All Forum Posts by: Ken Naim

@Chuck Masters what county in Florida? I moved properties into an llc in palm beach county and there wasn't a fee. They said to move it out would incur a fee but it was a fraction of a percent.

7% doesn't make much sense to me. Maybe 0.7% and out of an llc not in

@Lior Golan keep looking a contractor that you can pay by the project. Say you need flooring, electrical and plumbing done. Give 50% down of the flooring cost when flooring starts, balance when it is done. Then move on to electrical 50% to start, 50% when its done, and finally the same with plumbing.

@Jaime Mack this bill may not pass in its current form but some of his tax and spend policies will in one form or another. We still have 18 months till the midterms.

1031 were created because large assets owners wouldn't sell their properties because of the tax implications. Why give up the cashflow of a $10 million asset when between depreciation and appreciation you'll be taxed $3 million on 7.5 for example and be left with cashflow on a $7 million asset.

Also remember that the $500k exclusion is unlikely to be indexed to inflation.

As to people adjusting to the new normal, it is correct but that doesn't mean that'll have zero effect on real estate.

Covid effects are already present. Suburb housing prices are up, dense urban prices are down, large office and retail are down, industrial is hot.

Eliminating 1031 will reduce real estate returns and some money will be moved to other asset classes. Less asset turnover will hurt the economy due to reduced capital improvements. Overall a net negative for landlords tenants and the government.

you take a home equity loan, even if it is for investment purposes, heloc, some banks offer construction loans, hard money, typical refinance with a credit union or portfolio lender. Pretty much all options are on the table. For $40k, even credit cards are an option if you have good credit and high credit lines. it can even be at close to 0% for 12-18 months with the right card. Some of the crowd funding sites will allow give personal loan of up $35,000 for renovations at various interest rates depending on credit. such as upstart, sofi, credible, lending club etc.

It'll all depend on your personal circumstances, but there are a lot of options.

@Jw Johnson Welcome JW

@Alecia S. In Florida for example, bar contracts always say on or before but the statutes always allow an extra 30 days. Closings on Friday afternoons are always at risk as staff leaves early, wires are delayed etc. Best practice is not to schedule closings on Fridays afternoons if the closing date is critical.

I doubt any court nationwide would side with you if you backed out now. The court expense alone isn't worth it.

@Donggie Hong Remember you need money for the rehab as well as living expenses during the rehab. I'd buy in your local market, around 200k or atleast in a cheaper market than Chicago. Join meetups in the area, find friend or mentor that can guide you to trustworthy contractors and get started.

@Christian Leon multifamily is the way to go. One or two four plexes or one 8-10 plex can get you to the $2k a month goal. Once you have that under your belt, you'll have even more options available.

@Aaron Rodriguez welcome Aaron. Get started while you learn. The goal of your first deal is not to hit a home run but to get you in the game. Your first few deals are going to be your practical education while earning some money. Then you can scale.

@Thomas Weidner Yes, south Florida is getting 1,000 new households per day. Prices are up, selling 10% over full asking price in days.