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All Forum Posts by: Leslie Pappas

Leslie Pappas has started 1 posts and replied 820 times.

Post: Divorce - What Should I do With My Funds?

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Daniel Pitner:

I'm going through a brutal divorce. 

Besides the heart break, there is a lot of stress associated with what to do with our properties. 


Right now my spouse wants to sell everything and split the equity. After realtor fees and capital gains we are looking at about each getting $280k. 


However, I would like to keep property.

My proposal was we each get 2 properties and have full autonomy on what to do with them. This way I avoid losing money on realtor fees in a forced sale AND I can assume some of our low interest rate loans (confirmed by my bank)

Which of the following would you do? 
1) cash out and split

2) Keep the property with lower equity and a 4% interest rate. Cashflows about $500 per month. If I do this I would get about $180k in cash. 


My other question is how would you invest the cashout? I know it's not a ton of money but I need to start rebuilding. 


Hi Daniel, I know this is a late rely but sorry to hear about the divorce. Yes you want to be aware that if you've owned a rental property for a significant period of time, when you sell, investors can potentially end up paying somewhere between 30-40% in taxes. I help investors everyday defer those taxes and reinvest the proceeds. Check out my blog if you get a chance. 

https://www.biggerpockets.com/member-blogs/7993-cashingin-tax-free-1031-exchange-and-dsts

Post: Newly empty nester venturing out to see how we like it

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300

@Debbie Palmer  It appears you are on the right track for your 1031 exchange. Inventory being such a problem you may want to consider having a back up plan if you are unable to find a replacement property within the 45 day identification period. There are different real estate investments available to accredited investors that could be a good option for a back up. They provide you with hard real estate, but can also give you some diversification. Something else to possibly consider, happy to answer any questions. 

Post: Exploring mult-family market in Columbus

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Russell Sherman:

I will be selling a high gain single family residence in Los Angeles in the next 12 months or so and am considering putting part of the rollover into a multi-family in Columbus, where I now live.  Would anyone be willing to meet or talk to go over the market, what to expect, etc.  I live part time in Mexico but will be in Columbus for the next several weeks.


 Hi Russell, 

There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com

Post: Condos- Good for rental properties??

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Chris Plemeris:

Hello-

New to this site, but have eard unbelievable things and excited to get going. Was wondering about condos. It seems like, for the time being, they are the last affordable thing in growing and popular cities. Do people have any insight on condos as an investment? Good for renting out? Good for appreciation? Any advice? Tips/Tricks? Thanks!


 Hi Chris, 

There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com

Post: Multi family investment markets $500k

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Jens Tutzauer:

Hello all,

looking for some advice and opinions here in regards to potential investment markets for multi family properties.  I have about $500k in a 1031 exchange account that I'd like to invest. Priority is obviously cash flow and gross monthly rent should be somewhere in the $4500-5000 range.  Currently looking at Albuquerque, Indianapolis and Nashville but open to other ideas. Not looking for a major fixer upper.  Thank you all in advance for your comments and advice.

There plenty of opportunities out there, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com

Post: Is it a good or bad idea????

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300

Hi Alex, we have investors making straight cash investments into funds, which are portfolios of properties. This might be something for you to look further into based on the goals you’ve shared.

Post: LLC or S Corp or Umbrella insurance?

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Josh Edelson:

Thanks Megan and Kevin - 

Megan - Very interesting! Does the DST only provide risk mitigation/protection or are there tax benefits/savings also?

Hi Josh, please check out this blog for more on DSTs. Basically theyy are hands-off, institutional grade real estate investments, and they allow you the option to diversify. You can buy into institutional grade $50-125M projects with as little as $100,000. Professionals with decades of experience do all the heavy lifting for you. You get potential cash flow, tax shelter and appreciation. Loans are non-recourse.

https://www.biggerpockets.com/...

Post: 1031 Exchange Process

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Isaac Lane:

Hi All,

I'm looking to do my first 1031 exchange and want to see if someone could explain the process of executing it and what the typical cost is? Thanks!


 Hi Isaac, hope this helps

https://www.biggerpockets.com/...

Post: Hey! New out-of-state investors from LA County!

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300

Hi @Elias Shanaa, my recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com

Post: Can you 1031 Exchange into a syndication as an LP?

Leslie Pappas
Posted
  • Professional
  • San Francisco, CA
  • Posts 876
  • Votes 300
Quote from @Brian Kantor:

@Dave Foster and @Ronald Rohde, my parents are the only members of the LLC that owns the property. They each own 50%, so any move would be the two of them together.

@Jon Taylor, you are the second person who mentioned this. I did some digging already, and this seems like a more compelling solution than a syndicate for a few reasons:

1) This way they don't have to keep rolling over into a new syndicate every 5 to 7 years (or get the tax burden at that point)

2) The tax efficiency seems to be strong for them as they pass ownership to their heirs after they pass away


 Hi Brian, feel free to check out this quick blog on DSTs, happy to answer any questions.

https://www.biggerpockets.com/...