All Forum Posts by: Jeremy Woods

I asked my normal 1031 company and they said it’s doable but expensive so my question to everyone is...I’m looking at selling a property and ending up with let’s say 80k cash, the next property that I’m am looking to purchase will only 50k down but about 30k in rehab. Does anyone have or know of a company that doesn’t charge an arm and a leg that can do a 1031 that will allow for rehab cost? My company was saying that for them this type of 1031 starts at 5k and goes up from there, if I was just going to take the tax hit I’m looking at 6,500 in CG tax.

@Edward B it’s under a mix but they are all 4 units or less so they would fall under residential but we are also considering a portfolio lender who would do a 5-7 ARM. I just wanted to make sure I had the timelines correct so I could budget properly.

I tried google and looking on bigger pockets but I can’t seem to find an answer. I’m looking at a purchasing a group of Multi families that need work right away. Owner is willing of course to do an owner carry since there are bound to be issues that would kill a conv loan. My question is if we purchase these properties and put in the work right off the bat is there any kind of seasoning period that we would have to be aware of like there is on Conv loans 6-12 months or because it’s an owner carry it would be treated differently and we could refinance right away?

@Patrick Purviance, nice to meet you as well, excited to see how the boys do in the Tournament in a few days.  We own a few SFHs out here in Colorado and a duplex in KC along with a 16 unit in Wichita that we just closed on. We are trying to change out focus to strictly multi families. I would love to connect and I’m always open for new opportunities. 

Like Jon Holdman was saying you can calculate fairly close. Use a amortization schedule calculator and figure out when the home was purchased or changed hands last (that information is usually available) type in the best guess figures. I would run down payments at 3.5% and 20% so you have a fairly good range. It won’t give you exact but you can have a ballpark if you’re trying to use that number to make an offer.

I don’t know much about it but have heard negatives. I found this site after reading your post because I wanted to know more. Hopefully this can at least give you some insight. http://www.polybutylene.com/realtor.html

@Matt K. I get what you are saying but that's why I said that the LLC has to be ran properly and podcast 109 actually answers most of the issues you pointed out. Honestly I don't know if you have listened to it but it is worth while. It covers a lot of your hesitations/ reasonings for not forming one.

@Matt K. I have to disagree with you on this one while I operate currently under my personal name and have an umbrella policy, the article you linked explained the benefits of not doing a LLC from the perspective of being a owner occupant. The only points Scott Trench made in that article that could be applied to this situation is that LLCs need commercial financing. But In this case he is moving his property after the deal closes and the likelihood of a due on sale clause being activated is anyone's guess (I'm not going to speculate on that) but if you listen to @Scott Smith on podcast 109 he points out a lot of reasons as to why a LLC is way better protection vs. just an umbrella policy if set up and ran correctly. If you are risk adverse a LLC really can only help you in the end vs hurt you though there are cost associated with setting it up and running it properly. 

@Jonathan R. I wish I could hit up a meeting it would go a long way towards getting to meet other investors/ people in the industry out in Wichita. I’ll have to plan a trip out there around making it to a meeting and getting some Emperors Grill. 

Hey @Dallas Kidd nice to meet you, reading through your profile. How have your flips gone? I’m midway through a project right now out in Raytown so definitely interested in hearing your experiences.