3 investors in a House - Posted by Chewy(MI)

import · April 17, 2002, 7:30am

Posted by chewy on April 17, 2002 at 10:17:57:

So far these have been some excellent creative ideas and I’ll definately check into each of them! Keep them coming!
Thanks again
Matt

import · April 17, 2002, 7:30am

Posted by Chewy(MI) on April 17, 2002 at 07:30:26:

I live in a large older house with two other business partners in my investment company. In Janurary I will have owned it for two full years(tax advantage). My question is does anybody have any suggestions for how all three of us can get into seperate housing for investment purposes while having to fork the least amount of money out of pocket. Were looking for new ideas, previously not thuoght of, to add to our investment portfolio. However we don’t want to pay too much more than we are currently paying for the three of us under one roof. I’m open to any CREATIVE thoughts or unconventional ideas. Thanks and have a great day my online friends.
Matt

import · April 17, 2002, 8:00am

Re: 3 investors in a House - Posted by GL(ON)

Posted by GL(ON) on April 17, 2002 at 08:00:28:

You might look at doing a tax free exchange for a triplex. Exchanges are fairly common among investors, and most would be happy to do this even if they wish to cash out, because a single family home is easier to sell than a triplex.

In this case if your equity acted as the down payment you could do it with no out of pocket expense. Even your closing costs could be added to the mortgage.

import · April 17, 2002, 4:57pm

Re: 3 investors in a House - Posted by Talia (NY)

Posted by Talia (NY) on April 17, 2002 at 16:57:11:

Pardon my ignorance, but what is a tax free exchange?

Thanks for the responses in advance.
-TAP

import · April 17, 2002, 8:03am

And another idea… - Posted by GL(ON)

Posted by GL(ON) on April 17, 2002 at 08:03:34:

If an investor had 3 houses or 3 townhouses on a single deed, you could make the trade then sever them and each have your own house. This is rare but I have seen it occasionally.

import · April 17, 2002, 5:13pm

Re: 3 investors in a House - Posted by GL(ON)

Posted by GL(ON) on April 17, 2002 at 17:13:06:

Tax free exchange or 1031 exchange. If an investor exchanges one investment for another investment of like kind, no sale has taken place for tax purposes and no income tax need be paid.

If you sell investment property at a profit it is either income or if held long enough, a capital gain. Doing an exchange as part of an investment program defers the tax liability.

import · April 17, 2002, 8:06am

Re: And another idea… - Posted by GL(ON)

Posted by GL(ON) on April 17, 2002 at 08:06:28:

In some areas there is good money to be made by buying apartment houses and turning them into condos. The holdup is that you need to get the majority of tenants to agree.

What if you bought a small apartment house and installed yourselves as tenants?That is three votes right there. If it were a 5 unit that might be enough. Check your local condo conversion laws.