Help! I Need Help Writing A Real Estate Invest Business Plan

I Need help writing a real estate investment business plan for commerical properties such as an apartment buildings.....Please help does anyone have a sample business plan that I can use as a guide.

Comments(11)

  • cjmazur13th April, 2007

    I have tried using Business Plan Pro 2007, but have become stuck due to the hit and miss nature of the deal.

    In order to secure some larger $$$ deals I need to get back to it.

  • finniganps13th April, 2007

    Looks to me like it went something like this:

    Sales price 126,000
    Less: Cost (47,000)
    Seller concessions (25,000)
    Depreciation? ( 3,000)
    ---------------
    Capital gain 51,000

    Seems about right to me. The mortgage balance is irrelevant. If it was 66k I assume you either took money out or had a negative amortization loan.
    [ Edited by finniganps on Date 04/13/2007 ]

  • ypochris13th April, 2007

    Sold for $126k, gifted $25k= $101k; mortgage payoff $66k= $35k, you got $24k= $11k.

    What happened to the $11k? Pretty high cost of sale.

    I suspect you are being taxed on $101k - $47k = $53k minus cost of sale, plus depreciation recapture.


    Chris

  • NewKidInTown311th April, 2007

    What kind of property are you asking about? Is this a duplex, two unit flats, or are you just sharing your house with a roommate?

    More details please.

  • pzrogers11th April, 2007

    Hi, I have the same basic question as Scott. I have a 2 story hill side ranch where I rent the downstairs apartment. Should the expenses be split 50/50 or is it based on sq footage? would it be a good idea for taxes to form a corporation to "manage" that apt as a business?

    Thanks,
    Patrick

  • pzrogers14th April, 2007

    Thanks srj1972,

    That information was very helpful and it was exactly what I was looking for. Thanks again.

  • ypochris14th April, 2007

    I think that was Newkid- right on target with helpful information, as always...

    Chris

  • bbriscoe12th April, 2007

    What did your AGI consist of? Wages, investment income, Real estate? If it is all wages, then no, your CPA is correct, you cannot take the losses this year.

  • NewKidInTown312th April, 2007

    Quote:On 2007-04-12 11:20, finniganps wrote:

    If you materially participate in the rental (ie. screen the tenants, collect the rents, etc.)

    Just to clarify,

    "Active" participation is required to qualify for the net passive loss allowance. "Material" participation has a different meaning in IRS jargon. Material participation is not required to qualify for the net passive loss allowance.

  • finniganps15th April, 2007

    Yes, to both of your questions.

  • darogo15th April, 2007

    excellent, thanks finnigan!

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