All Forum Posts by: Bill B.

If they can do farm accounting they can do real estate in their sleep. 

Ps. I have a dozen properties and I don’t spend an hour a month on bookkeeping (maybe 30 minutes). Try quicken. It’s $50 and super simple. If you use credit card for all expenses they are all auto entered. I couldn’t imagine a bookkeeper doing it for $50/mo and I couldn’t imagine paying $50. It’s your chance to look over how you’re doing. 

You can still sell. If your basis is $2M and you clear $5M after selling costs you’ll owe somewhere between $450k (all capital gains tax) and $750k (all depreciation recapture.). So you’d still have plenty of funds left to pay off debt. 

You can’t use 1031 exchange funds to pay off existing debt so a 1031 doesn’t really solve your problem. You could sell the properties with the problem debt instead? Refinance thsi property to pay off the other properties? 

If you go under the seller is going to lose that $200k. After late fees, penalties, $80k for realtors, transfer costs, etc etc. With 100% financing the deal should fail and the seller should expect to lose. Especially as that 2nd should be at 8-10-12% interest? If it isn’t a “bonus” situation listed below I wouldn’t do it as a seller, even for 12%. 

Either they’d be happy getting 80% and everything you pay is a bonus. Or they already inflated the price 20% so they’ll get market value and what you pay is a bonus. (See a trend?) unless they don’t know how likely they are to lose. 

Only way to “protect them” would be for them to have a personal guarantee and for you to be worth well over that amount. And you could still declare bankruptcy and screw them. Do you have over $200k in equity in your primary home? Give that as additional security. 

I would keep in touch with the charity, especially 60-i0 days from now to make sure the credit card charges aren’t reversed. Maybe contact their accountant CFO and tell them to contact you if the charges are reversed. 

I agree with everyone and would add:

It’s California. If they were trying to screw you they would just stay for 3-6 months without paying. Consider this a win even if they are skipping out on the termination fee. 

It’s going to be hard to get more than the property’s worth.(What it appraises for)

Imagine you have a home worth $250k and you want $300k. 

It appraises for $250k so the investor (after all you can’t sell to an owner occupant, the buyer who would pay more than the investor.) has to bring 20-25% of the $250k plus all of the $50k extra. So they have to come out of pocket $112k. And they are literally out that $50k compare to if they bought the house next to you (with $62k down) and made it an Airbnb. Your reviews and history don’t transfer.

“Usually” you’d be lucky to get your furniture costs back. 

You’re targeting an investor and an entrepreneur, both of whom want to “pay below market”. And you’re asking them to pay over market. Obviously you can ask. But you can’t use your “profit” as a guide when your buyer will have a higher interest rate on a higher mortgage with a higher downpayment.

Goodluck. 

DTI (debt to income) is based on monthly payment, not total amount. Nobody would be able to buy a $500k home otherwise. They want your monthly debt payments to be less than 45% of your monthly income.

When I was building my rental portfolio I was “unemployed” and had no problem getting 10 loans with a monthly payment exceeding $14,000/mo. 

Add the outlet it’s universal and cheaper. 

I assume the $1,500 was charger and labor? If so it seems high. 

I am literally having one done this week. I went with the “expensive guy” as I saw him do the neighbor’s last week. I provide the charger and he charges me $550 because my breaker box is full, otherwise it would have been $450. 

I second the involving an expert, especially in CA. Questions like: How long do you have to store his stuff?  If he comes back you charge him for the expert and the storage.  If he doesn’t you use the security deposit. 

@Christian Gibbs check out @Dave Foster here on BP. He’s been around BP forever so you have confidence he’ll be here tomorrow. I used him last year for an exchange. (It went smooth as butter.) But it does feel weird having a “stranger” you’ve never met in charge of several hundred thousands of your money. 

Ps. He also has YouTube videos and a book he wrote on exchanges.