All Forum Posts by: Jeff Wallenius

I assume your asking if you can roll profits from a sale into a passive real estate partnership. I am not a 1031 exchange expert, but the rules are for property to be exchanged for "like kind" property. I don't know what your mom is selling here in Oregon but a 1031 strategy most likely will not work in this case. Another thing to remember is a 1031 is tax deferred and not tax free. At some point Uncle Sam will get his take, unless you defer out long enough that the heirs to the property take over in an estate scenario......etc. I would look at all the alternatives, run all the numbers and see what the best case scenario may be. Sometimes paying the tax opens up avenues to create more income streams or provide better returns. Sometimes that tax will chew up so much capital that there is no better way. I don't know the specifics of your scenario. 1031 exchanges are just one strategy, make sure you know all the options. I'm happy to help in anyway.

Cheers!

@Lauren N. I would look at a bit different strategy. Your mom could partner with a experienced real estate expert, I can put you in contact with several, to invest some of the funds into real estate investments across the country. These investments are quick turn deals (1-6 month holds) and this money becomes a passive income stream for your mom, with returns easily in the 10% range with the safety of working with someone with decades of experience and a proven track record. This is not hard money lending as all deals are cash, and the assets are held as collateral. The money is available and not tied up for years like most syndicates, and gives you time to focus on using the other funds to build a real estate portfolio of long term holds while this money is working for you. I know of a very successful investor in the Portland area that does all I mentioned above, with his investors reaping a very nice return, while keeping the risk to a minimum.

As far as investing in SFR as long term holds, I agree with all the individuals that the Oregon market is hot, and the high prices make it difficult to cash flow. The outlying areas of Portland are a bit easier to find the deals that will give you a 10-12% return if your looking for a turnkey product with the typical 20-25% down for non-owner. I happen to have a couple coming on the market in the next couple weeks that would hit the 12% cash on cash return for investors, and I've kept some myself for this strategy alone. The problem with buying in Richmond and then moving back to Oregon is the long distance management. You can spend a little time searching all the forums and come across tons of posts with this topic alone. A management company will not care about your property as much as you will, and will take 8-10% off the top. You can find cash flow properties in Oregon!

I know both these paragraphs are vague, however, I and am currently investing with both of these strategies and can provide more details or references if need be. I also echo the sentiment to stay away from the Gurus, you can find the perfect scenario for your families investment goals without paying money to get the information.

Cheers!

BTW, happy to answer questions or provide more detail on these deals anytime.

Hey Tim, 

It depends on what your trying to accomplish. I have turned a few of my rehab projects into rental properties with great cash flow, however I did not get all of my money out on the refi since banks will only lend 75% LTV. The money that I have into the project will return a 40+% return so I am happy with this investment. If your looking to cash-flow a property, try looking for something that you can buy at a wholesale price and invest some sweat equity and money into, you'll be able to recoup more of your money than buying a retail property at 20-25% down and your cash flow should be better as well. Remember to always calculate your ROI so you can make an educated decision on your money.

I would also check the rural areas and stay away from Portland as prices are too inflated. My rentals are in Dallas, Forest Grove, etc. and do really well.

Cheers!

I also would contact Jay Hinrichs, as he and I have an option that would work for your situation.

Cheers!

Hey Mason, welcome to Oregon! More than happy to help if you need anything.

@Derek Daun I can personally recommend Jay Hinrichs to you without hesitation, in fact I think you'd be misguided not to take his advice on the deal whether you move forward or not.  

@Jay Hinrichs That's a free plug, the next one I'll have to charge you for ;)

@Brad F. 

Sent you a PM

@Brad F. 

What suburbs are you targeting outside Portland? I've been active with rehabs in the outlying areas and many of my finished homes would make good rental units. 

Cheers!

I second Brittany on Rare Bird.  One of the contacts is @Mike Nuss 

I've only attended one meeting, but hope to get to more once my schedule allows.

Cheers!