All Forum Posts by: Nate Wengerd

Thanks for the good advice! The flip was to build some capital to BRRRR with so I'm not ruling out another flip but that's not the plan.

Thank you for the response and if I’m understanding correctly, assuming I can even 1031 this property (I understand the problem that may arise with trying to prove the intent), I should be able to pay the lender pre tax but the cash that I would need to pull from the deal to pay back my partner’s company is subject to being taxed? That makes sense if that’s the case. Thanks again

I WILL be talking to a CPA about this but I would like to have an idea of what I’m looking for before going into the conversation. Now that we got that out of the way, In a couple weeks, my business partner and I are scheduled to close on our first flip that took over a year to complete in Ohio. To fund this deal, we borrowed $30,000 from a friend at 9% interest. This loan went into my partner’s LLC that he has for his construction company. We have roughly $30,000 in rehab costs that was paid for out of the construction company as well. Purchase price for the house was $24,000. Now that we’re about to close, the loan needs to be paid back to the lender and the rehab money needs to be replaced into the company. We’re selling the house for $119,500 and want to 1031 the profits (roughly $40,000) into our next deal. What are the tax ramifications for using money from the deal to pay back your own LLC and a private lender while doing a 1031 exchange on the rest of the profits and is this even possible? Thank you for reading this and I look forward to your responses.

I WILL be talking to a CPA about this but I would like to have an idea of what I’m looking for before going into the conversation. Now that we got that out of the way, In a couple weeks, my business partner and I are scheduled to close on our first flip that took over a year to complete in Ohio. To fund this deal, we borrowed $30,000 from a friend at 9% interest. This loan went into my partner’s LLC that he has for his construction company. We have roughly $30,000 in rehab costs that was paid for out of the construction company as well. Purchase price for the house was $24,000. Now that we’re about to close, the loan needs to be paid back to the lender and the rehab money needs to be replaced into the company. We’re selling the house for $119,500 and want to 1031 the profits (roughly $40,000) into our next deal. What are the tax ramifications for using money from the deal to pay back your own LLC and a private lender while doing a 1031 exchange on the rest of the profits and is this even possible? Thank you for reading this and I look forward to your responses.

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This calculator helped me out when I was looking.