All Forum Posts by: Owen Schwaegerle

The SLO Real Estate Investor Meetup for June is here! This Thursday, June 30th, 2022, it's going down and we've got a great guest speaker, @Graham Updegrove, lined up and he has a wealth of investor knowledge. He has experience in fix and flip, buy and hold, he's participated in syndications. You won't want to miss it!

Also, we are meeting at Benny's so we will have the Best pizza in SLO and some great drink options with a full bar. Come join us and we look forward to seeing you all this week!

Will you be there?

@Sean Ross - the current loan balance on the property is $630K. My hope is that we would be getting the property for $0 down by purchasing it subject to the existing mortgage and then having the seller carry back a second note for $770K.

Hello BP Creative Financing Wizards!

I'm trying to put together a deal to help the seller mitigate and pay less capital gains taxes up front. He's owned the property for 20+ years and doesn't want to pay a massive capital gains tax. He got the property for $505K back in the early 90s, and I think he's willing to sell it today for $1.4M. He currently has a first note on the property for $630K. The offer I proposed was to purchase the property subject to the existing mortgage and then have him carry back the remaining balance and make him monthly payments. He proposed this idea to his CPA and said it wouldn't work because he would have to pay too much capital gains taxes up front on the down payment. I told him there would be no down payment in the proposed scenario, and he said he and his CPA might not have understood that. 

Is there a way to structure a deal with subject to and owner financing where the seller pays very little to no capital gains taxes up front?

Thank you all for the unput!

Calling all investors in San Luis Obispo County on the Central Coast. If you want to network and meet more people in real estate you won't want to miss this event!

Rents are rising extremely fast in San Luis Obispo County on the Central Coast of California. Any of the rentals that have had tenants in place for several years are extremely below fair market. California passed AB 1482, the Tenant Protection Act, and implemented it into law a few years ago creating a statewide rent cap of 5% + CPI per year. That has made it a bit more challenging to raise rents, especially to keep up with the cost of doing business. This creates opportunity to come in and raise rents on your units, or help accidental landlords by purchasing their headache properties, improving them, and raising rents.

Hi @Dylan Miracle, come on out to our next real estate investor mixer. We are getting together on May 25th at SLO Public Market at 6:00 PM. We will be going through Deal Finding 101, how to find, analyze, fund, and close on deals in any market. Should be a good group of people and we'd love to have you there!

We wanted to invite you to our next real estate investor mixer. This month we will be going over Deal Finding 101. Ben Tilbury and I will share how to find, fund, and close on your next investment deal. We can draw on our experience investing in several different investments and multifamily properties to share with the group.

So many times in real estate, we hear, "I want a good deal." What is a good deal? The definition isn't going to be the same thing for everyone. We will go over how to create Crystal Clear Criteria for your next deal. That way you will know where to focus. Then we will go over where to find leads, how to analyze a deal, and how to structure it.

We will be hosting the investor mixer Wednesday, May 25, at 6:00PM at SLO Public Market. There is an upstairs area where we met last time and had a great masterminding session. Do you think you can make it? Please RSVP so we can have an accurate head count and prepare enough seating for everyone.

Real estate is a relationship business. Building relationships with people actively investing in real estate can help you invest and grow with them. We'd love to have you come to this one!

@Bill B., that is a great question! You're right about losing the step up in basis. For a buy and longterm hold strategy it may not matter.

The thought was that since Prop 19 was taking away the parent child exclusion than by transferring the property before the exclusion went away, the children would inherit the old tax basis and pay less in property taxes so they could hold onto the family property.

Curious to hear other thoughts on this.

Thanks, Bruce. That is a good question.

Yes, my main concern is if there are multiple people on title as JTWROS how would each person's tax return be affected?

If you are a joint tenant with right of survivorship on a property how does the accounting work for tax purposes? Let’s say there are five people on title as joint tenants with right of survivorship for one property. Does each person take 1/5 of the income and expenses and report that on their tax return on their schedule E?

Due to prop 19 changing in California last year, some people added their children onto their properties as joint tenants with right of survivorship and I’m curious how that would be reported for tax purposes, and how that may affect financing future properties.