All Forum Posts by: Jason Pritchard

@DJ Dawson Whats up DJ....the home is in Fresno, there are currently renters in there right now but we should be getting keys tomorrow.  I'll be at the property this weekend to walk through and take some pics with my partner.  I'll probably end up posting some kind of before and after once we're done.  

Hey Everyone,

I'm looking for some advice on how to best defer capital gains taxes on my next fix and flip project. I'm partnering up with my brother in law to flip a house that he owns but has been renting for just under 2 years. He purchased the home in 2010 and lived in the residence for 3 years prior to moving and renting it out, he is currently renting the home he lives in now and owns no other property. We have started the process of forming an LLC and I am currently working with a friend who is also a RE attorney to help guide me on the proper formation of the business. Here's what I would like to know:

Option 1 would be to transfer title of the home into the LLC's name, fix and flip the porperty, and do a 1031 exchange to defer capital gains? I have spent some time on this forum and also online researching the ins and outs of how a 1031 exchange works so I am somewhat familiar with the process.

Option 2 would be to keep title in my brother in laws name and since this was his primary residence for 3/5 years have him sell the home without having to pay capital gains (at least this is my understanding of how the law works). I would work with my attorney to make sure that all the legal paperwork is in place to prevent this deal from getting sideways on me.

I do understand that that there is more risk with option 2 since I would not actually be on the titile of the property but I do like the idea of having access to our profits right away without being forced to adhere to some of the guidlelines within a 1031 exchange. I am open to any thoughts or opinions that you may have, thanks in advance for the help!

Sorry....meant to post this in the 1031 exchange subforum :(

Feel free to close this out and I will repost in the right spot.

@Larry Fried Hey larry, thanks for the welcome.  

@Chaz Reid Appreciate it bro....best of luck to you as well.

Thanks Dave!  I've spent a lot of time reading up on the resources availble on BP as well as listening to the podcasts (which are my favorite).  It's amazing how much knowledge and information is available on the BP site.  

Hey Everyone,

I'm looking for some advice on how to best defer capital gains taxes on my next fix and flip project. I'm partnering up with my brother in law to flip a house that he owns but has been renting for just under 2 years. He purchased the home in 2010 and lived in the residence for 3 years prior to moving and renting it out, he is currently renting the home he lives in now and owns no other property. We have started the process of forming an LLC and I am currently working with a friend who is also a RE attorney to help guide me on the proper formation of the business. Here's what I would like to know:

Option 1 would be to transfer title of the home into the LLC's name, fix and flip the porperty, and do a 1031 exchange to defer capital gains? I have spent some time on this forum and also online researching the ins and outs of how a 1031 exchange works so I am somewhat familiar with the process.

Option 2 would be to keep title in my brother in laws name and since this was his primary residence for 3/5 years have him sell the home without having to pay capital gains (at least this is my understanding of how the law works).  I would work with my attorney to make sure that  all the legal paperwork is in place to prevent this deal from getting sideways on me.  

I do understand that that there is more risk with option 2 since I would not actually be on the titile of the property but I do like the idea of having access to our profits right away without being forced to adhere to some of the guidlelines within a 1031 exchange.  I am open to any thoughts or opinions that you may have, thanks in advance for the help!

Good Morning Everyone!

I wanted to take a minute to introduce myself and get a chance to interact with some other BP members. My name is Jason Pritchard and I am an aspiring RE investor from the Fresno/Clovis CA area. My background includes experience as a sales manager for the IT/business sales department of a large computer retailer as well as being a recruiter and advisor for a private university. After 14 years of corporate jobs I am ready to branch out on my own as an RE investor.

REI has been something that has always piqued my interests but I've put off getting started for one reason or another. I've lurked on the BP forums for the last couple years but now that I am actually making some progress towards my REI goals I figured it was time to start getting more involved.

I am currently partnered up on a fix and flip project in the Fresno area and we are getting ready to start the rehab within the next week or so. I have meetings set up with contractors this coming Monday and my goal is to have the house ready to list within the next 30 days. There have been a lot of ups and downs before getting to this point but I'm excited to get this first project under my belt.

I hope to use the BP forum to gain as much knowledge as possible about REI in general but more specifically fix and flips and also wholesaling. I have the available cash to fund one or two projects at a time but the idea of wholesaling is also very intriguing to me for a number of reasons. I also hope to use the forums as a way to network with other like-minded individuals who are as interested and passionate as I am about leveraging REI to help them achieve their personal and professional goals. Thanks for taking the time to read my first post and I look forward to talking with everyone!