All Forum Posts by: Alex S.

I am looking for 1031 candidates for newer construction for long term rentals Price point max 365k per property. Which Cities would you recommend?

I am exploring note funds. When I look at the PPM and Operating agreements its gets difficult to understand and know what to look for. Can anyone point me in the right direction? Or is this more of an Attorney/Investment advisor that is familiar with alternative investments?

Has anyone converted their Long term rentals to short term?  I have heard of sorties of income significantly increases when done properly?

Are there short term rental managers ( airbnb, vrbo) What is the range in fees they charge for management. 

Which vendor do you use to furnish the place?

When you sell a property seller financing via interest only loan. Do you still have to pay taxes on installment sale being that you are not getting any of you principle back yet?  Assume pay taxes on deposit portion?

What is best way to structure these to minimize capital gains taxes and recapture.

1031 exchange into new construction.

Any cavaets to consider when selling older investment property into new constructions via 1031 exchange?

Are the exchange fees higher for new construction?

@Chris Seveney 

Thanks for your reply. Are you doing most of our JV in or outside of tax deferred accounts?

Alex

Thanks George,

Any  statetgies, negatives or risks to avoid for having a partner in secured trust deed and notes inside sole 401k?

The one thing that come to mind might be to have majority stake of note to have decision making rights in the event of work out.

Thank you Dimitriy. That answers my questions. Sounds like need to find partner who is not considered disqualified.  

 Any negatives or risks to avoid  for having a partner in trust deed and notes inside sole 401k? 

Question.

To purchase notes or trust deeds. Can I combine funds from my solo 401k ( tax deferred funds) and regular account.

Example note purchase of 150k 

use 100k from solo 401k and 50k from regular account for total of 150k . So there are two partials and you own both in different accounts. The note is owned by two separate accounts.

Would this be considered something that would disqualify the transaction in the tax deferred account? Does the tax differed account have to own the entire note? 

Please advise.

Alex

It depends. Do you like your job? You can put money aside and invest it for 5 years. What rate of return would you get.  You can decide later. I like having a mix of real estate, notes, and Stocks that pay dividends( and increase). I also do it strategically to minimize taxes.

How will it affect your taxes. How much debt based on total net worth. Look at your debt to equtiy and manage risk. I have seen too many people make a bunch and give it all back by to much leverage. 

My personal opinion is market is high here. Have no idea when it will shift or what will cause it. Higher interest rates might. Perhaps 1031 tax law change. Not sure

Then you might be able to get higher rate return on cash. I like the idea of fucus on one property at a time rather than scatter on multiple properties to get it paid off.

Hope that helps.

To your success,

Alex