All Forum Posts by: Matthew Ryan

@Royce J. - Sorry to say, no you cannot. There is no retro-activity to OZ's. 180 days from the gain of sale or the end of your partnerships tax year. 

I've set-up a fund and happy to discuss. Just DM me. 

@Stephanie Martinson - You see an opportunity and you're being aggressive in your pursuits; you can't teach that. Knowing what basket to put your eggs in, luckily, can be taught ;) Glad I was able to help. Happy to be a resource in the future should you actually land the property. 

@Kenny M. - I know better than to fight ones perception. Only thing I'll say is I would challenge you to not discount all OZ's. We set our fund up in #1 OZ according to Fundrise. There's OZ's in downtown San Jose, Downtown Berkeley, etc. Some of these are areas that are seeing institutional players move-in and while I don't like to elevate them as the wholly grail of all decision making, they also don't chase poor tenant profiles ;) 

@Gonzalo Maturino - You should look at Opportunity Zones. More flexible terms for re-investment (full 180 days) and if you keep the investment for ten years, you alleviate capital gains on all appreciation. But if that is too long and you're looking for a more ST investment you can always sell then re-invest in another OZ deal but understand your clock for the ten years starts over. 

I always like the idea of turning paper money into real money so long as the new investments I would make exceed my existing cash flow. It's a very simple way of looking at it. Others, I'm sure, will have more sophisticated ways which I encourage you to look into. But as @Dave Foster mentioned, it's a sellers market.  How long and when will it flip is TBD. It's all about the FED!

@Kenny M. - I don't pretend to know more than anyone :) You should look at Opportunity Zones. More flexible terms for re-investment (full 180 days) and if you keep the investment for ten years, you alleviate capitla gains on all appreciation. If you've got that much dry powder I think it makes since to at least consider an allocation into an OZ based investment even if it is late in the cycle. If you're looking that far out and the deal makes sense, the additional buying power (cash) is huge. Especially in a 28% fed tax bracket.

@Scott Lewis - as a past contractor who dabbled in energy efficiency in housing I'd say look at insulation, air sealing and mechanical (HVAC, water heater) upgrades prior to solar. This can drastically improve comfort, air quality as well as helping with utilities. Typically a lower payback period than solar too. Not everyday I get to bust out that knowledge on here! 

Also, at this stage, Opportunity Zones are your best bet. Even if you can't find an investment on your own, there are over 130 different Opportunity Zone Funds in the US right now that you could invest in passively. 

@Jim Klapmust - Keep in mind you can also invest your capital gain into a qualified opportunity zone investment. You have 180 days from the date of your capital gain (sale date) tp re-invest and if you keep that investment for ten years, you alleviate all capital gains on the appreciation. There is, of course, more details you should know beforehand but just want to throw that out there as an option.

@Stephanie Martinson -  Of all the options available to him that have been mentioned, Opportunity Zones are the most flexible from a timeframe perspective. However, as @Dave Foster said, your issue isn't with the options available to him your problem is trying to understand and tweak the psychology of a seller and owner who's ideas of running a business do not sound similar to your own. It's an easy psychological rabbit hole to get into when you're first starting, and you see that asset that you KNOW you can make better. I've done it dozens and probably fastly approaching hundreds. I would find the most straightforward solution, offer it up to him, keep pounding him for 30-60 days until he tells you to buzz off or he breaks down and takes a hard look at it. But be aware of the opportunity cost of the time and energy you'll put into it vs. the other deals that are getting done with motivated sellers. Lastly, be honest with yourself that this deal is the right deal for you and you can be the one to turn it around. That is not an easy task.

@Jinglei Cui - My recommendation is to first educate yourself on what makes a good deal a "good deal". Most focus on cap rates until they realize the investor lingo of IRR (internal rate of return), cash on cash, equity multiple, etc. I'd reommend linking up with some pros who have been doing this for a while and understanding what happens "behind the curtain" before becoming aggressive in any particular market (especially CA).