All Forum Posts by: Joseph Kirk

Hey everyone,

I purchased an off market fix-and-flip property in NJ, on March 10 using hard money and plan to list it on the market by the end of April. I'm wondering if I can utilize a 1031 exchange when I sell it to defer capital gains taxes.

From my understanding, 1031 exchanges are typically for investment properties held for rental or business use, but I'm curious if there's any way my flip could qualify—especially since I haven’t sold it yet. Would holding it for a short-term period automatically disqualify me, or are there strategies to structure the sale to make it eligible? 

I’ll likely be using hard money again for my next purchase. 

Has anyone successfully done a 1031 exchange with a flip? I know the rules that i need to purchase a new house more than i sell this one for, and within a certain amount of days. Any insights or advice would be greatly appreciated!

Thanks in advance.

 oh i see now. It was filed feb 11th. the county clerk received & stamped it on feb 24th. 

 Yes the contract did state clear title. So they are now attempting to do a payoff and continue closing hopefully next week or early the following week.

 the lis pendens was dated feb 25th. im purchasing this from a wholesaler who stated the transaction will result in clear and free title. With that statement, I just assumed all of this was their responsibility. Maybe it was me who lacked proper due diligence. However they are saying they will get it paid off within 10 days and closing should proceed once that is done.

 so its an off market deal where i am dealing with a wholesaler. no real estate agent. we were clear to close as early as Feb 24th. I couldnt close early so i stuck with my closing date of Feb 28th. and then come to find out the Lis pendens was dated on Feb 25th. So i think it was just one of those instances that just happens every here and there. or, in my opinion, there potentially was a lack of communication with the wholesaler/title and the bank. The title / wholesaler is expecting to just pay it off though and hopefully good to close next week. 

Hey everyone,

I’m dealing with a frustrating situation and wanted to see if anyone else has experienced something similar.

I was set to close on an off market purchase in two days, but I just found out that the mortgage company filed a Lis Pendens, meaning the foreclosure process has started because the seller hasn’t been paying their mortgage. The title agent has now reahced out to their attorney who will reach out to the foreclosure attorney to get a payoff amount and approval for the sale, but this "could take up to 10 days."

What I don’t understand is how something like this happens so late in the process. I thought everything was clear, and I was under the impression that title searches should uncover any issues like this well in advance. I asked the title agent, and they just said, “Unfortunately, it can happen.”

Has anyone had a deal get delayed like this? Shouldn’t the title company have caught this earlier? Was there a lack of due diligence on their part, or is this just an unavoidable situation? Will it actually only take 10 days, or potentially month(s)?

Appreciate any insight!

 Yes ive been offering first and ive been factoring wost case on rehab and then it hurts my offer price. for example i may estimate a $50,000 rehab when other investors know its only $30,000 and then i miss out on the deal because my offer price is 20k lower than it should be

 this is similar to the way I've been approaching it so far. i have a google sheets list of multiple contractors in my area. when i did my own walk through i would be very cautious with big ticket items. but my problem is i may be too over cautious and over estimate the rehab amount so i dont buy a deal and end up losing on it. then with my overestimated rehab costs, i submit an offer thats too low and it gets rejected. im in a tough spot but the more i do, the more i will learn

 What is option period? And yes what Ive been doing is doing the walkthrough with my business partner, we estimate the rehab costs, then submit an offer according to our estimated costs. However we can very well be off on our estimated costs for certain detailed things. But i guess you just learn as you go.

Hey everyone,

I’m new to fix-and-flip investing and trying to figure out the best way to work with contractors. Yesterday, I walked through a property that needed a full gut, but I didn’t bring a contractor with me, I only brought a friend who's somewhat knowledgeable in some renovations. Now, I’m wondering—should I be paying a contractor to walk properties with me before I make an offer, or should I first get the property under contract and then get bids?

I don’t want to waste time (or money) bringing contractors to properties I might not even buy, but I also don’t want to go into a deal blind and underestimate the rehab costs. How do experienced investors handle this? Do you have a few go-to contractors who will walk properties for free in exchange for future work, or do you pay them upfront for their time?

Any advice on your process for evaluating rehab costs and working with contractors would be super helpful!

Thanks in advance!