All Forum Posts by: Josh Myrick

Quote from @Chris Seveney:

@Josh Myrick

You technically can but if you start the non profit typically you cannot be an employee or make $ from it, and profits should be reinvested in more housing.

If your goal was to profit in any way, the answer is no

 Yea, the goal is no profit or it be reinvested in more housing or improving the current rentals for better living conditions for tenants. I explained a little more detail after discussing with some other investors. Apparently my initial post was a little confusing. 

Quote from @Josh Myrick:

Quote from @Kory Reynolds:

What are you getting at here? As in some loophole that allows investment in real property through a tax exempt entity?   Anyone who contributes money here does exactly that - makes a charitable contribution and gets no money in return.  If they are receiving something in return, it isn't a charitable contribution.  

You don't need to start a 501(c)(3) to start investing in real estate and rent them out at FMV to first responders. If the rents end up being taxable in the organization, they'll actually be subject to maximum income tax rates very quickly - much faster than if you just did this personally.

There are groups now starting with "socially responsible" investing - effectively a standard partnership/syndicate that is "investing for good" - that would likely be a better structure to avoid 501(c)(3) headaches in a for profit venture.  

I don't think too many donors would be excited to start donating to a non profit if they find out the target audience is still paying FMV rent, and the person running the organization is collecting FMV management fees in his own pocket. The question at that point is what are you really providing to the community that would attract donors?

 Hey Kory, Thanks for the response. 

So no, not looking for a loophole to make money through a charitable contribution. I put two ideas into one post which has gotten some confusion on other platforms. That was mistake. I will discuss them separately in the future. 

The one idea I was asking for help with was if its possible to invest in real estate with a 501C3. I understand it would be a completely charitable contribution and that's what I am looking for. I have trying to find ways to give back to the community and while I would love to increase my monthly tithe percentage but that's not currently an option. So I thought of finding investors that would help me buy local rental properties through a 501C3 so they get a deduction and then I can manage it as a charitable contribution or hire another PM and they get a charitable deduction.

But the goal would be to buy property and rent it at "Fair Market Value" lol and this term also got some flak in other groups. But my idea of fair market is essentially low income I guess after talking to some other investors that responded to my post. Because in my opinion todays rental rates aren't fair but that's a whole other discussion. So after discussing with others the point of the 501c3 would be to rent to low income families or disabled veterans. 

I have never heard of socially responsible investing groups. That is definitely something I will look into. This was just the first thought that popped into my head and I wanted to pursue it until something better came up or it was not possible. 

 The second idea I had was some other foundation or 501C3 or whatever it needed to be. It would collect donations that would go into a fund that could then be used as down payment assistance for qualified first responders to buy their first home. I used to be law enforcement and know how hard it is to own a home on first responder pay so I thought it would be cool to help that small area of the work force. 

Quote from @Kory Reynolds:

What are you getting at here? As in some loophole that allows investment in real property through a tax exempt entity?   Anyone who contributes money here does exactly that - makes a charitable contribution and gets no money in return.  If they are receiving something in return, it isn't a charitable contribution.  

You don't need to start a 501(c)(3) to start investing in real estate and rent them out at FMV to first responders. If the rents end up being taxable in the organization, they'll actually be subject to maximum income tax rates very quickly - much faster than if you just did this personally.

There are groups now starting with "socially responsible" investing - effectively a standard partnership/syndicate that is "investing for good" - that would likely be a better structure to avoid 501(c)(3) headaches in a for profit venture.  

I don't think too many donors would be excited to start donating to a non profit if they find out the target audience is still paying FMV rent, and the person running the organization is collecting FMV management fees in his own pocket. The question at that point is what are you really providing to the community that would attract donors?

 Hey Kory, Thanks for the response. 

So no, not looking for a loophole to make money through a charitable contribution. I put two ideas into one post which has gotten some confusion on other platforms. That was mistake. I will discuss them separately in the future. 

The one idea I was asking for help with was if its possible to invest in real estate with a 501C3. I understand it would be a completely charitable contribution and that's what I am looking for. I have trying to find ways to give back to the community and while I would love to increase my monthly tithe percentage but that's not currently an option. So I thought of finding investors that would help me buy local rental properties through a 501C3 so they get a deduction and then I can manage it as a charitable contribution or hire another PM and they get a charitable deduction.

But the goal would be to buy property and rent it at "Fair Market Value" lol and this term also got some flak in other groups. But my idea of fair market is essentially low income I guess after talking to some other investors that responded to my post. Because in my opinion todays rental rates aren't fair but that's a whole other discussion. So after discussing with others the point of the 501c3 would be to rent to low income families or disabled veterans. 

I have never heard of socially responsible investing groups. That is definitely something I will look into. This was just the first thought that popped into my head and I wanted to pursue it until something better came up or it was not possible. 

I need assistant or advise on the feasibility of one of my crazy ideas. Or what seems crazy to me.

Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

Essentially, people could donate money and get tax deductions and then that money could be pooled to buy property, fix it, rent it and pay a manager.

I’m assuming it would be similar to a self invested Ira. That all revenue generated would have to stay in the company and couldn’t be used for personal things.

I’m trying to find a way to use my God given talents and the only one I seem to have is in Real Estate hahaha. I’m not amazing at it but not bad at it either and would like to find ways to give back.

A read some articles that some rents may still be taxable which is fine. All money would stay in the company for repairs, management, buying new properties, and paying taxes if necessary. The main purpose would be to pool money to purchase properties and rent at fair market value. Then essentially repeat the process.

My original thought was a 501c3 that could use donations to help first responders buy their first home. Like down payment assistance.

Would love some advice if anyone has any experience in this.

I need assistant or advise on the feasibility of one of my crazy ideas. Or what seems crazy to me.

Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

Essentially, people could donate money and get tax deductions and then that money could be pooled to buy property, fix it, rent it and pay a manager.

I’m assuming it would be similar to a self invested Ira. That all revenue generated would have to stay in the company and couldn’t be used for personal things.

I’m trying to find a way to use my God given talents and the only one I seem to have is in Real Estate hahaha. I’m not amazing at it but not bad at it either and would like to find ways to give back.

A read some articles that some rents may still be taxable which is fine. All money would stay in the company for repairs, management, buying new properties, and paying taxes if necessary. The main purpose would be to pool money to purchase properties and rent at fair market value. Then essentially repeat the process.

My original thought was a 501c3 that could use donations to help first responders buy their first home. Like down payment assistance.

Would love some advice if anyone has any experience in this.

I need assistant or advise on the feasibility of one of my crazy ideas. Or what seems crazy to me.

Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

Essentially, people could donate money and get tax deductions and then that money could be pooled to buy property, fix it, rent it and pay a manager.

I’m assuming it would be similar to a self invested Ira. That all revenue generated would have to stay in the company and couldn’t be used for personal things.

I’m trying to find a way to use my God given talents and the only one I seem to have is in Real Estate hahaha. I’m not amazing at it but not bad at it either and would like to find ways to give back.

A read some articles that some rents may still be taxable which is fine. All money would stay in the company for repairs, management, buying new properties, and paying taxes if necessary. The main purpose would be to pool money to purchase properties and rent at fair market value. Then essentially repeat the process.

My original thought was a 501c3 that could use donations to help first responders buy their first home. Like down payment assistance.

Would love some advice if anyone has any experience in this.

Thank you! I won’t be able to even start until next year. Building my brokerage business so I’ll have more cash flow to build.  Been looking at land and debating on if a septic is doable with a quadplex in these mountains would need one rated for 8-12 bedrooms. But I assume it will be more expensive and harder to find land on city sewer and water.

The goal is next year get land and the year after start building. 

No loan options but Iv been really interested in modular multifamily and would love to know which company you are using and any other details your willing to share.

I would love a modular triplex or quadplex here in the Asheville area.

Quote from @Jaron Walling:

@Josh Myrick That's great and I figured you would be closer to $500k so that's not bad! We have glanced at properties around Asheville and Weaverville but we're not in a position to buy. Our experience is with distressed deals and $400k can go a long way in our market.

We have stayed in a few STRs in Asheville and they were all ADUs. It seems like the only way to own STRs within the city limits. 

Yea there are a lot of restrictions for StrS in Asheville. But there is an active court case to block their ability to ban them. So here’s hoping. But 400k lately basically guarantees distressed properties around here. It’s hard to find good investments right now.

Quote from @Jaron Walling:

Quote from @Josh Myrick:

We also started a property management company for STRS and are currently managing 8. I was able to quit my full time job back in April. 

 Congrats man! That's pretty amazing. Your market supports it! 

If you don't mind me asking what was the original cost to build the house in Fairview? We have wanted to break into the market but it's so expensive. We have vacationed down there about 7 times and got married in Asheville! We bicycled from the city to the top of Mt. Mitchell earlier this year. Good times. 

That’s a heck of a trip. We bought a 90% complete house from a builder. We own another of their homes as an LTR and they are pretty nice. They are cookie cutter but they use nice materials. It was 399k for a 3/2 1404 sq ft in aug of 2022. Bought almost the exact same house from builder with the same materials and finishes for 299k in dec of 2020. Lol. It’s not killing it but we are making money. It was mainly bought as a house for my grandparents to come visit grand babies and turned into an STR: its a tight margin market right now even for STRS.