All Forum Posts by: Gastón Silva

@Austin Ulsh I would check with financial services companies, ex Fidelity, Vanguard, Schwab

@Daniel McNulty LOL no random questions here? So then what, the forums are for very specific and precise questions? Hell no, for that I rather pay an attorney.

@Dave Schram yeah, I would expect to pay the state tax on the gains. Unless CA becomes OZ confirming within those 10 years.@Jay G.

@Jay G. Even when CA is non-conforming, the incentive is still positive money-wise, right?

Investing in CA
setup total $2000
over 10 years $26,000+

That allows those federal taxes to appreciate and generate cash flow if allocated to a RE property.
If the $345K can appreciate/earn 5% per year in two years, you are already in profit.
$17,250+ per year, over 10 years $173K, plus the appreciation of the property. (higher if the lease isn't locked in and rents go up)
This is very hand-wavy, the 5% I just pulled out of a hat, but I think it paints a reasonable picture. Especially considering in the last few years, some properties have appreciated 30% to 50%.

I don't a practical experience with any of these, but I'm looking into it as well. Would love to hear from someone that's on this boat already.

watch this video to get you thinking about what your needs are. In my case, I'm still going to get asset protection for my first property because in California, even having a tiny piece of equity still is a sizeable chunk of money.

Should You Get an LLC For Your Real Estate Business?

Hello,

Does anyone have referrals for attorneys with experience in the qualified opportunity zone funds? Specifically in Los Angeles, California. Does anyone know of a firm or attorney I can hire to guide me through the process?

Thanks, I'll check it out.

I'm looking around in LA as well. I'm surprised by the numbers you posted

> 45%-50% down

What's happening with that? I would expect the usual 20% to be the expectation. That's what sites like Zillow and Redfin show.

> CoC 1%

If I saw a property like that, I would consider it. The CoC return I see for properties in LA (west LA) are -10% to -15%, yes, minus! A -5% looks pretty appealing to me lol

I replicated the rental property calculator using a spreadsheet. I get the same results given the same inputs :)

Something I noticed is that the Bigger Pockets calculator adds CapEx to the NOI calculation. But when understanding the formula (Investopedia), what I learned was that you don't include CapEx as part of the expenses you subtract from the total revenue. Does anyone know the reasoning behind the discrepancy?

I'm guessing Bigger Pockets, in general, takes a more practical approach to things. So, CapEx is still money coming out of revenues (saved), and you can't count on it. Whereas the Investopedia approach is more academic?

Just saw the podcast, and @thekingmalak talks about corporations.

He also mentioned the forms you need to use: 8949 & c corp 8996

If you look up the info on the IRS website, you'll confirm that form 8996 is used for both corporations and partnerships.

> A corporation or partnership uses Form 8996

Why you would use a corporation vs a partnership is something that's probably best to ask to a CPA.