All Forum Posts by: Chris Mills

Good morning Keonte,

Congratulations on taking this step in your journey. The move from information to action is the biggest and most important one, for sure. I live in Northern VA, but I'm all over the DMV area depending on the day of the week. I've been investing in this area for quite some time as well. DC, MD, and VA. I'd be happy to connect, and be a resource in any way I can.

There's quite a few great Wholesalers here on BP. So your'e in good company.

@Steve Morris That is great feedback. Most advisors and brokers (ahem, most, not all ;) ) don't know enough about real estate to see beyond the sales brochure from the sponsor, or read between the lines. It's not what they were trained on. Almost none will visit the property. I'm happy to connect and chat further with anyone who would like help sifting things out.

@Michael Beur I'm glad they are performing for you.

I've made a lot of money in certain neighborhoods in DC, but after 10 years of dealing with TOPA, and with where I am now, I've determined it's not worth it for me, personally. Not that I wouldn't recommend certain neighborhoods to others with different risk tolerance and at a different stage of life. You may consider investing out of the area. @Brandon Turner just recently posted on 5 areas where the 1% rule works. 2 were in our area, but I'd say be open to other areas, especially if you have close friends or relatives in better markets.

It also depends on if that million is all you have. It can go fast around here, as you know. You wouldn't want to put the whole sum into an illiquid investment and then have a life event happen, or something happen with the property, and you need cash but can't get to it quickly. 

If you have a business, or a trade, that's a great pillar of wealth that ties in well with real estate investing. I'd certainly invest that way. 

So, there's a lot of "ifs" and "it depends" to your question, but it's a good problem to have. I wish you all the best in your journey.

You'll find that some settlement attorneys/title companies specialize, but they all should be able to handle a 1031 and different lending sources. The biggest difference is going to be with commercial vs residential. You probably won't want to go to settlement on a commercial property with someone who usually only does residential. There's more moving parts in a commercial settlement. 

I agree with most of the responses. If you find a great deal, it's not worth waiting to see if something better is coming along later. The only thing I would add would be to focus on the market(s) you know, and don't try to gauge the "national market" or national data. Your local market may tell a different story and present different opportunities.

I agree that having utilities in your tenant's name is always preferred. I do know in some states certain utilities may have to be paid by the owner. Usually water. Make sure you check on that. Most of the time when I've kept the utilities in my name I've regretted it. 

Good job working down that debt! I think you're correct in your thinking. Hopefully, you can find a lender who can check the necessary boxes to get the deal done nice and clean(ie- DTI ratio), but at the same time, understands what you are trying to accomplish and can advise you accordingly. Do you have any like-minded investors in your area that you can get a lender recommendation from?

The way I've always done it was to determine the risk of the area and decide how much equity I'd be willing to put at risk. In most areas, including where I live, I do one LLC per property. In some areas I do 4-5 SFHs per LLC. It simplifies things a great deal, and the total equity held in each LLC comes out to about the same nationwide.

Hi Connor,

Under normal circumstances, you can do a partial exchange and pay the appropriate taxes on the difference. In your case, I would talk to a Qualified Intermediary before making a decision (you really should in any case). The IRS usually likes to see more than a year of ownership to allow an exchange. This isn't a hard rule, and can be case by case.