All Forum Posts by: Amby Bhagtani

You just use a quit claim deed. In my county it's a one page form, takes about 2 minutes to fill out and they charge $15.

However, limiting your liability is much more complicated than simply dumping a property in to an LLC. Make sure you understand the pros and cons of what you are doing and if you are actually accomplishing the goal you are attempting to accomplish.

Hello! I've learned so much on BP, mostly from lurking over the last few years as I prepare to shift full time to RE. I'm curious to tap the brain trust here on any angles I may not have considered. Would love to hear your thoughts or strategies if you were in my shoes. 

I am 40, a creative director burnt out on the advertising industry, and ready to do construction/RE/rentals full time. I think the world needs more homes, and I want to be more involved in providing people a place to live. I believe builders and landlords do the country a service. 

My question: What's my best angle to dive into RE, given my skills and assets? I have the sense that I have a lot of good building blocks to work with, and I have some strategies I'm considering (like build and hold), but I would love the thoughts of the community. 

My goal:

Net worth of $10M, or $30k net monthly income.  I think this is a modest goal, in this day and age. 

What I have to work with: 

- An LLC (currently just run STR taxes through this)

- A Type S Corp (I run my ad business through this, but will shift it over to construction)

- A General Contractors license in the state of Oregon, tied to Type S Corp (have had and maintained since July of 2022)

- A construction skillset. Have built a couple dozen homes since my early 20's, on the side as specs and for us personally. I have tools for everything from concrete forms to finish carpentry.  

- Two homes: a primary residence and second home that we STR most of the year when we're not there. Both in Oregon. One worth $600k, one worth $400k. Combined debt on them is $394k.

- A $300k HELOC on the second home, at prime + 3% with a 20 year draw period. Balance $0. Just closed on this, and it's the final piece in my plan for a career shift.

How would you reach my goal, if you were me, starting with these tools and experience? I guess I'm hoping for ideas other than "use the HELOC to finance construction of a spec house, rinse and repeat."

Sorry this post is so long, no need to reply unless it's interesting or a fun thought experiment for you. TIA, and thanks so much to this community for the generous sharing of knowledge. One of my favorite places on the internet for keeping it real. 

Would you keep for the long term or sell this property?

- Purchased a 1960's vintage building, 18 units, in 2017 for $1.5M
- In a major urban city in the northeast
- Put $400K down and have paid down $100K in loan (so the balance is $1M)
- Purchased it to supplement my 9 - 5 and use it as a resource of income to retire (15 20 years from now)
- It's comprised of studios, 1 bedrooms and 2 bedrooms.  General square footage is on the small side.
- It barely squeezes out any money per month.  In its best year, 2023 it cash flowed $3,000 a month before increase in property tax and utilities have squandered it down to maybe $1,500.  Moderate rent bump this year has prevented it from going down any further.
- It's been well kept
- Between transaction costs (e.g. broker fees, transfer fees), capital expenses, tax recapture I would need to sell it for $1.9M to break even.
-  At it's height (2022), it could have sold for but $2.7M.  Now it could sell for $2.1M.
- Would you sell for a gross profit of $300K or keep it, with a cash flow of about $1,500 a month? 
- I haven't been able to find any 1031 opportunities (buildings or otherwise) to roll the money into

I appreciate learning your thoughts on whether to sell and keep.

I have a couple doors in Memphis. I wouldn't consider myself an expert but I would be happy to connect and knowledge with anyone interested.