All Forum Posts by: Aaron Armstrong

@Ben Zelenka

If you are talking large amounts of cash then rolling over short term treasuries, I think, is the best bet.

@David Park

Sounds very similar to what I am going through currently. Any advice? And how did it work out?

@Kyle Altenau

Thank you for the response. Bridge loan 😃. That sounds like exactly what I need. I will be researching this ASAP.

-Currently the property has many cabins and other structures; pole building, conference center, hangers, saw mill.

- The due diligence I reviewed didn’t say if the value was from leases, I only see the bankruptcy mortgage of 3.4, I have no doubt there is at least 2.5, on the low end, between all of the structures and land value as-is

Question: how long do these type of loans take to do? The reason I ask is the auction is in 4 days 😅 ( I wish I was kidding). I would kill to have noticed this offering last month or so. And the 35 day closing after the auction is terrifying to loose 100k. Any advice on this ?

Thanks again!!

Hello all!

I am looking for advice or ideas on how to make this deal work.

Property description: Recent appraisal ~ 4,000,000 - 400+ acres multiple dwellings and buildings. I have a business plan for cash flow after purchase. Close to me locally, about 15 miles from my home.

Auction- potentially going near 1 million, but 35 days closing with a nonrefundable 100k ( I wouldn’t want to go over 1.2 total with buyers fee 8% )

Me personally - net worth 1.2

Liquid- 400-500k

Banker- 700k - I have a good relationship with my banker, but I have trouble collateralizing 700k. I have a few lines for my construction company, and he is trying to use the financials of it to make it work and currently talking with him.

I don’t come from wealth, so it was a quick trial from family. I have a friend with that much in real estate, but can’t get it liquid fast enough for me to risk 100k

In my head ( correct me if I am wrong of course )

-Total equity - 4 mil

-I bring 400k

-Loan for 700k until purchase, then refi Into more favorable terms.

- cash flow pays the (high, IMO) taxes and balance on loan; net worth jumps up 3 million, cash flow a fair amount on the 400k I have invested. I probably could get more cash flow elsewhere, but I like the thought of my wealth in the land long term. And it’s beautiful, so I would like to keep forever.

More of a brain dump, I know. I apologize.

I am looking forward to any feedback and will be much appreciated. 😊. And a big thanks to BP!

Originally posted by @Charles Patterson:

@Aaron Armstrong, I think I can help here.

I work with Mercer County State Bank.  They do portfolio lending.

Here is their website:  https://www.mcsbank.bank/

and here are their locations:  https://www.mcsbank.bank/Locations-Hours.aspx

Though they are "Mercer" you can see that they go into other coutnies, and will work with properties within a 50 mile radius (which butler easily falls into).

I personally have talked with "John Gilliland" out of the Grove City branch.  His contact information along with the banks list of lenders and their location they work out of can be found here:  https://www.mcsbank.bank/Commercial-Lenders.aspx

Good luck, hope the info helps.

 Thank you! I will look into this. I appreciate you taking the time. This helps a lot! 

Hello All, I am looking to refinance a property in Butler County, Pa. We have called around to a few local banks and credit unions but all, so far, don’t deal with rental dwellings. Any suggestions from the BP community? Thanks in advanced :) *Allegheny County, Crawford County, Bruin.*

@linda Thank you for the conversation :).   

Anyone willing to talk stratigies?  I don't have a CPA that is willing to see my situation hence I am here trying see what people a lot smarter than me have done in the past.  

Please feel free to tell me that I am way off here, if I am.   

I am aware that I repel profesionals with my "high school drop out "way of looking at taxes and law.  

Any books ?  

Tax stratigies for the savy REI was awesome!!! Btw

thank you in advanced 

@Linda Weygant .   You have 100k in your s-Corp.  You don't need the money to live or keep in your business. You want to buy a 100k house.  What do you do?  

hmmmm...

Thank you @Linda Weygant .  To tell you the truth i was not expecting such an awesome detailed response and now wish i would have written more info in the question so you didn't have to assume anything.  

My CPA, as of now, did inform me that a S- Corp would be better for a small business like me so that is what we did.  I am currently pulling money out of the business as distributions as you described, i just don't like that i will have to pay taxes on that distribution. (haha shocker)   So while i am minimizing personal spending and maximizing business expenses, i currently don't have to "pull" as much out of the business and have some excess cash that i want to buy more real estate with.  And as of now i don't care to buy equipment or tools to grow the construction Biz.

So ....   I guess what i am asking is ....  this my only choice?? 

(make money in S-corp) > Distribution > pay taxes on that distribution > buy rental ?

Thank you again for taking the time to reply :)