All Forum Posts by: Matthew Wright

Does anyone acquire rental properties thru BRRRR strategy, using commercial loans for 1-4 units and does it work well? Talking with my commercial broker, it sounds like it would be a nice flexible way to build up my portfolio without having to deal with more rigorous requirements of conventional, but I'm also thinking commercial terms/rates don't really help me replace my W-2 income as quickly, since its more expensive and cash flow takes a hit.

Also, when people refer to the one percent rule of thumb, for acquiring rentals, are they referring to profit after debt service etc. or are they referring to what the property would rent for every month?

Ok great, thanks for the help guys.

Thanks for the help!

Do you need to use commercial loan and/or purchase under an entity if you are using an investors self directed IRA for the 20% down payment? or if one person was cash and the other was SDIRA (no bank at all)? Also, when buying and selling with a self directed IRA, is there a similar process as 1031, or are you smooth sailing, tax wise? I plan to get friends and relatives on board with using this method but want to educate myself on the details first. Any other tips regarding SDIRA for real estate would be greatly appreciated.

How does one manage/report income for wholesale checks issued from title co.? 2016 was my first year making money on wholesales. Do you just provide your book keeper/accountant the HUD1 or do the feds issue 1099 from info the title co provides them?

Ok. Sorry for being so vague. I was asking the question because my concern when I sell a rental property, is that I wont have enough time to reinvest the money into another property (if I cant find a good enough deal, say inside of 6 months) . I was hoping I would have a year but it sounds like I need to have a property narrowed down in 6 weeks and closed within 6 months? Any exceptions to that rule? Also, If I spend only a small portion of the funds and dont reinvest it into a new property, but give the rest of the money to the intermediary, can I just pay taxes on that small amount, or is it an all or nothing scenario? Lastly, would you consider a 60k gain worthy of 1031 after intermediary fee and headache? Would capital gain rate be that significant? 

How long do you have to hold on to capital before you have to deploy it into the next deal?

Whats the best way to calculate approx. cost of insurance for larger multifamily property when running numbers on a deal? 

Does any body use commercial finance for non commercial property? It sounds like it would make sense, if the seller is offering to finance the 20% or you dont really have great credit or if your buying the property in an LLC/partnership. Looking for feedback, the flexibility of commercial sounds like a no brainer in any of these cases, yes?

As a Realtor should you do business through a Corporation or LLC? Im told S-Corps are preferred, but havent got an explanation as to why. Any agents out there set up their own entity for liability or tax purposes?