All Forum Posts by: Darrell D.

@Dave Foster Thank you very much Dave for your time and help.  That's exactly what I was looking for.  I'm still soaking it in but I have to believe there's no way I can do this without asking for help... something I'm not used to.  This is why almost every podcast recommends networking to grow in knowledge and professionalism.  Recently I've only had time to swing a hammer but I've known for a while that I needed to reach out for help.

I'm very thankful for my military service and the opportunities given through VA loans. Unfortunately my properties are spread across three states. Where there's a will, there's a way, even for crazy veterans like me. This is why the club membership is more attractive me. The price of a club membership is horrendous, but having the ability to easily coordinate such a feat means a lot. I was thinking of being a passive investor immediately in the club and later becoming a lead (active) investor. @Christopher Smith I get the same impression about the club though... The substance isn't there.  Also the fact that they don't disclose financial information is a big red flag.

It seems the cost of an exchange or reverse exchange are reasonable considering the amount invested and the significance of it all.  A regular exchange may be best for my financial status.  

Thank you again everyone!  

Thank you Bill.  Can you discuss the costs of a 1031 and reverse 1031 a bit more?  All of these figures would have to be realized before beginning a property search.  It seems like a long process.   

I have see a number of videos online about the subject. If you're going to cover it with Kilz, I would treat if first with a bleach or hydrogen peroxide solution (as discussed online) to reduce the smell as much as possible. I'm pretty sure they used Kilz on the house I'm living in now. I didn't smell anything when I walked through initially but I certainly smell it now. I can also see the floor was painted... making it untreatable unless I replace the subfloor.

Hello. I do most of learning from podcasts and videos from YouTube. I feel that I have a good plan for myself by selling several of my homes and buying a multifamily unit with a 1031 exchange. However I feel somewhat stuck. I would love to coordinate the purchase of apartments but I don't know of any seller who would wait for my properties to be sold. So it would seem a group of investors would be beneficial, such as Lifestyles Unlimited Inc. At my current level of experience, I would benefit most from being a preferred member but it costs $20k... seems a but much and they won't clarify rates of return when I email them. So I'm wondering how other people coordinate a 1031 without club memberships. Did you know other investors/sellers? Did you sell your property at a low price to get rid of it quickly? Did you sell more than one property for a single 1031 exchange? PS I think this would be a good blog topic... breaking down a 1031 exchange process.

If you have the traditional military retirement option, I think you should strongly consider staying in. I recently retired and had some job complications. However I was still able to support my family with my pension and VA check without a paycheck. That retirement option is no longer available for new recruits. Back to REI.... You can invest while being in the military. You can use your VA loan more than once and you can buy up to a 4-plex. Every time you move, buy another one! I had six when I retired and purchased another three the year I retired. I typically do move-in flips and rent when I leave.

Here's what I like about LU, or any other real estate investment firm...

I have equity which I'm not using in two of my houses.  If I do a 1031 exchange, I need to do something quickly after I sell my home.  LU and other firms give the opportunity to quickly use the funds without attempting to qualify myself with a loan.  

I'm not a member with LU but I would like to be a passive investor.  I see myself as an Lead Investor, because I do absolutely everything... I renovate, find renters, etc.  However for the requirements of the 1031 exchange it would make things much easier to invest with LU passively.

I heard some investments clubs offer as much as 8%.  I asked LU what percentage they give passive investors and they would not answer my question.  They said it depends who the lead investor is and what the contract says.  So I found that to be frustrating.  I would have to be a member before learning the entire deal.  Not good!  However they do offer more than just passive investments (such as education).  

@Joshua  That's a lot of money you could be savings.  

Anyway, I wanted to give one different view.  I have the tenants pay for all the utilities except trash.  I want the tenants to have every opportunity to dispose of the garbage without second guessing the costs.  Plus I've had issues with new tenants not getting their cans in a timely manner so I pay for that.

We have a family member who owns a park.  He manages it himself and is always chasing down tenants for the rent.  So consider your time to be an issue.  Also occasionally appliances are stolen when the move out in the night.   I would ask for maintenance records.  Maybe I should not assume... but I'm assuming the maintenance to be higher on a mobile home.

I have 8 rentals in three different states (AZ, VA, OH). I have yet to pay a manager. The way I see it, I have the ability to use the telephone just as any manager. Rent is a bit low for the area but I can pass the savings on to the tenant because I don't hire a manager. Tenants have direct communication with me and typically stay longer.

Thanks to both of you.  I can go forward with designing now.