Tag Archives: real estate investing

Episode 80: MemphisInvest Vs. HomeUnion

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MemphisInvest Vs. HomeUnion

In this episode my guest Phil Bottfeld and I are talking about the different models used by these two prominent companies for out-of-town investors.

The MemphisInvest Way:

The first way is the way memphisinvest way.  They help you find, and purchase a property, they rehab it, and they manage it for you. We discuss the pro’s and con’s of this method.  I know that this company and the Clothier Family has a great reputation and I’ve never heard anything negative about them.

The HomeUnion Way:

The second way companies work is how homeunion operates where they sell you a house and then management it for you.  HomeUnion has a list of properties that fit their criteria and they have properties with tenants in place.  We talk about their system and how it differs from MemphisInvest. 

What Works for You

We compare and contrast these two methods and discuss the fees involved with each.  Both of these companies offer good services the bottom line depends on what the investor is most comfortable with.

 

Episode 78: Secrets of the 1031 Exchange

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Secrets of the 1031 Exchange

My guest David Foster from ERG1031 gives us the details about Dave fosterhow to use this section of the tax code to defer tax liability.

  • What is a 1031 Exchange?
    • A 1031 exchange refers to the section of the tax code that allows you to sell a property and roll up the profits into a “like-kind” exchange and defer the tax liability until a further date.
  • What’s the benefit of a 1031?
    • You can literally save millions of dollars in taxes over a real estate investing career.
  • How do you start a 1031?
  • Perameters
    • Starts with the sale of a property
    • Intermediary has to be in place
    • Client must produce a list of potential replacement properties with in 45 days.
    • 6 month time to close on the next property
  • What is a “like-kind” property
    • investment property for nearly any kind of investment property.  NOT PRIMARY RESIDENCE.  You can exchange a single family or several for a commercial or multi-family property.
  • You MUST purchase as much real estate as you sell COST wise.. Does not matter if you change one property for thee or more.  The import part is the dollar value amount.

This system only works for buy and hold investors.  You should hold for at least a year before you try to do a 1031 exchange.  This method has been used buy rehabbers when they rent the property for a period of time after the rehab, then after a period of time they do an exchange.

Now if you can use this method if you hold the properties for you life span, when the properties are inherited by your heirs they will not have to pay the deferred taxes.

You can have as many 1031 exchanges as you like.  You must “intend’ to hold the property for “productive use” as an investment, but there is no set time period when you can do a 1031 exchange.

Here is Dave’s contact info

Dave Foster || Phone 850.889.1031 || fax 303.496.1031

Corporate Office 303.789.1031 || dave@erg1031.com

Exchange Resource Group || www.erg1031.com

 

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Episode 71: Brandon Turner from Bigger Pockets

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Brandon Turner from Bigger Pockets

In this episode I am talking to Brando Turner from www.biggerpockets.com. 

Brandon talks about how he got started in real estate investing by studying all night at his dead end jobs.  Being repeatedly told he could not do it, never stopped Brandon.  Brandon went on to fix and flip and by multiple rental properties.brandon tuner

How Brandon bought a Big Multifamily.

I ask Brandon how he was able to purchase a large multi-family property.  He explains that by partnering with his father and using seller financing Brandon was able to purchase and renovate this property.  What was once a property at 50% occupancy this property is closer to 100% today.

The Start of Bigger Pockets

I ask Brandon about how he got started with Bigger Pockets (BP).  He explains how he went from an early member to the Vice President today.  BP today has over 150,000 members and offers a wealth of information for investors.  BP offers free webinars, books for sale and tools (pro members).  BP also has an amazing forum that you can post questions and answers.  You can search the forums to questions that you have.  Most likely someone else has asked the same question before.

Prediction for 2016

Brandon gives his prediction for what he expects to see in the real estate market in 2016.

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Episode 68: Stock Market Crash and Real Estate Investing

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Stock Market Crash and Real Estate Investing

In this episode I am joined in the studio with my wife Nic from http://www.rapwithnic.com about the stock market decline and real estate investing.  The recent sudden decline in the stock market is just a recent example of why I am not a big fan of the stock market.

Volatility Everywhere

Now, don’t get me wrong.  I understand that the real estate market is not perfect either.  But what I am saying is that the real estate market is more stable and is less volatile than the stock market.  Typically, the real estate market is on about a 10 to 20 year cycle between up and down times. That’s a lot better than losing all the gains over a year in one or two days.

Take Control of Your Retirement

I don’t like that fact that we have been “brainwashed” into thinking that our IRA or 401 is going to be sufficient to support us during retirement.  The lack of returns of these accounts combined with an all time low saving level of American family spells danger in the later years.  Several good cash flowing rental properties with sufficient equity could general sufficient income to last a long time.

What about Inflation??

Most retirement plans leave inflation out of the equation.  The fact is, they have to otherwise you;d freak out because you’re actually losing money.

inflation-dollar-graph-from-1913-2010Inflation doubles about every 10 years.  So, it would take twice the amount of money to retire in 10 years.  If your retirement funds are only generating a 3% return per year, or 30% in ten years, you are left with a 20% deficit.

Rentals adjust with inflation.  By periodically raising rents your rental income will stay current with inflation or at least be a lot closer than a retirement fund that is barely showing a return to begin with.  Most landlords that I know are generating a return of at least 10% with many of them seen nearly twice that.  If you are seeing a 10% return that adjusts with inflation, you are truly on your way to a solid retirement.

Episode 47: Renterup.com : Automating Your Properties

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Time to Automate Your Properties!

Have you see renterup.com?  This awesome service has be developed by a landlord for landlords.  Renterup.com allows you to receive the rent payments online for your tenants.  Stop running back and forth to the mailbox and collect the rent automatically.

 

Automate Your Service Calls

Renterup.com also allows your tenants to make service calls online.  This will also allow you to keep a record of the maintenance calls to a particular property.  This eliminates the back and forth with your tenants.

Allow Tenants without Bank Accounts to Pay Online!

Renterup.com has a new service called Paper or Plastic that allows your tenants that do not have a bank account to pay online.  This service gives the tenants a card they can scan at several national chain stores and the store will collect the rent payment and deposit it in your account.  Pretty Sweet!!