All Forum Posts by: Bernard Golden

@David Orr Thanks for the recommendations and also heads-up on need for material participation. Have an upcoming session with accountant and this will be one topic of discussion.

 No W-2, but you're right that carrying a W-2 makes this more difficult, for sure. 

Any advice on time-tracking system?

Looking for recommendations for a time tracking app suitable for real estate professional status qualification. Ideally would have iphone and web access to account.

Would appreciate pointers both positive and negative.

Many thanks.

Executed a 1031 exchange last year. In looking at draft income tax return, I queried cost basis for acquired properties. Accountant said that 1031 carries cost basis of relinquished property to acquired property/properties. So even if acquired property/properties are more expensive than relinquished property, cost basis is not adjusted upward. 

This seems odd to me, so thought I would query this forum to see if his explanation aligns with 1031 legal requirements.

Appreciate any feedback.

Many thanks.

Am planning a ~$1M 1031 next year. Purchasing in markets in which $100K-$125K is target to achieve cash flow. Plan is to purchase all cash to simplify 1031 exchange paperwork, but wish to then finance at 75% to redeploy capital to additional properties.

Will not have 1040 income next year. In discussing this plan with someone involved in real estate, he stated the lack of 1040 income would require three years of financial records on properties being financed, i.e., so that they could justify financing on their own income rather than via personal 1040 income. He may be thinking of the most conservative financing approach, though, e.g., Fannie/Freddie. That would significantly delay execution of full plan, so want to understand potential financing options with less than three years of financial returns, if possible.

If you have experience financing a portfolio of properties absent 1040 income or are a lender who addresses financing with shorter duration of rental finance history, would love to get your perspective. If you're willing to connect for a discussion, please DM me to coordinate a Zoom call.

Many thanks.