All Forum Posts by: Joan MacDonald

 Thanks Alex. I'm reticent to invest in a residential market I know nothing about. Re your deals, why are they off-market if they're cash flowing? 

 Good article. I'll look into those 3 options: Delaware statutory trust, opportunity zone investments, and 721 exchange. Thanks!

@Joe Almeida Thank you. A 1031 isn't likely for me with its tight timeframe, but I do like the "owner will carry" option / holding the mortgage. 

Thinking of selling a residential duplex investment property in CT. A sale would yield $250-300k profit. Owned it for 5 years. I have a commercial mortgage on it in the name of my LLC that I also personally guarantee (as per the loan docs). That's the only debt on it. I'm the sole member of the LLC. I'd like to buy another property within a few years using the profit. What vehicle can I set up to hold this money so I avoid cap gains tax? I know that SDIRAs, etc take time to set up and that's fine. Just looking for what options there are given my details.

For context....
Net rental income on this property is $6500/mo. I have no retirement account. I have no W2 income. I operate a small nonprofit (an actual 501(c)(3)) in the education field. I have a 2nd LLC set up for other business income but haven't had income on that since 2020. I own my own house around the corner (also a duplex) and it's in my name (no LLC.)

My reasons for selling: 
A) prices are up,
B) my elderly parents need me and this house takes all of my time as a diy-er,
C) property management is 15% or more near me + it appears they only collect rent / execute leases; repairs would still require my energy, 
D) labor shortage means no reliable, skilled, sober handyperson to do upkeep that I do now (tile bathroom, paint a room, etc)
E) a cashout refi will not solve my problems- see B

Make sure the lease says that all signors are "jointly and severally liable" for the terms of the lease. If either one leaves the other with monies owed to the landlord, you can sue each of them with legal good standing without concern for whatever agreement they had between them.

I've done a lot of what's been suggested here. For my comfort, nothing beats staying in the market that ur really familiar with. Find a way to buy in the best location you can afford in SD and just get started. Decide on what sacrifices ur willing make and make them without delay. Living in a place you don't like for 1-2 years will do more for your future (and for the elevated vibe that ownership brings) than waiting that same time for a better situation to arise.

@Konstantinos Zaferatos

do I know anyone who's done a smart contract for real estate? no. but i'm going to know shortly bc this idea will transform this industry imo. 

this is a good article on the idea of sc's in r.e. https://www.finextra.com/blogp... 

this is a consulting company that deals in smart contracts https://www.itransition.com/se...

I'm ready to invent a model where current renters buy houses, or utilize houses/units/buildings that I own, using smart contracts. The core idea is that ownership and rental income (to them as owners) are both fractional. Ownership is also temporary and they must occupy the space while they own it. There's a market for shorter term ownership. That is, people own their share of the building or unit for shorter lengths of time than would be required if they went all in to buy a house or condo. I envision smart contracts with easier and quicker in/out terms than traditional ownership. This would make real estate ownership more nimble, more affordable and accessible to more people. Starting idea: REITs that are owner-occupied, local and much easier to enter and exit. Anyone want to get a more focused discussion group going on this? 

@Katrina Razavi @Ian Cherkowski @David Luu @Aaron Stuiber @Jonathan Hickerson

Point of discussion on this awesome topic: If crypto is classified as property by the IRS, then can a person 1031 exchange a real house for an NFT house or some other cryptoasset? Any examples of someone who's tried? 

Excellent! I'm from Norwalk CT US ..approx 60km from NYC. Buy + hold wanting to get into more passive rei. I'll private msg you with my contact info.