All Forum Posts by: David M.

@Amelia McGee

Short of apprenticing, hire professionals and watch them work. See how they do it ask a few questions, be a useful helper (if you can’t be a useful unprompted helper maybe you should rethink how hands on you want to be). After you watch a few, you hopefully will learn good and bad way to do job. This also means you’ll be able to tell the better ones from the not so good ones by how they work, and not just their results

That being said, some tasks require skill/practice. I joke with my spackler about that. While I taught myself to spackle and he is nice enough to give me pointers, I just can’t “do” what he says. My knife/blade technique just isn’t there. But, that’s a difference between a guy doing it for 25 years and mr “barely weekend warrior” here. Labor costs in NJ are high, but you can find cheaper, quality labor — it’s like trying to find quality properties to flip.

If you can get friendly with some of them, you might even be able to work with them as their helper and save them from bringing a helper.

@Eric Mayer

I’ve heard you either put it into a trust and have it passed to heirs since when your estate passes over the cost basis is raised — that’s what I’ve heard.

The other I’ve heard is to do an installment sale to slowly realize the deferment while still getting interest.

@Mike Chira

Oh, you said in your first post GA (can’t scroll through discussion since on smartphone right now)

@Mike Chira

They do it by being aggressive really. Where abouts are you located? In my area there are flipping investors who do 20+ or 30+ deals a year. With rents having shot up in the past couple of years, imagine if they had brrrr them? Think about how many income producing properties they would have.

@David Seaman

The Metro Real Estate Investment Association, non profit NJ chapter of the National REIA, should be very close to you (depending on your definition of "central Jersey"). They meet once a month.

@Mike Chira

Oh right, 1031 exchange defers capital gains.  So, you basically need to have put the property into rental service is my understanding since you'll have depreciation and keep investor status.  Not only do you have to use all the equity, but the entire value of the property.  So, if you have a loan being satisfied by the sale, you need to bring the equivalent of that loan amount in cash to buy more investment property to completely defer your capital gains tax.

Check out

https://www.youtube.com/watch?v=fNTOSa5jwt4

about C Corp advantages now.  he has other related videos on asset protection and anonymity, including tax tips.

@Cardell Montague

Figure out your business plan. What sort of investing are you interested? Then, find professionals to talk to or potentially you can track online to start getting your “feel” for the market

@Patrice Bocci

First, you should be mortgage shopping upfront. Let them know what you are doing. Prequalify THEM that they can service your financing needs, then get a pre-approval.

Then go looking for properties. You want your Proof of Funds in hand so you can put in an offer on a property right away, and not spends days getting your paperwork into a lender after you find an interesting property.

I’m licensed realtor in NJ. Let me know if you need help

@Jennifer T.

From a non-Architect, I think you are over thinking this. For a rehab/renovation...

1. Have some idea of what you want to do. If start wanting to reframed walls or rooms you’ll need architectural plans. But let’s stick to remodeling/reno

2. Demo / remove any leftover household items

3. Any rough electrical/plumbing updates

4. Insulate and Sheetrock

5. Windows and doors with trim

6. Flooring

7. Install kitchen cabinets, finish electrical and plumbing

8. Paint

9. Finishes, eg door hardware, etc

The point is you are putting everything back where it was you don’t architectural plans. Yes, you have to decide on paint colors, bathroom tile, flooring, light fixtures, plumbing fixtures, etc... that can be an interior designer’s role, but I think that is more suited if you were doing a $1M plus home...

If it helps, think of it this way... have you redone a bathroom before? What a new kitchen? What about new flooring, be it carpet, tile, or hardwood? What about some Sheetrock and spackling?

For a basic reno, just put all of that together in one house. If you can’t, that’s where you need to hire a GC to figure and manage this for you. Or, this is where you need to learn.

Does this help?

@Kyle Larson

In my opinion, it depends on your life situation. While it would be tax efficient to keep moving every two years, it may not work for your lifestyle. Maybe you have a family. Maybe the location doesn’t work, eg schools, commute, etc

Whether you go short or long term, depends on your personal business plans/goals. What risks or issues do you prefer to deal with? Long and short term deals are, well, different. Different cash flow requirement, different tax situation (dealer vs investor), frequency of finding deals, etc.

So, when you figure what you want to do, then you move forward with action plan. Of course, it could be both...