All Forum Posts by: Joseph Bagley

Providing you are either a veteran or actively serving it CAN be used for first time home buyers, but generally can be used for any residential property to include properties up to 4 units.

You can also get multiple VA loans however you have to live in each property for at least a year before you go for another. (Owner occupied)

And another stipulation is total VA loans can't exceed an amount ~500K generally as a sum of all of your VA loans. I don't have the exact number but ~500K total VA loan would be a good number to use as a guideline.

Hope this helps!

True... I used a VA for my first loan. Refi'd with a IRRL (?), then HELOC and not refi'd into a coventional load. Now my VA free again. Here in Cali $680k is max. Like @Jorge said you can have up to a 4 unit as long as you live in it. Look into VA Vendee loans too for us Vets for investing in non occupied.

@Jorge Great buy man! Plus 1 for the Vets! You encourage others!

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Wow that's awesome. Any before and after pictures? Just curious. I'm looking to do my first flip next year.

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Originally posted by @Lynnette E.:

How many brothers do you have?

The Annual Gift Tax Exclusion. The annual gift tax exclusion is $15,000 for the 2019 tax year. (It was the same for the 2018 tax year.) This is the amount of money that you can give as a gift to one person, in any given year, without having to pay any gift tax.

So she can gift each of you $15k a year. She can also gift each of your kids $15k a year. Your kids can gift that back to you, your brother's kids can gift theirs back to your brothers. Same for spouses. Have mom gift you'al in equal shares this Christmas, then again on New Year's Day and you likely have the value of a house, and if not, have her gift the rest in 2021.

File a new deed showing the new ownership mix by percentage.

Then you'al each can gift $15k back to mom until she has $100k minus the rent gifted to her.

Wow. This indeed is very savvy THANKS for the input. I’ll look into the second response u posted for GA since she and my brothers are all there.

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I stay active for America, hahaha... I'm in the Navy got to stay fit.

No... but for real I started mountain biking this year. Love the performance and customizing life of cars and car shows. However slash comma I sold my last "sports" car and now I'm more "luxury" haha.

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BP,

I thought I had this all thought out but I found out that I know nothing like John Snow :-D.

Soooo... my Mom agreed to give me and my brothers her 1st home, which is paid off. Intent is to pay her $100k by using the equity to flip or make deals to total $100k for her golden years within 1-2 years. I have one brother still living in the home and will continue making payments to my Mom until we get the $100k.

She was informed by our CPA that their is a gift tax if she just gives us the home.

What are some ideas from you savvy investors to acquire the property without too much of a negative tax hit? Keeping in mind the end goal after we acquire the home.

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@Laurence Obi

Great man for jumping in there. I feel you. Profit is profit when your main goal was to get your first out the way to learn the ropes and not lose money. Hopefully I’ll be right behind you soon with the first deal and not lose money. I’m from the A, as well, but residing in San Diego and will start looking in ATL very soon.

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Originally posted by @Scott Passman:

@Joseph Bagley Have you looked into buying her house via owner financing? Since the home is virtually paid off, you could arrange it so that you purchase the home from her where she finances the home and essentially acts as the bank. You would make monthly payments to her based on the arrangement you set up (interest rate, loan term, etc) and this would allow you to take ownership of the home while allowing your mother to collect monthly income that wouldn't come in a lump sum and thus incur a higher tax percentage. Plus, depending on how you structure the financing she could make more on her home with the accrued interest and you would win by owning the property and getting tenants in place to pay off the loan and ultimately provide steady income for your mother.

If your brother is going to be living in it, make sure you don't skip him signing a formal tenant lease that clearly spells out the expectations and consequences. Renting out to family can be dicey sometimes, you want to make things as clear and written out as possible.

She doesn't want monthly payments. She prefers one and done (she's been through a lot pass several years). My brother that lives there already he name will be on the deed of the home as well. Weird situation...he's been living there paying my Mom last 1-2 years. This home was suppose to be an inheritance, but with the life changes she bought another property. The brother living there would like to own it but can't pull it off and my 2nd brother pretty much "going with the wind" on the decision to have his name on the deed and loan.

I'm just researching is it better to buy the place now for the $83k we need or payoff the $2k then refinance and pull the equity for $83k.

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Hey BP,

Been reading, listening and now I have an opportunity to buy some RE. The property is less than $2k from being owned out right. My mother wants her sons (me and my brothers) to take it, but not without taking care of her first. Mom has another house bought that she lives in. I'm the son that's be rambling about building a RE Empire. But now that it's my time to swing at RE.... how do I do this best?

I need to give my mom about $70k so she enjoy her golden years without worrying of bills after retirement. My brother currently lives there and pays my mom on the current remaining mortgage but can't get a loan on the property. I have enough money to pay of the $2k now. My mom wants to avoid paying taxes her tax attorney says if I buy more than $90k she'll have to pay taxes and she wants to avoid that. Aaand there's a $13k bill left to pay from getting new windows installed. We believe property value to be about $120k-$140k.

Should I pay the $2k then have her sign the house over to us (me and my 2 brothers) then cash-out refi? Get the $83k needed to take care of the debts.

OR buy it with my brothers for $83k then give her what she needs?

Looking into the future I would like to either get a roommate in their with my brother. Or use the equity to start other deals down the line.

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Originally posted by @Richard Dinh:

Hello Biggerpockets Community!

My name's Richard, from Long Beach, California, and I'm ready to learn more from this awesome forum I recently came across. I am currently a manager at a family owned grocery store and looking to purchase my first property within 1-2 years.

I'm interested in investing SFR real estate out of state and also multi-units. As you know all know, its expensive out here to start out unless I aim towards markets around San Bernardino area. My strategy would be to buy and hold and eventually get into the BRRRR strategy. I don't have the capital I need to start, but I am looking into creative financing.

Moreover, I'm immersing myself in real estate books like Rental Property Investing, Invest w/ no money or little money down, and Long-distance Real Estate Investing, and also listening to "Biggerpockets" podcast during my lengthly commute to work. So far the markets I am interested in are Indianapolis, Kansas City, MO, Huntsville, and Birmingham.

I would appreciate any advice or knowledge towards my way. Thank you all!

Welcome, we have similar goals! I have those same real estate books myself to go through.

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All Forum Posts by: Joseph Bagley

Joseph Bagley has started 13 posts and replied 47 times.

Post: Creative way buy take ownership of property?

Post: First deal, $250K in Chattanooga, TN , what do you all think?

Post: My First Flip Project in Peoria IL

Post: Creative way buy take ownership of property?

Post: Do you have hobbies outside of your RE Investing work?

Post: Creative way buy take ownership of property?

Post: MY FIRST REHAB WENT A BIT TOO WELL. CONCERNED!!!

Post: Up to bat. RE coming my way, but which way to swing

Post: Up to bat. RE coming my way, but which way to swing

Post: New member introduction from CA