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All Forum Posts by: Andrew Butler

Andrew Butler has started 5 posts and replied 15 times.

Post: 1031 Tax Debt Question

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Thank you for the info, I appreciate it!

Post: 1031 Tax Debt Question

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

@Dave Foster

Do you by chance know the calculation to find the exact amount needed to enter 2 separately leveraged replacement properties with different LTVs?

I have a situation of a relinquish property having 1.3 million in equity with an LTV of 54% (the debt portion is 54% to be clear), and want to invest into two separate replacement properties. The one I'd like as much of the funds to roll into has a lower LTV of 38% so I need to pair it with a higher LTV (which has 73% LTV).

Other than easy trial and error to eventually get to the right mix, do you know how to get the exact amount necessary into each one in one simple move? 

I appreciate your help! Thank you!

Post: How to start a Qualified Intermediary?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Thanks for your response @Dave Foster.

That is a really good point that i totally spaced with this idea. Just to throw out some more details to see if you have any thoughts...

So I'm not a realtor and won't be on the "transaction side of the sale of the relinquished property". I'm a registered representative with a securities 7 license, so everything i do is done as a security. For 1031 replacement properties I line up investors with different DST and (rarely) TIC type properties.

Any thoughts? I appreciate your help.

It seems like lots of title companies out there have an internal QI. Do you know how they get away with it? 

Thanks again,

Andrew

Post: How to start a Qualified Intermediary?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Hello everyone! 

I was wondering if anyone had any insight on starting a 1031 Qualified Intermediary business. I have worked in the 1031 space doing commercial replacement properties for about 12, but am now looking to set up a QI as per requests of a lot of my clients. There are a few QI's that I have worked with a lot in the pass who have given me their QI docs to take a look at, but out of respect, i'd rather not hound them on all the aspect of running a QI since i will no longer be sending them referrals, and in fact, will be coming their competition. I've never been on that side of the table so i'd love any insight someone could give me, or would love it if anyone could direct me in a direction to get started. 

Thanks, Andrew

Post: Do you pay taxes on your Buy & Hold Property?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2
Jim Kennedy really great response. Can you enlighten us on what would make an individual qualify as a real estate professional and the perks which follow for tax purposes? Thanks in advance. (New investor)

Post: 1% guideline exceptions?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Thank you all very much. @Rebecca Belnap and @Amy Kendall, you guys are awesome for your input and replies. I really appreciate the advice. 

Post: 1% guideline exceptions?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Awesome, thanks @Jacob Cogswell. I'll look into those. In our local areas do you see a market that can follow the 1% or 50% guidelines? Or do you just strictly look at the numbers on each deal and see if they cashflow after netting everything out?

Post: 1% guideline exceptions?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Thank you @Ned Carey, @Jacob Cogswell, and @Russell Brazil for your replies and advice. I really appreciate it. It is nerve-racking and overwhelming trying to vet deals and decide where to even start looking. 

I've glance at a few new developments where younger families are moving and renting, but they all have HOA of $200 plus which seems like would kill you profits when you get hit with periods with vacancies. And those would barely cashflow positive after the debt service (aka not adding to an account to account for vacancies and the capex). Perhaps that's just a bad place to even be considering starting.

My long term goal is not necessary cash flow, (at least in the next 5-10 years) but to build a portfolio that will sustain it's self. i.e. i'm not throwing cash into it every month (i'd also like a property manager for my properties eventually when i scale) so I need to account for that also. 

Post: 1% guideline exceptions?

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

Hello everyone.

I am a new investor and have not done my first deal yet. I'm in the middle of reading the recommended books and going through "literally" all of the bigger pocket podcasts.

I understand the 1% guideline, 50% rule (guideline) etc, but what about in higher price markets and new/ newer construction? 

If i were to purchase a new or newer home (only a few years old) to rent out, which you would expect to have very little capex involved, what numbers would you guys recommend using as a guideline. 

I understand that many would say just look an hour in any direction for a lower priced market, but if you WERE wanting to stay in the higher price/ newer area, any thoughts? 

Where i'm looking (south jordan, herriman, sandy, utah) i'm not finding any new/ new homes that come even close to the 1% guideline or 50% rule. (Could just be a possible indicator that prices are too high?) I'd "like" to start getting into some longterm holds while interest rates are still low, and before the fed raises more this year, but i also don't want to overpay. 

Thanks in advance. 

Andrew

Post: rule of thumb for starting out numbers. Help needed.

Andrew ButlerPosted
  • Real Estate Professional
  • South Jordan, UT
  • Posts 22
  • Votes 2

@Tom Cafarella Awesome. Makes perfect sense. Thanks again for your input.