All Forum Posts by: Jason H.

2014 was my wife an I's first year as real estate investors and we managed to get our first fix and flip under our belt.  Exciting!  

I've learned more this year actually doing then I ever did reading and researching and trying to figure out how to overcome my fears and take the leap (thanks in part to our mentor and a great network of people!).

But what I've realized in reflection is that "rehabbing" is a means to an end, even though I love the entire process.  Although it is a great way to build up some capital and maybe build a rental portfolio and some passive income, it is not going to get us living the shivas life on a beach anytime soon unless we can do some serious scaling, outsourcing, and automating.  

This realization has also got me thinking about how I can monetize everything that I do to generate other streams of income.  It appears to me that paying for a stager is a quick fix, but starting a staging business to compliment my rehabbing business is better.  Why give free advice when I can become a coach.  How can I sell this excel spreadsheet I spent months refining.  How can I capture all of these profitable ideas running through my head and manifest a real business model around them; maybe write a book like @J Scott did.  

All of these ideas have once again got me feeling stuck, not sure which direction to go in.  I can see that focusing on too many things at once can lead to every aspect of my business suffering.  I can spend the next decade rehabbing 500 houses too.  Ok, then what.  

I guess I was hoping to open this discussion and hear how other people feel on the subject.  Does anyone have experience monetizing aspects of their business?  Success stories?  Challenges?  

I was a bit surprised to see that there was very few threads on BP discussing monetization. 

Jason

Thanks Eric!

The rehab property was purchased through my LLC with my HML holding a 1st lien against the property. What I am trying to accomplish here is having my partner's LLC invoice the title company for his portion (50%) of the net sale proceeds rather than having my LLC book the entire profit. I would think that splitting after closing would require my LLC to report capital gains on the full net sale proceeds, and even after splitting the 50 and writing off as an expense, I would be eating a few thousand in taxes that would be unnecessary if we split at the settlement table...

Hey there BPers,

Question:  I'm JVing a deal (50/50 split net sale proceeds) and I am curious as to when this split should occur to avoid incurring any unnecessary capital gains taxes.  I'm assuming the 50/50 checks would be cut at the settlement table and that I would be responsible for the capital gains owed on my share.  Is this correct?  

Are there any other strategies that might be advantageous or other ways to restructure the split that might be worth consideration?  

Thanks all!

Jason

My current Hard Money Lender funds my Rehabs at 2 Points (1 at purchase 1 at sale) and 12% on 6 month term with option to extend for 2 additional points per quarter.  

The typical HML is going to charge higher rates. You really have to shop around to find a HML that offers reasonable rates.

To answer your question, I believe 2 points and 12% is about as reasonable as you can find.  I have other lenders who do 4 points and 12% as well which is not bad.