All Forum Posts by: Anthony Andrew Young

@Ellie Perlman

Thank you for explaining the details of co-star to me. That sounds like a very easy and verifiable way to quickly find out!

@Ellis Hammond

Thanks for introducing both of the websites to this thread & for the rental property tip. I'll be sure use these strategies. 

@Joel Owens

@Joel OwensAlthough it seems obvious now, I didn't' even know Tenant Brokers existed! I actually have a property now that I am looking for businesses to check out. You just made my job a lot easier!

Thank you for asking! Hopefully other people will share their own ideas & experiences too so that we can all benefit from additional strategies/insight. 

Thanks for the replies so far! I haven’t thought about some of these tips. I wonder if anyone has any other ideas? 

Is there a fast & easy way to guestimate what the monthly/yearly lease rate would be on commercial space? Something Like but for commercial spaces would be a great bonus! If there isn't one, but you know another way to quickly estimate a price, please let us know!

I believe you can eliminate your taxes. The way you can eliminate all of your federal taxes this year, and even eliminate future taxes, is to take advantage of the Opportunity Zones Funding. I'm surprised to see only one other person mention this strategy on this forum post, and no one seemed to respond to his post. 

You take your current profit and put it into an OZ fund which you can set up yourself. Then you buy a property located in a Opportunity Zone with that fund. As long as you hold onto that property for 5, 7, or 10 years, you can potentially receive unheard of tax benefits, Including the possibility of reducing your original taxes by 15%, delaying the payment for 10 years, & paying ZERO taxes on your additional gains on those new properties!

Let's say you buy an abandoned building in an OZ to turn it into a Multi-Family. You buy the building for $500k, remodel it for $600k, rent out the units and sell off the building in 10 years. You put $1.1m total into it and 10 years later it's worth $2.5m. You are now required to pay your original tax from 10 years prior, but reduced by up to 15%. And what about your new gain of $1.4m in profit? TAX FREE FOREVER! This may seem too good to be true, but it is apparently very real. If you decide that you may want to pursue this route, please note that I have simplified things and there are further complications and requirements. 

@Richard Sherman

Ha ha ha! Therapy dolphins and Emotional support Tigers, here we come!

Thank you for your insight.  I really like your attitude and strategy about this because you've taken a potentially difficult issue and made it extremely simple. I will learn from you and mimic this awesome pet attitude for my projects. 

I grew up in apartments my whole life and have witnessed my parents great distress at not being able to pay their bills while seeing their rents increase. It's important for me to think about how I would feel if I were in the occupants shoes. So I try to help my occupants out as much as possible. At the same time, I know that if I can never get them to leave, then I won't be able to make my own loan payments & I'll be foreclosed on as well. 

Here's a strategy that I learned from other investors in Oregon and on BP: I've learned that by paying the occupants money in order to vacate the property, everyone can win. I can check on the condition of the property sooner, make plans before the remodel starts, and usually get them to move out much faster than with an eviction. The occupants won't get an eviction on their record and can get a lot of money for simply moving out (which they'll have to do anyways). 

An agreement that seems to work well is something like this: We meet at the property so they can give me a tour to check for existing damages & take pictures. I then pay them $500 on the visit after they've signed a "Cash for Keys" agreement. They'll be signing an agreement to move out in (usually) 1 month, remove all of their items, and leave the property in a broom-swept condition. We will finally meet up at the property after they're finished to check the property condition. We then exchange his/her keys for my additional cash, and everyone wins!

The key exchange makes the transaction more tangible & easy to understand for both parties, and helps the occupant to let go. Immediately after the exchange I will pull a new door lock out of my bag and begin replacing the front door lock, proceeded by all of the other locks in the house.

@Richard Sherman

Thank you for your specific response about Oregon. I did not know about this and I'll have to re-strategize about my upcoming pet policies. Do you happen to know if you are still allowed to charge additional deposits/fees if the new tenant claims ESA?

The most amazing thing that I've read about opportunity zones is that you can use them for any type of business venture (if I understand it correctly anyways). Although we all do real estate on this forum, sometimes it might not make sense to buy a property in an OZ, but it might make a great deal of sense to try out one of your other business ideas. I believe that most people on here are of the entrepreneurial mindset and would benefit greatly from starting another dream business in one of these Opportunity Zones.