All Forum Posts by: Stephen Fryer

Hey @Kyle Wilkins.

Lots of value in South Bend, with opportunities for cash flow at a reasonable price. And now with the train it will be even closer.

Hi @Lin He.

Couldn't disagree with you more. I live in Ottawa, Canada and invest in South Bend IN. Market here in Ottawa is similar to CoCal. 3-4% CAP rates. Very hard to find value or cash flow. If I only did deals in my back yard, I wouldn't have done 4 fix and flips last year and added 5 doors to my portfolio. Everyone has their own risk tolerance.

@Eric Geers. Investing in real estate is all about relationships. Whether you are in your back yard or another state. Take some time to establish relationships with agents, contractors and property managers in your market. They will be the keys to your success. Leverage technology to stay on top of things. Feel free to connect with me directly if you need any suggestions or support.

HI @Stephen Sokolow and @Joel Florek

I struggled with the same issue. As an investor, we can defer capital gains with a 1031 exchange. I would have to compare and contrast the criteria to see if there is a significant benefit and haven't really had a chance to do that yet.

Perhaps the real opportunity is to appreciation. If there are other businesses investing in these zones, then there may be a chance to change the fundamental economics of the area and improve house values long term.

HI @Tim Johnson. Which lender are you using to do your deals. Can you share?

HI @Brian Horwitz.

I work closely with Jen Arizmendi at Addresses Unlimited. Her entire clientele is made up of investors and she is a great resource. As an out of state/country investor, I rely on Jen to be my boots on the ground. I will pm you with her contact info.

Hi @Joel Florek.

Here is the link to the IRS FAQ.

https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions

At a high level, my understanding is the Opportunity Zones program provides a tax incentive for investors to re-invest capital gains into low income communities through an Opportunity Fund. There is a permanent exclusion from capital gains from the sale of an investment in an Opportunity Fund if the investment is held for at least 10 years. If held for 5 years or 7 years, you can obtain deferral of 5% and 10% respectively.  

Interesting conversation @Stephen Sokolow and @Joel Florek. What are your thoughts about the Opportunity Zones, now that the IRS has defined the benefits.

Thanks for helping to clarify @Sean Graham. Perfectly clear now.

Great insights @Andrew Postell and @Alexander Felice. Love the refinancing twist to improve your returns even further.

Knowing that you can actually make an additional $11,500 on the deal, could someone use their self directed 401 K to lend their LLC the money? That way you could actually charge an interest rate, use the additional funds to pay it off and have the money accrue tax free?

Hi Everyone. I have a bundle of properties under contract at a significant discount,  15 SFRs, all of which have been recently renovated and are presently tenanted. ARV is at $679,000. Looking for $274,000 (40 of ARV). Interest only loan with balloon in one year.