All Forum Posts by: Andrew Merewitz

@Ashish Acharya

Thank you for that info, that's very helpful!

I am fortunately well above the 150k mark. The option of counting part of the 1031 transaction as passive income is a great option. 

As far as diversifying, I definitely agree. Unfortunately, I don't quite meet the accredited investor qualifications yet, I will in a years time. There's some real estate investor groups here in nyc, but they all require accredited investor status. Also, many of them require 100k, which is more than I'd want to put into one fund at this point (only 27, so though I make a good income, not enough savings to have 100k in multiple ventures). 

I have a comfortable amount in stock market and then a good chunk (40-60k) saved for my first real estate purchase. Hoping to BRRRR and get into 2-3 properties this year then hopefully another 3 next year and go from there.

You're advice about diversifying is definitely good though, I'll make sure to keep that in mind. And yes, as you mentioned, this is complicated and I'll be working with a CPA throughout, thank you!

So I make over 150k in W2 income and should continue that for the foreseeable future. Given that, how can I take advantage from a tax perspective of losses on passive activity from owning rental properties? I imagine that if I was going to sell, at least these first properties, it'd be a 1031 to buy a larger one, which from my understanding you can't deduct carried over losses on since it isn't a taxable event. Thanks for any help!

This was super helpful! I was leaning just LLC initially, and sounds like that's the right way to go. However, I am speaking with a few CPAs in the next week and will definitely get their advice as well.

Are there decent multifamily's in jersey city under $500k?

Originally posted by @Mark Lladas:

Hi Brittany,

I’m a real estate agent, investor, and Jersey City native. There are still few sections of Jersey City where you can acquire multi-family units to live and rent for a reasonable price. If you tell me your range, I can direct you to the right locations.

Looking to connect soon!

All the best,
Mark

I am looking to do BRRRR and will use hard money lending at first. Given this, I am going to be creating an corporation in the state where I will be buying properties (Florida). I am confused if I should be going to S corp route. C corp doesnt look advantageous for me. I am leaning towards just an LLC but not sure if I should then be reporting as a S corp. Any and all advice welcome, thank you!

I live in nyc and will be buying properties to rehab and hold and rent in Jacksonville, FL in next month or so. I'm going to be setting up a LLC to do this with. Is there a reason I should set up LLC in either Florida or NY? I also would like to find a CPA now so I can make sure I'm doing everything right from the beginning to maximize tax breaks, should I look for one local or would it be better to find one from Florida? Does it make a big difference either way?

@Melvin List thanks so much, thats great to know! I'll go that route then to try to get better rates/lower cash needed with personal financing vs corporation (and i'll make sure I have personal umbrella insurance policy as well!)

@Melvin List Thats helpful, thank you. Do you have any more info on those seasoning requirements?

@Andrew Kerr awesome, thanks for the advice, much appreciated!

Originally posted by @Andrew Kerr:

@Andrew Merewitz I have done this two ways. 

The first is use private or hard money to buy & fix-up the property, then place tenants and keep it in my LLC. Then refinance with a portfolio lender.

The second way is the same as above, but then just before you refinance, use a quit claim deed from the LLC to your personal name. Then do a refinance with a convention lender. Make sure to be up front with the lender so they are ok with it, but it is possible as I just did this a few months ago.

Thanks, thats a great approach! Do you mean to be up front with the conventional lender as they may see this as a red flag? or let the hard money lender know up front that this is my intention?