All Forum Posts by: Alain Labrada

Hi @Joe Bourguignon

I don't think you can be on the note if only your friend was on the disposed property note, hi is the "owner" of the 1031 exchange funds.

The purpose of a 1031 exchange, from the IRS point of view, is to allow you to transfer debt and equity from one investment property to one or more investment properties and this way you avoid paying Capital Gain taxes. 

If the replacement property is only under your name, it can be consider a gift from your friend to you and that will be taxed.

I would look for advise from a CPA before doing this.

Thanks

Thanks @Jack Inman, that is a good idea.

Hi BP community, I need your help.

I live in Miami but all my rental properties are located in Jacksonville. I'm fortunate to work with a local Agent that is just incredible, all our transactions have been smooth and on-time, not a single issue. I'm in at a point where I want my next move to be doing a BRRRR and I want my agent to also be like my Project Manager, but I need to come up with an idea on how to structure this.

Basically I want her to be very involve and to have “skin in the game”. I have been thinking on how to compensate her based on the results of every project.

One idea is to pay her by the hours she put on meeting with the GC, inspecting how job, etc.

Another idea is to define a percentage of the Net Profit that will be her compensation. Something like 10% or 20%

I know this will be an added expense, but I just cannot do it with having someone I trust representing my interest there.

Please, let me know your opinion and feel free to throw here any idea.

Thanks!!!

Congratulations and welcome!!

@James Palassis, 

I'm trying to learn so I ask a lot of questions. 

Can you explain to me the refinancing part? Are you refinancing a loan of $50,000 only? If this is the case, your plan is to pay back part of the HELOC with the 50k and the rest with the monthly cash flow? Why you did not refinance for an amount that will let you pay off the HELOC entirely? Is it because by doing that you won't have any cash flow?

Thanks!

Welcome to the REI world!

I'm genuinely curious, why did you formed an LLC? For what I have read, is harder to get a back to finance an LLC for an Investment property than an individual.

Hi Brett,

Let me start by saying the I haven't done that myself ever, I'm also new in REI. However, I have been reading about this same topic because I'm also looking at a way to finance my next property.

Why would you pay cash for only one 150k property when you could buy 3? The total cost of buying a 150k property is around 40k (20% down + closing costs) Whatever cash flow you calculated will the triple with 3 properties.

@Andrew Kougl,

Now that you ask, I re-ran my numbers. This is the exact reason why I came to BP, to learn. :-)

The $400 is including PITI without factoring reserves.

If I add a 10% vacancy/repair reserve the CoC is $200 for 2 properties and $300 for the third. This are estimates with a conservative rental price (I'm still on the process of purchasing and we should close in 20 - 30 days)

Hi @Kevin Kwiatek,

I'm still on that process. We closed the sell few days ago. Already have the 3 new properties and we are supposed to close in about 30 days.

Yes, some of the rules are that the total debt of the new properties have to be equal or greater that the debt on the property sold. Also, the combined purchase price have to equal or higher than the sell price.

There are more rules, like the 200% rule.