All Forum Posts by: Annette Homewood

@Dave Foster

@Dave Foster

Annette

Hi, @Sean Ross. Thank you so much for your reply. I appreciate your insight.

I randomly called a 1031 exchange off Google & the man I spoke with also mentioned NNN/TIC's. I guess I could do some more research on these. But what it sounded like to me on first impression is that I would still, ultimately, be the landlord. And even though the leasing business would have liability insurance, I get the impression that that would be one barrier, but something catastrophic could still go wrong & I could be held liable. Furthermore, isn't there still the possibility of broken leases or other possible landlord headaches? Bc I would still be the owner, right? I guess I don't understand the difference between being a landlord & having a manager run a rental, and this.

Annette

Dear Bigger Pockets investors,

I'm no longer wanting to be a landlord & am looking at exit strategies. My profit margins are struggling & the potential liability worries me. My rentals are out-of-state, have management, & are not in the best areas. An advisor told me about Delaware Statutory Trusts. I'm not an accredited investor but he said there are open DST's in which one doesn't have to be a millionaire, & so far he's the only advisor I've come across that has open DST's. Everyone else I've looked up deals with wealthy people only. I believe the minimum investment is still at $100k. Last I spoke with him, he had open DST's offering between 3.75-5.15% in distributions. I'm sure he'll get ongoing commissions - which are "baked in" already. As I mentioned, I don't know of any open DST advisors who will only take a flat fee at my level. But I would be happy if I were getting at least 4%, probably staying in the safer multi-family realm (as opposed to malls, hotels, offices, etc.) I would appreciate any insight anyone has to offer, as I'm trying to figure out my next move. My goal is to have passive income.

What I know about DST's:

They’re illiquid for maybe 5-10 years.

I will defer/1031 my taxes upon sale of my properties.

I will receive equity when the DST sells the properties, which I can then reinvest & continue deferring taxes, should I choose.

I will be able to factor depreciation recapture in my annual taxes.

DST is likely to be higher-class properties.

I will remove my liability & control from being a landlord.

What I don't know:

Will there be surprise fees?

Will there be extra fees cut into my equity upon sale?

Is there anything else I'm not thinking of that I should look out for?

I know everything carries some risk, but is this an overall, generally speaking, good investment? Or is there another avenue I may not know about?

I would appreciate any insights. Thank you in advance. This is kind of an important decision for me.

Annette

Thanks, Anthony. Food for thought . . . .

Thanks for the reply, Kevin. Would subbing count as that 30 days?

Back when I was subbing, I got called in to work every day.

Hello, everyone. Does anyone know of a way I could get a loan that has a  reasonable interest rate for a rental property, being that my income is low, but I have cash in reserves plus properties? Thanks!

I am looking to acquire another rental property and would like funding. I could buy a lower-cost property using cash, but I would like to see if I could somehow get a loan with my low income. I currently have three rentals plus the condo in which I live. I am currently an unemployed teacher, and my income right now comes from unemployment plus rentals. I live in so Cal and am looking anywhere in the country for a deal. I looked into loans a few years ago, and the ones I could get had higher interest rates, and therefore I wouldn't be cash flowing on a property. Advice/tips appreciated!

J. Beard, could you elaborate a little on how I might set up an account wherein the tenants make a direct deposit? How would the PM get paid?

Once I get the property up and running, I plan on being as hands off as is reasonable.

Bill S., I did go ahead and call the Colorado Real Estate Commission, and the guy with whom I spoke did say that for contracts and leasing agreements, a property manager does need a RE license (but not for collecting rent and interacting with tenants). So thank you for guiding me in that direction. He was also able to direct me to more literature on the matter in the CO RE manual on their website.

My mom and I bought the Denver town home in '08 during the depth of the recession. We chose that area because I researched on line cities across the country that had a lot of foreclosures that also had a promising economy. Fannie Mae gave me the foreclosures, and bestplaces.net gave the economic info.