All Forum Posts by: Chris C.
Chris C. has started 15 posts and replied 32 times.
@Kory Reynolds and @Account Closed,
That all makes sense. What would you say the cost would be to setup and maintain this type of structure?
Been looking at a structure which will be optimal for having a portfolio of rental properties, financial investments, and all the other general life stuff, which will assist in asset protection, as well as tax liability etc.
Thoughts on this?
Quote from @Bill B.:
Because he can put $1million on black at the casino and still have $1 million left when he loses. IE: easiest way to double your money? Fold it in half and put it in your pocket.
No one who has actually made a $1 million on one deal is going to have a plan that works for you. It will be along the line of…
This broker I’ve worked with 10 times over the last 20 years brought me a smoking deal. The seller’s of a $4 million 10 acre compound needed $2 million by Friday to pay off their mortgage or they’d lose the property to foreclosure. Did I mention it was Wednesday? So I got on the phone with the hard money lenders I’ve used several times per month for the last 10 years and secured $2 million that day. I paid off the seller and gave them $500k in “cash” from my reserves and closed on Friday.
I split off 2 acres for my dream home and sold the home and remaining 8 acres for $3.5 million clearing $1 million plus 2 acres of land. Of course being a flip means I owe more than $300k in taxes so that bites. Maybe I moved in to it for 2 years with my wife and then sold it so 1/2 of the $ 1million was tax free and then did a 1031 with the remaining $3 million to pay zero taxes, if I was smart.
I wish I knew how to do deals like this well with RE and had all the contacts. It's like anything else just gotta get in the game and working the process.
Quote from @Don Konipol:
Start with $2 million
If Your goal was to clear a million on one deal what would you do?
Post: 1031 exchange residential land to investment property
- Dallas, TX
- Posts 32
- Votes 2
Quote from @Account Closed:
Quote from @Chris C.:
Any idea how to go about calculating how much tax I'd owe when I sold the land?
You would need to calculate your basis in the property, then see how much gain or loss you have. That is your taxable basis. From that you either can offset or add to your AGI or capital gains depending on which type of gain it is. That is the very basic and general way to get it. I would strongly advice you reach out to a real estate accountant and have all of it done for you correctly the first time!
That is very helpful thank you sir.
Post: 1031 exchange residential land to investment property
- Dallas, TX
- Posts 32
- Votes 2
Any idea how to go about calculating how much tax I'd owe when I sold the land?
Post: 1031 exchange residential land to investment property
- Dallas, TX
- Posts 32
- Votes 2
I purchased a piece of residential land on 2021-01-27 to build on and eventually be a rental property. I'd like to sell it and purchase a built property and have that be the rental property. I will sell the land for more than I bought it for and I'm not sure if it's even been long enough or if capital gains tax even applies, and if so would I be able to use a 1031 exchange?
Post: Advice for first time storage investor
- Dallas, TX
- Posts 32
- Votes 2
Quote from @Henry Clark:
You could stack them but you do t want to. Safety, hard to lift, extra stair and railing cost.
That makes sense of course. I was thinking long term value add once say you filled every square foot with a container, the only way to build is up!
Post: Advice for first time storage investor
- Dallas, TX
- Posts 32
- Votes 2
Quote from @Henry Clark:
1. Don’t buy. To high premiums.
2. You’re in Texas, no zoning in the counties.
3. Pick a county or area within 40 miles of you. Something close enough for you to check in.
4. Want you to look at county or city property tax sales. Don’t go to auctions. Look for their off list properties. If they want $25,000; offer them $5,000. Send them a letter. Do your due diligence on the property
5. Look for 2 acres or more. On or near road or crossroads.
6. Look for property with electric high lines over a portion preferably. You can’t build under power lines. Makes property cheaper. You will “build” under them.
7. You’re going to do two products. 20 foot cargo containers and surface parking. Don’t do buildings unless you’re in a market where 10x20 are $130 or more. Can make a profit at $90 but not good enough for risk reward.
8. Read my post on setting up cargo containers and parking.
9. Depending on market your will rent parking for $50 for a 30 foot space and $70 for a 40 foot space. Put these on the other side from the containers. As you rent the containers you will start getting rid of the parking.
10. You will buy Used containers around $2,300. One trip around $2,900. Your catching and unusual moment in time. These were twice this 2 years ago. Buy these in quantities of 10 as you need them.
11. Rent them for $80 and $130 each. They are 8x 20. Similar to a 10 x 15.
12. Spend $3,000 for a website. Join sparefoot during your rent up phase. Put a road sign up for $20,000. Take the calls yourself. If you need a different phone get an easy number.
13. Lane prep, fence, security system, rock roads, etc.
14. Texas has high property taxes. No taxes on cargo containers
15. Insure as Personal property. Use Ponderosa insurance. Part of Uhaul. All they do is self storage.
16. Use Webselfstorage management software. There are better software out there but this is the one you should start with.
17. If you plan to keep do year one writeoff. Containers, fences, roads, pads, security system, electrical, etc. Don’t do if you plan to sell.
18. Run the numbers. Validate all information
19. Don’t trust anything I tell you. Validate.
20. If you do a 3 acre site, in 2 years you should have at least $1mm appraised equity.
Think scaling. Lot of opportunity in Texas. In 5 years you want to have 10 of these locations.
Read my posts and vote for them if useful.
Don’t contact me.
Start small and Make Your Big Mistakes Early.
You mentioned no zoning in counties. So if I was looking for land to drop some containers on, it wouldn't need to be zoned say commercial, or industrial?