All Forum Posts by: Thomas Castelli

Hey everyone, its been a while since I posted on BiggerPockets.

I’m looking for recommendations on a coach/mentor with out of state buy and hold real estate experience. 

I’m not new to real estate investing. I’ve made multiple investments as a limited partner in syndicates, and in 2017 I was part of a sponsorship team that acquired an apartment building in Florida and we sold it in 2020 during the pandemic.

Although I did invest in a syndicate since then, I’ve been more or less on the sidelines as my perspective has changed a bit and my original investment strategy doesn’t really make sense for my goals anymore. My mindset has evolved I guess you can say.

I’m well versed in the most of the strategies that exist and have narrowed them down to a handful of options, but because there a few personal and business variables at play, I’ve been struggling to nail down the best path forward for me since October, and this has led to inaction. Inaction that is becoming costly as interest rates rise and inflation persists.

I’m wondering if anybody could recommend a coach/mentor that I can speak with about my goals and the options I’m considering to help me iron out which path makes the most sense for me - and perhaps act as an ongoing resource going forward?

I’m not looking for online courses or coaching programs at the moment, just somebody with buy and hold real estate investing and coaching experience that I can have a constructive conversation with about my situation - ideally works on an hourly or flat per call fee and has no incentive to sell me something that might sway my decision on the path forward.

Any suggestions are appreciated

Thanks, 

Tom

@Kevin Korntved Something to keep in mind is in order to be considered Qualified Opportunity Zone Property, the property must either originate with the fund (i.e. ground up development) or be substantially improved.

Substantially improved means that you must improve the property to the point that the adjusted basis of the property is more than double what it was before the renovation started. 

If you're looking to invest in these zones your best bet is to work with a lawyer and CPA that can help you stay on top of all new regulations.

Hi @Account Closed, 

I work for Brandon's firm. Since you're using cash accounting, your repair and maintenance expenses (including de minimus) will be accounted for in the month you paid for them.

As for the closing costs, some will be reported as expenses in your ledger while others will be added to the basis of your property and depreciated. Brandon wrote a thorough article on this called The Ultimate Guide to Schedule E.   

@Charles Curley

You can raise money from friends or family and form a partnership where you are the general partner and they are the limited partners aka silent partners. They are paid a return (and eventually their principal back) via cash flow and/or from the sales proceeds when the property is sold. 

If the deal is big enough you may consider doing a syndication - which is similar to the partnership structure mentioned above except you are raising money from people you may not know as well. Syndications require a private placement memorandum (PPM), which can be costly and usually only make sense on larger deals. 

Alternatively, you can try to get a private money loan or ask the seller to finance a portion to reduce the down payment, but typically equity is the preferred method when you need funds for a down payment.

@Vince Scolari Check out "The Syndicated Deal Analyzer" by Michael Blank.

@Missy Price  The capital gains of $94k are included in your AGI, and will affect your tax bracket. However capital gains are taxed differently from ordinary income, in your case they are taxed at 15%.

The ~$25k in suspended passive losses will offset the capital gain. So your capital gain would really be ~$69k

Hope this helps!

@Mike DeBuccio Jr.

1. BiggerPockets Podcast ;)
2. The Real Estate Guys
3. Wheelbarrow Profits - Jake & Gino
4. Apartment Building Investing - Michael Blank
5. Best Real Estate Investing Advice Ever - Joe Fairless
6. The Epic Real Estate Investing Show - Michael Theriault
7. Creating Wealth Real Estate Investing - Jason Hartman
8. Old Capital Podcast
9. Passive Real Estate Investing 
10. Real Estate Investing for Cash Flow - Kevin Bupp

My personal favorite is The Real Estate Guys, but all these are awesome!

@Larry Daniels Whenever you do a 1031 exchange, the person or entity selling the old property must be the same person or entity buying the new property.

So if your S-Corp owned the original property then the S-Corp must also own the new property. You wouldn't be able to put it in a new LLC, even if the S-Corp owned the new LLC.

Here are two links with more details:

https://www.biggerpockets.com/forums/51/topics/372...

https://www.biggerpockets.com/forums/104/topics/10...

Hope this helps!

Who is this event for?

Investors who want to learn about popular real estate investing strategies.

At this event we will cover:

- What is fix & flipping?
- What is multifamily value - add?
- Pros and cons of each strategy
- How to passively invest in each strategy.

Event Schedule:

6:30pm - 7:00pm - Networking
7:00pm - 8:45pm - Presentation and Q&A
8:45pm - 9:30pm - Networking

@Buddy Holmes Yes, from my understanding, 1/2 of the property would receive a stepped-up basis and the depreciation schedule would restart at the new stepped-up basis, whereas the other 1/2 would remain on the current depreciation schedule.

For example, if the FMV of the property on the date of the deceased party passed was $300,000, then the 1/2 inherited would receive a stepped-up basis of $150,000, erasing any previous depreciation. That 1/2 property would then begin depreciating at $150,000.

Meanwhile the surviving party's original 1/2's basis would remain unchanged, and continue to depreciate on it's original schedule.