All Forum Posts by: Kyle O'Connor

My immediate need is someone with experience with Historic rehabilitation tax credits.

I own (with partners) a building on the National Register of Historic Places as well as the operating business utilizing the building. We've completed a complete rehab and with the help of an architect, the Part I and Part II, now we're filling out the NPS Part III. I Would like to define the QRE's now instead of trying to do it next year, in crunch time. We have a tax preparer that we've used in the past, but this is way outside their capabilities. 

Would like to develop an ongoing relationship with a tax expert who can we can work with on strategy and optimization, not just compliance for both the operation Corp (currently sub-chapter S) and the real estate entity (LLC).

If you don't know what a part III or QRE, your not the person (sorry just being honest)

Has anyone been told No when trying to setup a bank account for their Self Directed IRA owned LLC?

My bank for decades now said they aren't willing to do it but wont tell me why. 

ISO- Anyone with experience factoring or securitizing future incentives including lump sum Historic grants, Local Sales tax rebates and Federal Income tax credits

Abbreviated Background - I am redeveloping a historic property. We have owned the property since 2017, have building permits approved at the local, state and federal levels. Due to the historic status of the building the project is considerably more expensive than initially expected and we have struggled to find a bank that will lend on the project even under the SBA 7a and 504 loan programs. Total financing capital need is $3m. We have $1m in incentives from the local and federal levels, but they are in the form of tax credits and historic renovation grants that do not come in until after the project is completed and/or up to 10 years later. I am looking for a way to securitize OR "Factor" these future cashflows OR any other creative way to monetize these incentives during construction. 

Reward - Reasonable compensation and dinner on me in NOLA during #BPCON2021 

* This is a complex deal and I am looking for guidance on options. If you have experience with anything like this DM me and I can provide significantly more information. 

Investment Info:

Other commercial investment investment in Tinley Park.

Purchase price: $415,000
Cash invested: $3,600,000

The Banging Gavel Team purchased the Vogt House, the only Historic Landmark in the Village of Tinley Park, IL. Originally a 3 story (+ baesment) residence built in the 1870s the Vogt House. The Banging Gavel team will take this amazing property that is at the center of the downtown district and turn it into a Brew Pub complete with a brewery in the basement, 140 seats inside on the first and second floors and an additional 140 seats outside in the beer garden.

Bangingavel.com

What made you interested in investing in this type of deal?

Banging Gavel Team needed a location to launch our brewery and knew we wanted to find a location that was unique, where we could make an impact and most importantly control the real estate.

How did you find this deal and how did you negotiate it?

Business Partner lives nearby and saw it regularly. He knew it was vacant and found out who the owner was. Negotiated from an asking price of $800,000 to $415,0000

How did you finance this deal?

This deal is very unique because we have five different forms of capital.
Founders Equity
Equity investors
Private note investors
Village incentive
SBA Bank Loan

How did you add value to the deal?

Gutt Rehabbed a run down vacant bank owned property and turned it into the centerpiece of the village's downtown.

What was the outcome?

Still working on the Construction, but once compete we will have a fully operational Brewpub

Lessons learned? Challenges?

- Don't buy a Historic Landmark
- Construction estimates mean nothing until they are indicative bids

Investment Info:

Other commercial investment investment in Tinley Park.

Purchase price: $415,000
Cash invested: $3,600,000

The Banging Gavel Team purchased the Vogt House, the only Historic Landmark in the Village of Tinley Park, IL. Originally a 3 story (+ baesment) residence built in the 1870s the Vogt House has had many owners and lives. The Banging Gavel team will take this amazing property that is at the center of the downtown district and turn it into a Brew Pub complete with a brewery in the basement, 140 seats inside on the first and second floors and an additional 140 seats outside in the beer garden.

Bangingavel.com

What made you interested in investing in this type of deal?

Banging Gavel Team needed a location to launch our brewery and knew we wanted to find a location that was unique, where we could make an impact and most importantly control the real estate.

How did you find this deal and how did you negotiate it?

Business Partner lives nearby and saw it regularly. He knew it was vacant and found out who the owner was. Negotiated from an asking price of $800,000 to $415,0000

How did you finance this deal?

This deal is very unique because we have five different forms of capital.
Founders Equity
Equity investors
Private note investors
Village incentive
SBA Bank Loan

How did you add value to the deal?

Gutt Rehabbed a run down vacant bank owned property and turned it into the centerpiece of the village's downtown.

What was the outcome?

Still working on the Construction, but once compete we will have a fully operational Brewpub

Lessons learned? Challenges?

- Don't buy a Historic Landmark
- Construction estimates mean nothing until they are indicative bids

@Jeff Burdick

How do I get updates or notifications from this CHICAGO forum?

@Gani Veer

If you think the deal isn’t worth holding CUT your losses. Please don’t make me give you the cost accounting analysis.

Also based on your numbers I would cut my losses.

Cutting your losses sucks, it’s not fun, no one likes to do it, BUT it is (seems like) the right business decision.

P.S. follow your gut

I may be a CPA BUT I’m not your CPA, so this isn’t tax or other financial advice.

@Elliot Rudmann

Signed the petition, I hope it happens in Chicago, BUT with this towns politics you never know.

Elliot - I’m in Chi, and interested to connect, let me know if you’d like to get together in person

@Kirk Perecich

Check out BiggerPockets.com/show64 there is a discussion about Fannie Mae Home Path Program. Sounds like it’s a 10% down, investor program.

I haven’t used it, just happened to listen to that episode their week.

Have you contacting the Alderman they can single handedly help or hurt your project. They also "know what the neighborhood wants". Like anyone they're more willing to work with and help people that contact them early instead of after the fact.