All Forum Posts by: Leo B.

Thanks for the responses.  I've reached out to my 1031 company for clarification.

Before posting, I looked at other 1031 sources online for confirmation of these expenses and not all of the sources align, hence, my sanity check here with some of the 1031 experts.

I'm in the middle of purchasing replacement property as part of a 1031 exchange and am trying to get some clarification on allowable closing costs that can be paid by the 1031 proceeds. My 1031 company sent me a list of allowable expenses but it doesn't list some of the line items that are showing up on my estimated HUD statement. Are the items below allowable 1031 expenses?

• Title commitment fee
• Title examination fee
• Deed preparation 

@Linda Weygant Thanks for the reply.  I reside in California and will require the following:

- 2016 individual tax prep

- 2016 LLC partnership tax prep (LLC is registered in CA)

- Quickbooks set up

Hi All-

I've been using excel spreadsheets and TurboTax to prepare my taxes over the years.  Now that my real estate portfolio is growing with multiple LLCs and strategies, it's starting to get more complicated.  So I'm now perusing for a good CPA that is familiar with the various real estate investment strategies to set up Quickbooks and prepare my taxes.  I have quotes from several CPAs that are across the board.  Some want to charge a monthly subscription payment with added services and some have flat fees.  If you don't mind, what are you paying for tax preparation for your real estate LLCs, partnerships, and individual income taxes.  I also have a W2 income which I believe is the easy part.

Thanks,

-Leo

Hi @Joseph Catalino

I've done BRRR in Indy from California and it is a lot more challenging than what most people make it out to be. You need to have a good "boots on the ground" team (realtor, property manager, and contractor(s)) that you trust. I felt like this was the most challenging part as it takes time to build relationships with folks that you can't meet face-to-face on a regular basis. The next biggest challenge is financing. Obviously if you have cash, you can purchase at the biggest discount and fund the rehab on your own. There are a ton of hard money lenders out there but they charge uber high fees, rates, and red tape you have to go through to get a deal done. Besides funding the deal upfront, the refinance part of BRRR took some time to complete. I have yet to find a lender that will refinance the property with an updated ARV based on the updates you have performed within 6 months. Otherwise you have to wait until the property seasons to get your money out. My first BRRR took almost a year and when you're trying to scale, the whole BRRR process can be slow going and somewhat frustrating. It is doable though.

I would start off with this simple question first: "What is your goal?"  Once this is properly defined, you can evaluate the resources available to you and come up with a step by step plan to achieve those goals.  There are ton of ways to invest in real estate and BP is a great resource to learn all the different approaches and their pros and cons.  But before all this, step one: Define your goals.

Oh the beauty of real estate...love it!  On to the next one!

Hi @Stefon Franklin Please send P&L, proforma and rent roll to [email protected] for review.

Thank you,

-Leo

Hi Shawn. I hope your New Year is off to a great start! I've reached out to Visio before. Their loan rates are ideal if you are putting a lot down. They advertise as low as 5.99% but that translates to 50% LTV, FICO of above 749, and DSCR of above 1.5. They have a pretty easy calculator on their website which will give you a general idea on rates and fees. Last I checked they were charging $3500 for anything under $100K. I hope you have better luck than me. Financing is a pain for anything under that amount.

@Steve Cook I went through the exact same thing you are now with my Midwest properties.  Are you looking for portfolio lenders only?  There is conventional financing willing to go as low as $10K.  Everything else is at least $75K min loan amount.  Visio goes down to $45K but super high rates and fees.