All Forum Posts by: Shane Edwards

Hello,

I bought a fix and flip property last year, did some demo to it and found that the property was not worth renovating(too much structural damage). I have about $80,000 in demo, Lender Interest, and other holding fees/costs for last year. I am likely going to have to sell the property for less than I purchased it for, eating losses for the sale and expenses. 

I purchases in a single owner LLC. I have been told that taxes from personal to single owner LLC kind of cross over into each other, maybe that is not the case?

I did an early withdrawl on my 401(k). I'm hoping that I can mitigate lax losses from that withdrawl (roughly $120K.)

Can I write off these expenses for last years taxes through my LLC to mitigate tax expenses from my personal 401(k)?

I hope this makes sense, I can respond with more info if needed?

Thanks in Advance!

Shane

I purchased a Fix and Flip investment property in Tampa. It is a 100 yr old bungalow that after an interior demo I have found that renovating this home is not the most cost effective exit. I am currently in search for my best option. A teardown New build is the best scenario, this will create a modern open flor plan and added square footage, but finding a lender that will work with me is not easy for 2 reasons, lack of new build experience(none) and the numbers are a little tight. I purchased the property in an LLC with a hard money lender. I was wondering if I could purchase the property in my own name for a new construction loan for personal residence or second home as I will be more eligible for an FHA or conventionial New Construction loan. I'd be more interested in new build as an investment property than personal property.

I have about $250k into the property now. I found a local builder that told me he could build me a New Construction Block home for $200k, 1600sqft, 2 stall garage, 3/2. This should ARV at roughly $500k minimizing losses, ideally this is the route I'd like to go. As I had mentioned qualifying for the loan I need is a struggle with my lack of experience.

I'm also open to suggestions on a different exit plans for this project as well.

Thanks in advance for any insite on this!

Hello BP,

I recently purchased a flip home in Tampa. The home is a 1920's bungalow 830 sq/ft 3/1. I bought the home knowing that needed a full renovation, I had a contractor come in and fully demo the interior( walls, ceiling, subfloor, etc.) After full demo, we found severe rotting and termite damage on the main supports and all the subfloor cross beams. About the only thing decent on this house is the roof, decking and shingles replaced in 2009, still dating the shingles pretty old. I'd like to weigh my options here between renovating into a 2/2 or just knocking it down and getting a quote on a new build 3/2 w/garage +/-1500 sq/ft and hold for long term rental.

So in short, I need quotes to finish this renovation or quotes on new build. Can anyone recommend a contractor that will work with an investor on this? It would be great if I could find a new construction contractor that works in the area and already has a common model build to lower costs.

Thanks in advance for your time!

Shane

Hello,

I have just formed an LLC and I need to choose a bank to do business with. Can anyone give me some recommendations, or banks/credit unions that have caused them head aches? I'm looking to move forward with BRRRR, Fix and Flip, and Short term Rentals in the Tampa and surrounding areas. I live in St. Pete and would prefer to find an investor friendly local credit union. Any pointers would be a great help!

Best Regards,

Shane

@Brian Eastman @Neil Henderson @Marco Bario

Hey gentlemen, thanks for the info! That really clears things up on my end!

Best regards!

Hello,

I have heard of several ways to use my personal 401(k) for creative financing. I'm thinking of transferring my previous employer 401(k)(quit my W2 job last month) to a Self Directed IRA to use these funds to Fix and Flip or BRRRR a property, most likely SFH. I have roughly $115k in this account. Is this something I can accomplish? I'm weighing my options of just cashing out this account and just paying the taxes on it, but if possible I'd like to lend it to a project and take advantage of the tax free money. What could be some road blocks or hurdles? Could doing something like this be a waste of my time?

Would I consult an attorney or financial advisor to weigh my options?

Thanks in advance for your input!!

Hi Caleb! 

I just moved to St. Pete and in the market to make a move very soon. The BRRRR method or flip is most appealing to me. I'm just curious, what neighborhood were you able to find that deal?

Hello, 

I'm looking for referrals of property managers that deal with section 8 for a duplex in Frankfort, KY.

Any help is greatly appreciated.

Lexington, Louisville, Richmond

So I did it, I bought my first duplex finally in Frankfurt Kentucky. I’ve had less than pleasant experience so far with my agent, closing attorneys, and contractor.. I now understand the importance of quality team members with a sense of urgency.  I’m looking for recommendations for the following.

General contractor

Real estate agent

Property manager

Attorney

Wholesaler

Lender

Insurance Broker

Thank you in advance for your help.



@Jerry Padilla

Thanks Jerry for clearing that up for me! Excellent information!