All Forum Posts by: Eric Fete

Hi all

I wanted to get some input/advice on a property acquisition:

I have a property under contract but can only buy in my LLC (I was doing a 1031 and have to follow the 1031 exchange rules). The only lender who can do this in this area charges a higher rate (around 7%) which hurts cash flow. Looking at approximately $200/month on a 137k property.

I was going to just take the cash and buy in my own name (and transfer to a LLC later) as my lender who can do it this way has rates around 4.5% so better cash flow. The risk is that I may have to pay capital gains tax next year (not doing the 1031).

Or I can just use the funds and buy another property in another area (and hopefully get more cash flow).  Under the 1031 rules to do it this way I can't get my cash back from the exchange agent until December.

SO:  close now for lower cash flow 

or

wait until December and find a better deal?

Any thoughts from the community?

Thanks much!!

Live great

Eric 

Hi Jason

My PM has a good attorney who deals with evictions etc.  Let me see if I can find his name.

Eric

Hi Howard

I am here in Columbus.  Perhaps we can talk sometime!

Eric

Hi all

I was referred to NASB for non recourse lending for self directed IRA investing. I was wondering if anyone had any direct experience with them?

Thank you!

Eric

Hi Brian

Thanks for the information.  I was away from BP for a while and just started up again :)

Sorry I missed the meeting but I just saw this post.  Let me know when the next one is!

Thanks

Eric

I guess my main question would be is what happens when I sell the properties in the S-corp? Is there any negative tax implications? If so is there a way to avoid that perhaps by re-converting the corp to a LLC?

Thanks again!

Eric

Thank you gentlemen!

Eric

Hi all

I had several properties in a LLC and in order to buy more my mortgage broker (very savvy guy) had me re-structure/re-characterize my LLC into an S-corp (essentially a LLC taxes as S corp). That way that one entity could hold several properties and then I could then buy more in my own name (we can buy 10 in our own name through Fannie etc)

I was told by a real estate attorney that holding properties this way (in S corp) could be problematic when the time comes to sell them. He mentioned it's not advantageous from a tax perspective, having to pay some type of entity level tax? Anyone heard of this or had issues selling properties out of an S corp?

I don't plan on putting more properties in the corp; it was a one time thing to allow me to buy more.

Thanks for any input!

Eric 

Columbus, OH

Hi Taylor!

Welcome!

I am here in Columbus and have been investing for a while. Feel free to call me anytime!

Eric
614-420-2037

Barry

Welcome and good luck! There is tons of good information here and everyone does a great job of sharing and offering solid advice.

I am local here in Columbus and would be glad to help in any way I can. Give me a call sometime!

Eric