All Forum Posts by: Ryan Easley

Criminals commit crimes.  Prosecute once they do. Be careful to only work/invest with reputable people.

Frankly, the self-certification is one of the aspects I am most excited about.  When I first heard about these I expected mountains of administrative/legal fees that would price smaller investments out or IRS approval would take months for these.  Hopefully this will expedite the flow of capital into these communities and do some real good.

Per my sources, IRS guidance on this is one of their top 5 priorities. We should know more about the self-certification etc. by end of summer (...hopefully).  But as of now the only way to get the deferral is to invest within 180 days so, I'm pushing forward.

Not sure what you mean by ”registered there, get is designated by the IRS and then allow transfers".

Per the FAQ, telling the IRS you are a QO Fund is just a (form pending) self certification with the tax return.

I'm already pretty deep in this. Currently involved with several clients trying to defer large Dec. 2017 sales of stock, business, crypto, etc. Clock is ticking so we will be making decisions quickly.  Let me know what you want to know, online or off. 

I have been closely following the developments around Qualified Opportunity Funds/Zones for the last bit now.  Everyone has pretty much been on hold until we get more guidance from the IRS; but, yesterday they updated their FAQ to indicate that even gains from 2017 can be deferred, even if the '17 return has been filed.

The gotcha here is that the gain amount (just the gain amount; not the entire proceeds unlike a 1031) needs to be invested in a QO Fund within 180 days. Functionally, this means that as of today only sales on/after 12/10/2017 are still eligible for the deferral and that ticks on every day.

Check out the FAQ above or § 1400Z-2 for more info; but, essentially congress is trying to unlock the trillions of dollars of unrealized capital gain and put that money to work in designated opportunity zones. About 10% of all census tract are QO Zones so this is a pretty wide swath of the nation.

Benefits to the Investor:

• Deferral of the capital gain income invested until the earlier of the date the fund is sold or 12/31/2026
• 10% Basis step up in year 5
• 5% Basis step up in year 7
• After holding for 10 years, Basis = FMV and no gain is recognized on sale.

There is still a lot that needs to shake out between here and there; but, (as of now) the only way to preserve the option of the deferral is to get funds invested into a QO Fund within 180 days.

Hopefully your tax people are on the spot with this; but, it's so new, cut them some slack if they aren't.  Either way you are definitely going to want some help to confirm this would make sense for you.  Hope this saves you some tax dollars.

@Prachel C. Ex-neighbor now - just made the move out to the sticks of Dallas, GA :-p

@Alex Capozzolo

Hey guys, thanks for the support! This tax season has kept me pretty busy not to mention closing on this and my personal home over the next month.  Exciting times!  

Quick update:

Inspection is tomorrow, with busy season it's a bit too much out of my day so my realtor and wife are running point on that. We are using private money to purchase with the idea of cash out refi within six months after a few value adds. (BRRRR) Pay back the investor and get into the next deal. My personal goal for us is to get at least a million in property this year, but if the right big deal comes along, I could adjust that figure.

@Alex Capozzolo Yea, I can really see this being a game changer. I'm excited to hit this deal hard but I've already got my eyes on the next.

@Collin Doss We got in contact a bit ago, but closing is a bit away still (4/19 for now) I'll follow up as the date gets closer. 

@Jade S. haha, thanks that's the plan!

@Gene Grey My biggest takeaway is how frustratingly slow/hard it can be to do a deal.  There were a lot of duplexes I wanted to offer on and start moving; but, getting people to move it along is surprisingly tough (a few are still on the market).  The wife just got her RE license though so we are going to start going crazy on throwing out offers.  Cash will probably be tight; but, I trust my math and her eye so if those two things make sense I am confident we can get the deal funded.

@Maurice Graham sounds fun, have you done deals with any one you've met so far?

@Jeff Kehl That would be great, and if duplexes/multifamilies aren't your flavor feel free to pass them on! 

I had never heard of a bridge loan, it sounds interesting if the interest is workable. I touched base quickly with the lender and I should know more tomorrow. I'm really just thinking about doing private money for the first few months then flipping on the financing if they'll go for that.

We will see.

Hello BP,

After a couple months of hunting we just got the contract on our first real estate investment! A couple of duplexes up in Rome, GA.  I just wanted to say a big thank you to everyone who makes this forum so great. It feels incredible to put everything I've learned and read over the past couple months into action.

I know it could still fall through for whatever reason; but, at this point it's safe to say I am hooked.  If you want to connect, chat, and hopefully make some money together I'd love to hear from you.

Time for me to get back to tax season! (And a friendly reminder of tomorrow's deadline!)

-Ryan

I'm interested in this as well. I have the contract for a couple duplexes well below comps. They make sense as a buy/hold once I get rents up; but, if the strategy is successful I really want to rinse and repeat quickly.

Let me know what you find out.  I've been trying to get a hold of a local mortgage company for a couple days that my realtor suggested.  If it works out I'll get you their contact info.

@Brian Adams I just gave your story a read, wow! I definitely have that same "if this guy can do it!" feeling when I'm still at the office at eleven during peak season.  I have a very similar plan on getting a smaller property first to test the waters while I'm working and then starting to get involved in larger and more exciting deals.  Look forward to hearing more from you!

Great way to start a new year, look forward to meeting all of you!