All Forum Posts by: Dante G.

We have been looking for ways to invest assets to build long term wealth and income. Have been investing in stocks and employer sponsored 401's and not impressed with performance and long term prospects if we maintain this course. We realize the growth potential in real estate and gauging current economic conditions and the likely pullback we feel that investing in real estate is inline with our long term goals. 

As part of our educating ourselves on RE investing we are exploring the possibility of taking advantage of the equity within our primary and income properties by forming an RE investment company, transferring ownership of these properties to the company so we may begin to take advantage of existing tax rules and tap the equity for purchasing new properties. 

This is our current thought process:

1. Sell primary property to our investment company for cost to payoff existing mortgage (ex: existing mtg amount $200k property value $400k)

2. Sell existing income property to our investment company for cost to pay off existing mortgage (ex: existing mtg amount $50k property value $100k)

3. Once transactions are completed and any "seasoning" requirements have been met we would tap into the $250k of equity to fund future RE purchases.

4. Future eligible improvements and expenses for the maintenance and operation of these properties would be taken under the business tax as applicable.

5. We would pay rent to our investment company and for all intent and purposes we would be renters and not property owners.

We have more than sufficient funds to cover all costs involved (down payments, closing costs, etc) and wanted to get additional feedback from the community to further evaluate this approach.

Obviously this is the short version but hope it provides enough details to allow for feedback and further  discussion.

Thank you in advance for your time and thoughtful consideration.

I am new to the group as my wife and I are exploring RE investing to meet long term goals so I hope you dont mind my butting in. I have been in business for many years, having been self employed and employed by many of the top 500 firms so I consider myself pretty adept at sniffing out cow chips and I can confidently say this has the scent of the north 40. I think that another user said that the dollar amount and the content or sales pitch sounded similar to others they have seen and in an era where people repackage garbage and sell it as if it were gold I think this is nothing more than a ruse to sell you bags full of banna peels. If the person is serious about their ability to provide you with the skills and knowledge to execute deals then they should be able to do it on spec. So, make a deal, tell him you would be happy to pay the fee once you have seen his words in action and have verified you are getting what you paid for. Dont fall for the satisfaction guarantee, if he is honest there should be no issue. Also is what he is offering really worth the $$? As others have said, investing a bit of time in reading and asking questions in this type of format may be better spent then the $$ and time spent on this guy with possibility of having your wallet a few quid lighter and a few points added to your BP readings. I have always found that the best advice comes from good people with good intentions asking for no more than than respect and reciprocity in return.