not only will not provide cash for your family but they are not allowable. Your intent in purchasing the properties you eventually 1031 must be to hold for productive use in investment. That guru did pay tax and a lot of it. If your intent in buying a piece of property is primarily to resell it then you can't 1031 and you pay ordinary income tax which probably included SE tax and Obama care tax - could be as much a 40% of his profit.

The best way to use 1031s is to think of them as your portfolio builder.  You "feed the family" from one of two sources

1. Tapping equity while the portfolio builds.  Do 1031s and put the deferred tax into more real estate but then refi and pull necessary cash for reinvestment or living.

2. Once the portfolio is large enough you live of the cash flow leaving equity for portfolio building - but always tax deferred inside the 1031s.