All Forum Posts by: Dani Beit-Or

@Stuart Udis, after 20+ years in business and real estate investing, I’ve seen and experienced a lot. Trust is essential in any partnership—without it, I wouldn’t even consider moving forward.

That being said, I’ve seen cases where an employee mismanaged funds, thinking they could get away with it (and did for a while). I’ve also seen owners of a fund pull money from escrow accounts when cash flow got tight.

Being trusting is good, but being trusting while also putting safeguards in place is even better. Fraud, even when caught, takes time, energy, and money to resolve. When people are juggling multiple businesses, the temptation to shift funds—even temporarily—can arise.

Interestingly, the builder fully agrees with these precautions—he’s seen things too.

My approach? Better safe than sorry.

I'm looking to partner with a builder to raise funds for a syndication holding long-term rentals. We've worked through most of the financial aspects, built in buffers, and taken a cautious approach.

One key priority is setting up checks and balances to reduce the risk of fraud, especially when it comes to handling funds. I want to make sure there are multiple layers of oversight to prevent issues caused by a bad actor or rogue employee.

Here are some ideas I have so far, but I’m looking for more:

1. Two signatures required for checks over $1,000 – Does the bank actually enforce this? And what happens with electronic payments (Zelle, wire, ACH, etc.)?
2. I hold the account in my name and grant them access – Would this create any liability for me?
3. Legal agreements – Of course, I’ll have an attorney draft and review them, but I want to come prepared with ideas to strengthen protections.

What other safeguards or ideas do you suggest?

We own a rental property in Helena, AL that we purchased about two years ago. 

When we bought it, we made sure there were no leasing restrictions in the HOA rules.

Now, we’re are notified that the neighborhood is pushing for new leasing restrictions, and it’s not just about Airbnb—it seems like they’re trying to limit long-term rentals as well. The exact changes to the CC&Rs aren't clear yet, but we can see where this is heading. We received a notice from the HOA and waiting on a voting date & time on the proposed changes.

Has anyone else faced a similar situation?

• Were you able to fight it, and if so, how?
• Are there any Alabama laws that could protect existing investment properties from new restrictions?
• Any tips or suggestions on how to push back against this?

For context, we have great tenants, take good care of the property, and have had no issues in the community. This isn’t a problem property—just trying to protect our investment.

Appreciate any advice!

I’m looking for insights on how to put together a deal with the following details:

• Asking Price: $260K
• Market Value: ~ $265K
• Property Details: 3 bed / 2 bath / 1,400 sq. ft.
• Days on Market: ~100
• Loan Type: VA Loan (Attempting a VA Loan Assumption)
• Mortgage Balance: $200K

The Challenge

The seller is behind on mortgage payments, and while I don’t have an exact amount, the agent mentioned it’s over $20K. The agent also stated that because the seller is behind, the loan cannot be assumed.

Questions for the Group:

1. Is it true that a VA loan cannot be assumed if the seller is behind on payments?
2. How can I structure this deal to protect my interests? I’m open to paying the $20K to bring the mortgage current, but I want to ensure my position is protected. If the deal falls through, how can I secure my $20K so I’m not left out of pocket?

@Nathan Gesner - TY! So strange as they ghosted me

@Nathan Gesner have you used SureVestor? I spoke to them about 1.5 months ago and since then they have been non-responsive that makes them look like not the real deal and I'm wondering if they are still around and active and good? TY

@Tim Delaney that had been my experience as well. 

Hi, 

Are there any lenders offering HELOCs or second mortgages on rental properties with equity?

I'm exploring ways to access equity without selling.

@Jaron Walling - Thanks for the answer!

@Dave Foster, thank you for the detailed info! I understand your points, but I want to clarify the tax consequences in my example. I’m simplifying the numbers here to focus on the main concept, so I’m leaving out factors like expenses, improvements, property management, repairs, etc., for now.

Here’s the scenario:

- I bought my house in 2022 for $1MM and used it as my primary residence.

- In 2024 (after 2 years), I moved out and converted it into a rental. At the time, the house's estimated market value was $2MM.

- By summer 2025, I plan to sell it. Let’s assume I can sell it for $2.5MM, net after sales expenses.

In a straight 1031 Exchange, I would sell the property for $2.5MM and need to exchange into another property (or properties) of equal value to fully defer taxes.

My questions:

1. Since I have the $500K exemption, does that reduce the exchange amount from $2.5MM to $2MM? Or do I still complete the 1031 exchange for the full $2.5MM, with the $500K deduction only reducing the deferred tax owed?

2. Also, does the 1031 exchange cover just the $500K gain (appreciation since converting to rental) or the full $1.5MM gain?

Thanks for helping me understand how the $500K exemption interacts with the 1031 Exchange!

If my wife and I own our own house which have appreciated well over 1 million, and I would like to use a 1031 exchange in order to defer taxes - 
I have these questions, let's assume we purchased it for $1 million, and it's now worth 2 million dollars and I lived in it for the past 3 years as my primary residence.

1. Will I still be able to use the $250,000 per spouse exemption on the appreciation, and how will this impact my 1031 exchange?

2. In order to benefit from a 1031 exchange to defer my taxes will I need to convert my primary residence into a rental property and if I do, what's the minimum amount of time that I need in order to hold it as a rental to make sure it qualifies for a 1031 exchange?

3. Say we rent it out for 1 years after we move out - will the defer amount in the exchange be our entire appreciation?  only the appreciation gained during the leasing period? and how will the $500k exemption play into it?