All Forum Posts by: Brian Gerace

Thank you!!! Do you know an approximation of how much the cost segregation with speed up the depreciation, ie 30% of depreciable base(price minus land)?

Wow, alot of information here. Thank you!!!

I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible.  Is my thinking correct that homes in highly appreciated areas won't benefit as much from Cost Seg.  I was looking at an attractive rental but it looks like the land value is 75+% of the value, so I would be paying a ton get very little tax benefit.  I know the decision shouldn't be made of tax benefit alone but starting to think other areas may help me accomplish both more efficiently.

I have a rental with significant equity. Have idle funds that I am debating using to pay off the mortgage on the rental property. Any thoughts on the pros and cons. Property cash flows as is.

Do you have a contact or just contact through website.  I am in CA 

I have built up significant equity in a California property. It cash flows, but I feel like the idle equity could earn better return elsewhere. Can't decide if I should sell and tap the equity or just ride out a cash flowing property in CA. The idle equity just scares me if we have a market downturn it is at risk, where as if I could invest the equity out if state I may be able to increase the cash flow and not speculate on the appreciation. Thoughts?

The bigger idea behind them is it is a great place to park idle(temporary) cash. It is simple average outstanding balance math. As your paycheck and any other source of money come into the account directly, your balance is significantly lowered until you need access to the funds(ie, pay bills, etc). Why let the money just sit in your bank account when it can at least be earning the rate on the HELOC while it is idle. I have access to a lender that couples the first lien heloc with a sweep checking account so it is seemless. You dont even notice any difference from your standard checking account. Just direct deposit it and write checks or debit cards for any expenses.

Thanks @Ivan Barratt.  Great response and I appreciate the clarification. 

Awesome info @Nick B..  I might just be overthinking so thanks for the clarification.  I saw a sample distribution model that had some elaborate calculation where there was a preferred dist, then a return of capital. So the next distribution had a pref dist based on a lower Capital amount because of the previous return on capital.  

Thanks Nick.  So technically, you can structure any way investors agree to.  For example, you could have it where investors get X% and anything about that would be Return of Capital? This structure could be beneficial to investors that have an interest in having some of their capital returned earlier.