All Forum Posts by: Adam Macy

Makes sense. Thank you!

I am considering doing a 1031 exchange. I put extensive rehab into the property being sold. Does the amount of rehab put into the property reduce the profit from the sale? For example:

1. Purchase price : $100K

2. Rehab: $50K

3. Sale price: $200K

In the eyes of the IRS (and 1031 exchange) is the profit $50K because of the rehab that was put into it or $100K because the IRS doesn't care about rehab it is basically the difference in the sale price and purchase price?

Thanks!

Adam

Fannie only allows 70% on non-owner occupied 3-4 unit properties with cashout refi.

I have a property in TX I am looking at doing a cash out refinance on. From your experience is there any lender that will do a 30 year amortized loan with 80% LTV? It could be a 5 yr, 7 yr, 10 yr ARM but looking for a 30 year amortization.

Anyone have leads on lenders or ideas? Thank you!

Hey Bob,

I tried around 100 different offersusing Chris McClatchey's Power of Zero. No deals came about from them and no one was interested in even discussing it. Some realtors actually refused to present my offer to the sellers which I had to help instruct them they were contractually bound to do. I think the market is currently too strong for this strategy because it makes no sense for a seller to take a zero interest deal when they can just wait and a standard offer will most likely come their way. The key is finding the motivated sellers but that is the key for pretty much any real estate discount strategy.

I hope you have better success at it.

Adam

I did a very intensive social media campaign in Northern Colorado, paid A LOT of $ for it and I got multiple leads but most of them were junk. People would just click through unknowingly, they were just curious, won't answer calls/emails or they were trying to sell mobile homes. I had about 70 leads over 3 months and none of them turned into a purchase after following up multiple times with them. I think it has something to do with the market to some degree. Where I am based it is a more affluent area and I think people are not motivated enough to unload their properties at a discount.

If you are a realtor then some of the contacts can turn into MLS listings but even this was difficult, very competitive and proved unfruitful.

Thank you all for the input. I really appreciate it!

@Rachel Rendall thanks for the info. What you say is what the realtor has told me too. I am not buying the one on Illinois. Is it an off market deal? I don't see it on realtor.com or loopnet. Thx!

Oil is the main issue. Horizontal drilling

Hello,

I am in the process of purchasing a 4plex in Midland, TX. It is on a small residential lot. The sellers want to keep the mineral rights. I am wondering if it is worth the battle to try and keep them and potentially lose the deal or just let the sellers have them? I can't imagine a tiny residential lot's mineral rights are going to be worth much in the overall scheme of things. Thoughts?

Thank you!

Adam