All Forum Posts by: Jon Jones

Yeah a multi family property. Our plan is to purchase a multi family portfolio, in some circles called commercial. We plan on getting into 6-10 doors on our first deal, if we can find someone that is willing to go low enough for us. We Definitely  we find someone, but it’s going to take some scouring of the market. 

Thanks for your help Larry, this is the Last big lump of cash we have left and we def don’t want to mess it up over a restaurant. 

Larry you’re right. We’ll buy the commercial residential portfolio instead. I don’t want the coffee shop to put such a draw on our real estate investing that it inhibits future growth. If the coffee shop is still around after we have a feeble cash flowing portfolios then we’ll revisit the commercial space. Thanks guys. 

In our minds we would never want to buy commercial property that isn’t residential, but we also don’t want to suffer the loss of our coffee shop either. The commercial property is in a decent area but we wouldn’t buy it otherwise. It’s already fixed up as of pretty recently, but the owners of it would probably give us a sweet deal, most likely. We have a good relationship with them. 

I get looking at it like an actual good investment, and our coffee shop still isn’t a good investment, it’s been a liability since the beginning. 

Hey guys, we’re getting ready to have a decent amount of cash that we’re planning on buying a property with. We also own a couple of coffee shops. We have been thinking about buying the strip mall one of our shops is in, and then do a cash out refinance to start buying residential properties with it. Our overall goals are to have a bunch of free time to be able to travel, and also start building up wealth for our 4 children. Is it a good idea to purchase a commercial strip mall first, and then transition into residential (where we want to invest.)? The reason we want to purchase the strip mall is because our coffee shop struggles to make leaps forward because the rent is so high, but if we owned it, we could make the rent as low as we want but still retain the equity to purchase other properties with. Or is a better idea to just invest in residential first, and then use the cash flow from that to help the coffee shop? The strip mall appraised for $358k The residential portfolio appraises for roughly the same. It would be a cash purchase.

1: can we use a 1031 exchange on an international property sale (Mexico) that is debt free? (Around $300k) -if we can, how does that process work? I don’t want to mess it up right from the get go. -if we can’t, how do we avoid paying a bunch of taxes on it since we plan on spending all of it on single family homes. -if we can use a 1031 exchange, how do we buy properties and spend money on value add without violating the 1031 policies? Sorry guys, this one is a pretty deep one, we are just beginning, but we are starting with cash. 2: (scenario) should we use all of the cash on 10 properties and then using the BRRR strat to then stack properties on them? Or should we buy 30 or 40 properties partially mortgaged? (As in a group investment deal or a bunch of properties from one person)

1: can we use a 1031 exchange on an international property sale (Mexico) that is debt free? (Around $300k) -if we can, how does that process work? I don’t want to mess it up right from the get go. -if we can’t, how do we avoid paying a bunch of taxes on it since we plan on spending all of it on single family homes. -if we can use a 1031 exchange, how do we buy properties and spend money on value add without violating the 1031 policies? Sorry guys, this one is a pretty deep one, we are just beginning, but we are starting with cash. 2: (scenario) should we use all of the cash on 10 properties and then using the BRRR strat to then stack properties on them? Or should we buy 30 or 40 properties partially mortgaged? (As in a group investment deal or a bunch of properties from one person)

Yeah I agree with these guys, I’m not trying to be super wealthy, and my happiness is not defined by how much money I make. However, my happiness is defined by how much I’m providing for my kids, and having some legacy wealth to pass on to them makes me very happy.

Legacy wealth. My wife and I grew up really poor and we don’t our kids to ever experience that. Plus travel is nice too.

Question: Since I don’t want to put a bunch of money into a nice farmhouse like my wife wants because it will be a liability that We won’t have the time to maintain, can I do this: Start an LLC specifically to put a farmhouse in. Turn that property over to our rental management company to maintain, and then pay rent to that LLC. Of course it will be an under performing asset, (strike that, I mean liability) since we aren’t going to charge ourselves $6k per month in rent. What are the tax bennies, if any, and is this a stupid idea? Thanks for your answers guys!