All Forum Posts by: Tait Duryea

I'm in the program right now. Really enjoying it. If you're at the stage where you need to get more detail than you can get out of a book, the real nuts and bolts stuff, then it's a great option. Pretty cost effective when compared to some other mentorship programs, and if you're primarily looking to raise capital, it's right up that alley. 

Feel free to reach out if you'd like to discuss it. 

Hey Lucas! Thanks for reaching out. Just might be soon. Rehab is almost complete. Do you know Brooks Owings? He's the broker who found this one for me...

Investment Info:

Large multi-family (5+ units) commercial investment investment in West Columbia.

Purchase price: $315,000
Cash invested: $110,000

U-shaped 6 unit brick multifamily BRRRR! ...From 6 times zones away in Hawaii.

What made you interested in investing in this type of deal?

It was my first commercial deal and a made for a great practice run to BRRRR a multifamily.

How did you find this deal and how did you negotiate it?

This was an off market deal that I found through a broker who I was introduced to by a friend I met at the BEC conference last year. We paid the seller's asking price of $315k.

How did you finance this deal?

This was difficult. Local banks, instead of giving me a straight answer, slow no'd me over the course of a few weeks after we were under contract. By the time we were half way through our 60 day escrow, I was scrambling for financing. I ended up going through Lima One capital (who I wouldn't necessarily recommend) for a bridge loan. 2 year IO at 9.75% with 2 points.
Working on the refinance now to place more permanent debt on the property.

How did you add value to the deal?

2 of 6 units were vacant. One was rent ready, but one was gutted to the studs. We're completing a full rehab of the gutted unit, improving landscaping and stabilizing the property.

What was the outcome?

I'll let you know in a few weeks, but with only 5/6 units occupied, it's cash neutral disregarding the capital expenditures.

Lessons learned? Challenges?

Line up debt financing prior to going in.
Create a checklist for due diligence before going under contract.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My property manager, Will Fowler, of the Fowler company is an absolute rock star!

Hello Bigger Pockets family!!

Hoping to bounce an idea off some people here... I have a condo in escrow as of yesterday in the Seattle area. I bought it a few years ago for 54k an it's in escrow at 142k. Nice gain!

I'm planning to 1031 it into a duplex/triplex/quad in Reno... I'll have about 85k from the sale plus roughly another 20k of my own capital to invest. I'm working with a recommended broker, and with a lender on getting pre-approved. I'll also be flying up next week to put together the rest of my core four: property manager and contractor. (I live in Honolulu).

So, that was the plan until taking a closer look at the BRRRR method.. and I don't know. Would it be smarter in the long run to just pay the capital gains tax, and start BRRRRing properties there?

Can I 1031, AND use hard money to buy for cash, renovate then refinance my initial capital out to sort of hybrid both methods? Or would that be against the rules?

Thanks for any ideas or input. I really appreciate it!

Thank you for your response, Eammon! I am working with a CPA. I am aware of the high hour requirement but I do materially participate in my real estate activities- and they are taking a larger and larger portion of my time. 

Thank you very much for the insight!

Hi all,

I’m an airline pilot who owns a number of rentals and intend to begin using the Real Estate Professional tax loophole this year in order to take real estate losses against my ordinary income.

I’m in a unique position as a pilot. We get paid by the flight hour so each month we only spend between 75 and 90 hours at “work”. This makes the real estate professional status achievable.

My question is- would anyone who is a current user of the rule be willing to show me a sample of their logging system? I’ve heard of using excel, google calendar, or even a notebook. I’m just trying to find the best practice and get a sense of what it all looks like.

Thank you in advance to anyone who can help!