All Forum Posts by: Matthew S.

What is the best way to delay or avoid paying depreciation recapture tax? It is my understanding that when you sell a property, you are required to pay back all of your accumulated depreciation at a rate of up to 25%. If you do a 1031 exchange that will delay the tax. If you pass it on as an inheritance at your death, your heirs will be able to start a new cost basis. Does that include deprecation expense? If the property is in an LLC, would the heirs be eligible for the new cost basis? or would the entity have to pay that tax? How are most of you dealing with this hefty tax on a sale?

Joel,

Thanks for your response. Very helpful. I am definitely willing to divulge that information once I find the right broker. 

Hello,

Does anyone know a good commercial real estate broker in Charlotte, NC that specializes as a buyers agent for NNN and retail properties? I have tried to find reviews and referrals online, but have not had any luck. Also, where do most commercial real estate investors find there deals? I have looked on Loopnet a little bit, but most of the listings seem stale. Please DM if you have recommendations.

Thank You,

Matt

Can anyone recommend a good real estate attorney, CPA, and mortgage lender in Charlotte, NC? Thanks!

Hey Guys,

I am new to BP and love the site. My name is Matt and I have been very interested in real estate for many years. I am originally from Charlotte and love it here! I have worked for a property management company, which was a great experience for me to learn a lot about the real estate field. I am currently taking a pre-liscening class in order to get my real estate license. I have really been interested in purchasing my first rental property to buy and hold. I guess it wouldn't technical be my first because I rent out 2 rooms in my primary residence, but it would be my first non-owner occupied property. I would appreciate any advice you have for starting out. My long term goal is to continue to buy properties until I can live off the passive income. 

I have a couple questions for those of you that have structured a small rental company. I am looking to go into business with my mom. She would have a majority of the equity for the company., I would like to be able to leverage as much money from lenders as possible (willing to put 20-30% down in) in order to be able to buy more properties. It is also important for us to have personal liability protection to protect our personal assets. I like the idea of an LLC, however I am afraid it will restrict our ability to get loans at decent rates, if at all. I have also considered a Limited Partnership with a property management LLC as the General partner and my mom and I as limited partners. However, this would still limit our ability to obtain loans with a newly formed entity. What would you recommend? Also how does a limited partnership differ from a family partnership? Tax wise which one would be smarter? I I know it would be easier to put the mortgage in our personal names, but my moms personal assets are not something I am willing to risk. I realized that we could also get umbrella polices with the mortgage in our name. Would both of us have to get polices?

I also have questions regarding the health of the investment market in Charlotte. I have heard all this stuff about the 2% rule. However, I can't find any properties that are even close to meeting that criteria. Obviously I don't have the biggest network, considering I am just starting out. I have only utilized zillow and online real estate listings. Where would you recommend me to look? Are there deals in Charlotte that meet 2% rule?

Thanks guys! Look forward to hearing from you! 

-Matt