All Forum Posts by: Andrew Merritt

Hello, I purchased a distressed house with the intention of fixing it up.  I've received some good offers on it before it's finished and am planning on selling.  I purchased it in November of 2020.  If I sell in January of 2021, would this be a candidate for a 1031 exchange?

Thanks everybody.  Our goal is to start out small in our local market and test things out.  We're planning on doing several of these and growing them each time.  

We have been speaking with an attorney who specialized in syndications - definitely don't want to do anything against SEC regulations.  

Hey Everyone,

I've got a great mentor that's been helping me out for the past couple of years.  He wants to take the next step and start a syndication with me.  He's got tons of experience, contacts, and access to deals.  He wants me to be the point man: handle day-to-day stuff and pretty much keep things running while he's acting as the face of the business.  I'm super pumped as this will be a great experience and take my investing to then next level.  

He's asked me what kind of cut I'd be looking for in the partnership and I really have no idea.  He's the one with all of the experience (not necessarily in syndications), and I'm more than ok with taking a smaller split, but I also want to make sure it's worth all of the time that I'm going to be putting into this.  Any suggestions on what kind of cut I should request?  

Ok, thanks @Wayne Brooks.  That sounds like my plan of action

Thanks everybody and thank you @John Hyre.  Lots of good info.  

I was passed around to four different people when I called last week. The highest level I got to was a mortgage officer. He seemed to be on my side and said he wouldn't have any issues w/ transferring to an LLC that I own. However, he was not the person to make the decisions on the DoS and said he'd get back to me. I'm not holding my breath.

They haven't reached out to me since they sent the initial letter about 3 weeks ago.  I'm trying to be proactive and get this taken care of but maybe I should stop poking the bear.  I just don't want a surprise letter in a couple of weeks demanding the balance of the loan.

Thanks for the info @Jaysen Medhurst, I'll look into it.

Hello, I have four properties and 10 units. All were purchased in my name. My accountant advised me to set up an LLC for them, so I did. I contacted my lenders to see if it would cause the due on sale clause to be triggered and they said it wouldn't.

Well, it just might for one of the properties at least (each property has a different lender). I got the insurance docs transferred over to the LLC's name, and that's what started everything with the banks. The one lender I'm having an issue w/ said that transferring ownership to an LLC is not a valid transaction and could trigger the due on sale clause. However, if I transferred ownership to a living trust and I remained the occupant, that would be allowed.

It's an investment property and I've never occupied it.  I've responded to them saying as much (via email, they're extremely difficult to get on the phone) and am waiting for a response.  

Does anybody else have experience with this or any ideas on how to proceed?

I spoke with my realtor about this last night and apparently he also does commercial brokering so I'm all set. 

@Frank Chin and @Hadar Orkibi, great recommendations. Getting a couple of NNN commercial tenants in there would be fantastic. I'll reach out and see if I can find a good commercial broker.

Do you know if I'd have to purchase the duplex through the broker, or would I be able to use my residential Realtor?  I'd prefer to stick w/ my Realtor if at all possible; he's helped me out a ton so far and I want to make sure he's rewarded.

@Rick S. not a bad idea.  I'm a little concerned about wear and tear having a bunch of toddlers in there though.

I'm currently interested in purchasing a duplex that returns moderate numbers as a residence.  However, it's zoned commercial and I'm wondering what I should do to take advantage of that (highest and best use)?  Would I get better returns if I placed a business in there?  How would I go about marketing that?  
Probably not the best time right now w/ COVID but I'll wait it out and see what happens.  Just want to be prepared with a good strategy when the time is right.