All Forum Posts by: Ian Berg

I agree with you @Jay Hinrichs. When I go to my credit union for a commercial loan there is no junk fees, no origination fee or maybe a half point origination and a better rate. Compared to a mortgage broker that adds on so many fees for the same loan. Most home buyers don't shop loans and just take whatever the mortgage broker is selling them. An agent that works for me has a closing today, when I reviewed their closing statement there was $15k in fees from the mortgage broker. That $15k adds an extra $95 /month to the mortgage that these buyers will be paying for the next 30 years, crazy. 

I'm purchasing a 2 acre development property from an older lady who has lived there as her primary residence for 20+ years. She wants $1.5M for it which is a fair price. She wants to buy a duplex with part of the proceeds. I have a few newer duplexes that I could trade her. We are thinking I give her a duplex free and clear that's worth $800k and $700k cash. 

Now my question is this: Is there any strategy to help her avoid taxable gains on the trade portion of the sale?

Would it help her tax wise if she carried a note for the $700k or a portion of it rather than taking the money up front? 

I ended up reaching out to a couple of tax attorneys on this. They recommended that I transfer into my wifes and my names as individuals to complete the sale / purchase then transfer back to the LLC. They said because we are a married couple and the sole owners of the LLC there is case law supporting this.

Thank you Ashish. For clarification the two member LLC is basically a holding company for some of our rentals (11 properties) and does file it's own tax return.

How would you suggest we structure this?

Hi BP, 

I'm currently selling a single family home that I hold in a 2 member LLC with my wife. It was originally purchased under my name as an individual. We are purchasing a 4 plex with the 1031 proceeds combined with a conventional loan. The loan needs to be in my name as an individual (loan requirement). The 1031 accommodator says the names need to be the same on both closing statements.

Here is what we are planning: Transfer title of the relinquished property into my wife and my names as individuals, close the sale and purchase loan and then transfer back into the LLC immediately after closing.

Is there a cleaner way to do this without creating a taxable event?

Yes but only 45 days to identify. With the moratorium on foreclosures it will be well into the new year before the real opportunities surface. Looking for a placeholder until then. 

I'm selling a property that closes at the end of the month and will have close to $500k in proceeds. I think there will be more opportunity next year to reinvest and I should have more time to find deals. I'm looking for some creative strategies on where to park this money for the next 6-10 months. Basically I don't want to pay taxes on it now but want to have it available sometime next year. Any ideas? 

Hi Annie, 

I use Will VanVactor in Bend. Attorneys can write a sales agreement in Oregon but they don't handle closings like in other states. 

Will Van Vactor
www. vanvactorlaw .com

I sell in Redmond & Prineville and would love to help out. 

Hi Haley, 

Oregon is a pretty diverse place. You'll need to decide what part of the state you want to be in be in. For a $250k duplex budget you'll be looking at Willamette Valley (Eugene/Springfield or Salem),  southern Oregon (Medford to Grants Pass) or Central Oregon (Bend / Redmond) or basically anywhere on the coast. Portland is probably outside the budget.  I'm a residential broker and property manager in Bend so obviously i'm partial to Central Oregon. East of the cascade mountains is  considered the dry side of the state (12" annual rainfall in Bend / Redmond vs. 50" in Eugene & 70" at the coast) Southern Oregon is somewhere in between. Economic factors make the Willamette valley and Central Oregon more attractive to me as an investor vs. the more limited economy in Southern Oregon or the coast. Bend is outside the $250k budget but Redmond could work for you. I helped another BP member find a duplex house hack in Redmond last year that is very close to break even.