Selling Properties? (by Peter [NH]) Feb 18, 2019 4:26 AM
Selling Properties? (by LisaFL [FL]) Feb 18, 2019 4:33 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 4:51 AM
Selling Properties? (by RB [MI]) Feb 18, 2019 5:21 AM
Selling Properties? (by S i d [MO]) Feb 18, 2019 5:40 AM
Selling Properties? (by Dave [MO]) Feb 18, 2019 5:46 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 6:03 AM
Selling Properties? (by LisaFL [FL]) Feb 18, 2019 6:35 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 6:51 AM
Selling Properties? (by Johnny B. [MA]) Feb 18, 2019 7:08 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 7:41 AM
Selling Properties? (by Oregon Woodsmoke [ID]) Feb 18, 2019 7:42 AM
Selling Properties? (by LisaFL [FL]) Feb 18, 2019 8:00 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 8:34 AM
Selling Properties? (by Robert J [CA]) Feb 18, 2019 11:33 AM
Selling Properties? (by Peter [NH]) Feb 18, 2019 12:32 PM
Selling Properties? (by Smokowna [MD]) Feb 18, 2019 2:40 PM
Selling Properties? (by LisaFL [FL]) Feb 18, 2019 6:00 PM
Selling Properties? (by Janet [OR]) Feb 18, 2019 7:09 PM
Selling Properties? (by MJ [PA]) Feb 18, 2019 7:22 PM
Selling Properties? (by Peter [NH]) Feb 18, 2019 7:40 PM
Selling Properties? (by Robert J [CA]) Feb 18, 2019 8:22 PM
Selling Properties? (by Peter [NH]) Feb 19, 2019 6:17 AM
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 4:26 AM Message:
Just curious if anyone is selling off properties now that it is not a bad time to do that. I am 55 and have been selling and hope to sell off more this year. Researching 1031 exchanges into commercial no-debt DST's. My goal is to still keep 43 units (they are paid off) for another 5-7 years. Two things I cannot change are the market cycles and my age (I wish I could though)! --75.67.xxx.xxx |
Selling Properties? (by LisaFL [FL]) Posted on: Feb 18, 2019 4:33 AM Message:
Yes. Age 57. I had 32 and sold 4 last year, 1 this year and two more will be on the market shortly.
I'm only selling when someone decides to move. I just don't want to deal with new people at this point and want to take advantage of our sellers market. It took some time to get over the tax bite but I'd rather just pay and have less to manage at this point. It will take some time to dwindle things down. I just decided I'd like more freedom and flexibility. --216.186.xxx.xx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 4:51 AM Message:
Thanks. I feel the same way. Everyone has their own feelings and strategies, just wondering what others are doing. Sometimes I feel like I am the lone ranger out here by myself- --75.67.xxx.xxx |
Selling Properties? (by RB [MI]) Posted on: Feb 18, 2019 5:21 AM Message:
Your not alone, Peter.
My Die Broke Program started this year.
"I got a Long way to go and a Short time to get there".
Dowhatyagottado. --184.53.x.xxx |
Selling Properties? (by S i d [MO]) Posted on: Feb 18, 2019 5:40 AM Message:
Curious, what kinds of properties/price ranges are you selling?
I see a lot of stuff hitting the market in my town, and most of it is lower end stuff like my Class C 2-bed cheapie houses that would've sold for $20Ks 5 years ago. They're now listed in the $40Ks. I'm not buying those, but I do find the occasional "diamond in the rough".... --173.20.xxx.xxx |
Selling Properties? (by Dave [MO]) Posted on: Feb 18, 2019 5:46 AM Message:
Yes, over 50 myself and am selling the inventory off as units become
open. Had 49 and have moved down to 35. My strategy is moving from
C properties to B. Have bought a few of the latter. The goal is to reduce
units to about 15 or 20. My other focus is to do 3 to 4 flips a year.
Currently only about 2 a year. Flips are great for reducing debt. --173.216.xxx.xxx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 6:03 AM Message:
My units are all townhouse or garden style B class condominiums. Almost all have been remodeled with a bedroom added to each for more cashflow. --75.67.xxx.xxx |
Selling Properties? (by LisaFL [FL]) Posted on: Feb 18, 2019 6:35 AM Message:
I'm selling what I see as class B properties that attract more entry level buyers.
So far I've sold:
1. Purchased in 2014 for $95,000 (rented for 3.5 years), sold for $215,000. Rent covered most all repairs/upgrades.
2. Purchased in 2012 for $60,000. Rented six years. Sold for $169,900. Rent covered all upgrades with lots left over.
3. Purchased in 2003 for $70,000. Sold for $112,000. Rented for 15 years.
4. Purchased in 2015 for $80,000, sold for $154,900. Rented for almost four years (rent covered upgrades with lots left over).
5. Purchased in 2015 for $68,000. Put $22,000 in to it and my sister lived there for just the cost of taxes/insurance so not technically a rental. Currently listed for $179,900. Glad she left but her staying there did allow me to sell after the market recovered.
6. Sold the one I had in another state. Purchased in 2011 for $95,000. Had one tenant and had to put virtually nothing into it (replaced a refrigerator and had one AC service call over 7 years). Made roughly $7500 a year in rent. Sold for $120,000.
7. Purchased in 1986 for $42,000. Rented for almost 33 years so rent has paid for all upgrades/repairs. Should sell for $155,000. --216.186.xxx.xx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 6:51 AM Message:
Thanks Lisa,sounds like a successful story. Congrats :)
Just curious about what you might do with the cash. I am trying to figure this out myself. --174.192.xx.xx |
Selling Properties? (by Johnny B. [MA]) Posted on: Feb 18, 2019 7:08 AM Message:
Peter - what part of NH are your units in? --24.147.xx.xxx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 7:41 AM Message:
Merrimack Derry Manchester
--174.192.xx.xx |
Selling Properties? (by Oregon Woodsmoke [ID]) Posted on: Feb 18, 2019 7:42 AM Message:
Yes, I am selling and reducing. 1031 two properties into one better one, or paying taxes.
I'm tired of dealing with tenants. I am having serious trouble finding any handyman or repairman who is reliable. I've given up on reasonable fees, just show up and do a good job, and I can't get that.
My son has done a lot of repairs for me and he is getting older and he's tired of tenants and tenant damage so that it has started to make him grumpy. He works long hard hours and doesn't want to spend his day off repairing rentals.
Prices are still good. Real Estate runs in cycles, so the high prices won't last forever. They will go down again, then up again, but I don't want to wait out another cycle. --98.146.xxx.xxx |
Selling Properties? (by LisaFL [FL]) Posted on: Feb 18, 2019 8:00 AM Message:
Peter, that's a great question! What to do with the cash....
I don't know the right answer. I'm tending to invest 1/3 or so in index funds. The rest I've keep in cash/CDs. It's hard giving up the better returns but I have enough so the lack of risk is appealing as well. --216.186.xxx.xx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 8:34 AM Message:
Hi Oregon
I know kind of how you feel. I lost my handyman extrordanaire last year. I had a good 7 year run though. At the moment I will pay a premium for anyone that can do a decent job and I like working with. Don't give up. I lost my right hand helper person twice in my life and both times to my great surprise I found someone who was actually better in some respects.
--174.192.xx.xx |
Selling Properties? (by Robert J [CA]) Posted on: Feb 18, 2019 11:33 AM Message:
The idea when we get older is to simplify life by disposing of difficult rentals. I also pay close attention to the market cycles. During my 40 years as a real estate investor I've seen the market tank three times.
I also studied different strategies when attempting a sale, taking into account the tax consequences. Federal Capital Gains tax went from 15% to 20%. California State tax went from 9.3% up to 13.3%. Also the affordable care medical tax, when earning / making 200K to 250K, add another 3.2% tax to the mix.
So my options are:
a) Sell and carry back the mortgage paying the Recapture (25% rate) and Capital Gains Tax as I receive the payments -- earning interest on the "Gross" proceeds before taxed. The yield adds another 30%-40% to the income.
b) Do 1031 tax differed exchange.
c) Do a reverse 1031 exchange.
d) Do an exchange into a TIC (Tenancy In Common).
e) Do a tax differed exchange from residential rentals into commercial triple net properties.
f) Sell at the high of the market cycle, do an exchange into a Oil Lease Investment (like property) and wait a few years when the market tanks and then do another exchange back into homes/apartments.
I sold properties in 1990 at the high of a cycle and pick up bargain's in 1997 & 1998. Later to sell a bunch in 2006 & 2007. Then buy back properties in 2009 & 2010. Sell high and buy low. --47.156.xx.xx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 12:32 PM Message:
Wow. Thanks for the info Robert :)
Food for thought. My goal is to reduce stress so I am looking into Delaware Stagstory Trusts which make all the decisions and I can 1031 into. There is risk and they only pay potentially from 5-6%. They are sort of like a REIT that you are allowed to 1031 into. --174.192.xx.xx |
Selling Properties? (by Smokowna [MD]) Posted on: Feb 18, 2019 2:40 PM Message:
The answer is right in front of you.
Lisa sells, then buys the balance of Peter's mortgages.
I've been asking my friends for years to buy my mortgages. Now they are nearly all gone...it is getting to be too late.
On another note. I've been daydreaming about finding buyers, slowly and one at a time. If I could hold the notes then I could sell the houses for less to people whom I've vetted. They would be pleased and I would make up the difference on the interest.
I have my first person in mind.
All the people posting above, and more, should get together at a Mr Landlord convention and discuss your ideas and goals. It can be the Private Equity Seminar.
--96.241.xx.xx |
Selling Properties? (by LisaFL [FL]) Posted on: Feb 18, 2019 6:00 PM Message:
Smokona, that is an option. held nine mortgages last year. Three people paid theirs off this year so now I have six. Those have always worked out well and are a win-win for everyone. Realitively safe for me being secured and with a higher rate of return. In one case it was an owner finance situation so I get to spread out my tax liability as the payments are received. --216.186.xxx.xx |
Selling Properties? (by Janet [OR]) Posted on: Feb 18, 2019 7:09 PM Message:
Peter, I am also looking into selling a multi family complex and doing a 1031 exchange into DST's. I have been researching the process for about the past month. --71.193.xxx.xxx |
Selling Properties? (by MJ [PA]) Posted on: Feb 18, 2019 7:22 PM Message:
I will be selling some units here in Pittsburgh as well. It is a sellers market here also and inventory is low. New people are moving here from expensive cities because our cost of living is still very affordable. --76.125.xxx.xxx |
Selling Properties? (by Peter [NH]) Posted on: Feb 18, 2019 7:40 PM Message:
Hi Janet
I would love to talk to you about your DST research. You can call me if you would like at 603-889-0711. Anybody else is free to call as well to talk about real estate. Thanks everyone for your input! Thanks for the thoughtfulness and time put into your replies. --75.67.xxx.xxx |
Selling Properties? (by Robert J [CA]) Posted on: Feb 18, 2019 8:22 PM Message:
Just to let you guys know there is sometimes some hidden costs passed on to the investors of a DST or TIC.
One time I was selling a large apartment building and was thinking of going into 3 or 4 TIC's. My time was running out to do the 45 identification for the 1031 exchange. The sponsor and his agents ran out of the literature and had the printer send me another copy via overnight mail.
I COULD NOT BELIEVE MY EYES. By mistake I got not only the full packet but some other materials. The sponsor picked up this hotel for a song, it went belly up. He then, under one of his LLC's, put the hotel back in service. Slapped on a fresh coat of paint and ran up a phony upgrade schedule/cost. He then sold this same hotel to another one of his LLC's for 20% more than his true costs.
Then as the sponsor, he got 12% ownership for free as the finder and manager of the property--sponsor. The real estate agent was supposed to make around 7% commission but was really getting a free spot, position of the TIC. So the agent's fee's came to over 10%
As a foolish investor, from the start I was going to pay 25% more than the cost plus a 12% finders fee and 10% commission -- THAT'S AROUND 42%. This means that over the next 5 years if the TIC does well, I'm going to only break even. It's going to take around 10 years before I can sell the property at a profit -- and a small one at that..... --47.156.xx.xx |
Selling Properties? (by Peter [NH]) Posted on: Feb 19, 2019 6:17 AM Message:
Wow, thanks Robert for the info! I would love to cut out the middle-men in these things. I am also cynical.
It seems like you have had awesome luck at timing the real estate market and wondering if you are selling any units right now and how much time we have left in this wave. Thanks again for taking the time to give input :) --174.192.x.x |
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