All Forum Posts by: Robert Capozzoli

Kimberly,

I'm in a similar situation, did you ever purchase the house? What did you find out?

Best,

Rob

Can anyone recommend a affordable stone countertop vendor/supplier in the central NJ area?

Thank you everyone for your insight! Ill let you know how I make out :)

Hello,

My wife and I came across a 4 unit multi use opportunity in NJ. It has 3 commercial spaces on the first level and a large appartment on the 2nd floor. We would live in the apartment. I was told I need 25% down by the realtor to get financing. Is this true?! I can't imagine this being the case with all the financing options available. I thought anything under 4 units is considered non commercial, but it's a multi use property so I'm not sure. 

Any insight and let suggestions?

Thank you,

Rob

Hello,

Thank you for taking the time to read my post. My wife and I are trying to help my in-laws with their retirement plans. They currently own their home and are looking to retire in the next 5 years. My wife and I are trying to convince them that renting their home is the best option, as they want some time to explore other areas to live in the US, but keep the possibility of moving back or selling. I want them to avoid the sell and "cash out" option that they currently have plans for. I'm trying to show them how the monthly cash flow can provide them the income and freedom they need for a comfortable retirement. I want them to avoid putting all their eggs in one basket and hope it all works out. My suggestion was to use a small portion of the home equity to buy a small condo/town home when they decide where they want to retire.

My full-time job is in property management, so I told them I would manage the house free of charge while they explore their retirement options. The only snag I have hit is in their tax liability if we rent the home out. From what I have read, after 3 years the home would be considered an "investment" and not their primary residence and would then be liable for capital gains tax if they were to sell the home. Other than a 1031 or moving back into the home as a primary residence for 24 months before they sell, what options are available to avoid this tax? Could they "gift" the house to my wife and I...then we sell? 

Any insight is much appreciated!

Best,

Rob

Quick question,

Where could I get  a map or listing of all multi-family zoned lots in my town? I want to build a list and send out letters to owners for properties I would be interested in. 

Thank you,

Rob

Hi Tzvi, 

Thank you for the reply! 

1. What is your funding startegy.? Hard money lenders will typically allow funding into an LLC, whereas conventional financing will not.

Currently we are looking into hard money lenders.

2. Why are you using an LLC instead of your own name? In other words, do you have significant assets you're trying to protect? If not, LLC may not be necessary if your flipping the property.

Other than our home no, but I would like to protect myself regardless. Is there a significant cost in setting up and keeping an LLC in NJ? Other than making it more difficult to obtain a loan in the beginning stages?

3. Will you have any partners or own outright with your spouse? LLC may be better off if you're going to have partners in this case, again an asset protection/limited liability question.

No partners at this time.

These are just a few questions to consider before speaking to a professional.

PM if you'd like to discuss further.

My wife and I want to get started by flipping houses, pay off our balance on student loans, build capital, then invest in buy and hold property. I want protection but I also need to keep my options open when it comes to loans and funding deals. Buying a flip under an LLC is what I want to do but I'm not sure if that's financially intelligent. I'm just starting out I know lenders are finicky with loans to LLCs. I plan to create an LLC regardless to secure the name for when we scale. I'm also curious on how to structure multiple LLCs for future buy and hold property.

What about equity? Could you pull some from your rental property for a down payment? If you can rehab then refinance the new property you could potentially pay back the equity loan or line of credit and perhaps even have extra cash on hand.

Best of luck!

Hi everyone! I'm looking for a CPA to help me with starting an LLC . Of course I'm looking for someone who is well-versed in real estate . I live and Basking Ridge New Jersey. any advice is much appreciated.

Best,

Rob