I had my largest investment in 1 large commercial/industrial property. It was a solid investment, but 1 tenant. Sold it for a nice profit. Thought it would be easy to reinvest.
And I did this just as the economy started to take a dump.
Banks started telling me they would not lend money on any sort of commercial investment, not even medical buildings, etc. They were favoring multi-family residential as the future strongest investment. Large industrial property with national tenants was the 2nd most favored loan. I have identified 3 properties, each are 20 unit complexes or buildings. So it looks like I'll end up those, or similar, buildings. It would let me sell off 1 of these smaller properties at a time to spread, or defer my tax hit, from the sale of this one commercial property over time or as I choose. Hardest part is it appears that EVERY OTHER INVESTOR is also shopping for multi-family properties so not quite a bidding war for these properties, but certainly shifting to a sellers market very rapidly.
Never wanted to be a residential landlord, but even hiring a management company for each property it looks like I'll end up making more on residential than I was able to get out of the commercial property.
Tax advisors want me to borrow some money and spend most of the sale equity to totally defer my tax bite. Tax codes are a P.I.T.A. but I don't see much option.
With the price of single family homes unaffordable for new home buyers, it seems like more people are getting shoved into the rental market. Sad state of affairs. I may personally benefit from this but it doesn't mean it is great for America to have people priced out of the housing market.
On a very personal level, I'm also buying a condo for my daughter. She too is priced out of the market. She is now a lawyer, living in Chicago, makes a solid 6 figure income, top 5% of the income curve, but as she is still young, has not had time to save up enough for a down payment since banks are raising the minimum down payment requirements. Condo prices are down, picked up a nice 3 bedroom in a quiet spot in the city near the downtown but isolated from the crazy stuff. Close on that next week and start renovations. She will enter a "lease to own" agreement with us, after a 2 year lease is complete we will convert to a contract sale, with the lease profits applied as a down payment on the condo. I.R.S. rules approve it, she gets a good deal. But again, she and other young professionals like her, are also priced out of the new housing market, so again, not great for America that people can't get into the ownership housing market.
And I did this just as the economy started to take a dump.
Banks started telling me they would not lend money on any sort of commercial investment, not even medical buildings, etc. They were favoring multi-family residential as the future strongest investment. Large industrial property with national tenants was the 2nd most favored loan. I have identified 3 properties, each are 20 unit complexes or buildings. So it looks like I'll end up those, or similar, buildings. It would let me sell off 1 of these smaller properties at a time to spread, or defer my tax hit, from the sale of this one commercial property over time or as I choose. Hardest part is it appears that EVERY OTHER INVESTOR is also shopping for multi-family properties so not quite a bidding war for these properties, but certainly shifting to a sellers market very rapidly.
Never wanted to be a residential landlord, but even hiring a management company for each property it looks like I'll end up making more on residential than I was able to get out of the commercial property.
Tax advisors want me to borrow some money and spend most of the sale equity to totally defer my tax bite. Tax codes are a P.I.T.A. but I don't see much option.
With the price of single family homes unaffordable for new home buyers, it seems like more people are getting shoved into the rental market. Sad state of affairs. I may personally benefit from this but it doesn't mean it is great for America to have people priced out of the housing market.
On a very personal level, I'm also buying a condo for my daughter. She too is priced out of the market. She is now a lawyer, living in Chicago, makes a solid 6 figure income, top 5% of the income curve, but as she is still young, has not had time to save up enough for a down payment since banks are raising the minimum down payment requirements. Condo prices are down, picked up a nice 3 bedroom in a quiet spot in the city near the downtown but isolated from the crazy stuff. Close on that next week and start renovations. She will enter a "lease to own" agreement with us, after a 2 year lease is complete we will convert to a contract sale, with the lease profits applied as a down payment on the condo. I.R.S. rules approve it, she gets a good deal. But again, she and other young professionals like her, are also priced out of the new housing market, so again, not great for America that people can't get into the ownership housing market.
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