All Forum Posts by: Mark Perlberg

Glad you're thinking about depreciation recapture. A lot of people I meet don't know that this exists! If there's bonus depreciation, then there are items we recognized as being non-real estate, and therefore we cannot exchange them for real estate in the 1031, so there is a possibility for depreciation recapture, and that would be at your ordinary income tax rate (25% deprecation recapture for real estate). But if you're rolling the proceeds into another property, you'll like create enough losses to offset the depreciation recapture. Passive losses in the year of the sale will also offset capital gains and depreciation recapture. 

I work with an international attorney to structure partnerships with foreign investors. Reach out if you're serious about doing a deal. 

I like the idea of finding a cash partner. If you network enough, you'll find plenty of people with cash to park into real estate that are eager to get in the game, but don't have the time and know-how. That's where you come in. This may open the door for future deals too. 

 Make sure you have a competent attorney write the partnership agreement. If they are going to be a passive investor while you do all the work, this may be treated as a security under the rules and regulations of the SEC. This isn't anything too scary, but you just want to make sure you have the right supporting professionals to make sure you're doing everything right.  

@Sid Desai, here's a site that wholesales deals in Atlanta: https://keygleehomes.com/city/Atlanta. Also, join local facebook groups for real estate investors to keep your finger on the pulse of what's available. There are several in Atlanta that are easy to find and pretty active. There are tons of other ways to find listings too (mailing campaigns, cold calling, driving for dollars, etc.). Hope that helps!

Charlotte's a fantastic place to get started. Definitely meetup w/ Patrick Menefee and his group. He's actively closing deals and always looking to learn and help other people. You might see me there. If you're looking for some resources to help record your expenses, reach out or go to my site where I provide some excel templates for documenting and calculating your mileage and expenses for your investments. Dan Hanford is a great resource too, mostly in syndication space.  

I've heard that you may find value in investments where housing code allows to you expand the property to add new units. 

I know of a way you may be able to save on your taxes by doing this through Real Estate Deconstruction: 

https://www.washingtonpost.com.... Instead of trashing it, donate some of the materials and recognize the write-off to charity at fair market value

Build your network and find cash partners. Lots of people looking to invest but not enough time to find the deal. Alot of people start off by taking advantage of the 3% owner occupied loan from a conventional bank loan, then moving out and renting it. 

I've seen it done. However, the loan may offset your debt to equity ratio to the point where you will no longer qualify. Maybe talk to a different lender and/or bank. 

I leverage a cleaning service to help with looking over everything. If you can't find someone local that specializes, checkout Hux and Turnover BNB. They can manage turnover and also fill you in on the condition of your property. 

Also, you may want to evaluate your level of involvement from a tax perspective. You might receive greater usage of your write-offs if you materially or actively participate in the rental.