All Forum Posts by: Benjamin Small

Can I run a specific scenario and goal by you regarding a 721 exchange?

@davefoster

Hello fellow Bigger Pockets members. 

i am wondering what you are perceiving in the coming months and years in the global economy and how it might affect real estate values and investing. 

The US is in an 8 year economic expansion. This 8 year period is the third longest expansionary period in US history. At some point, we will go on to a recession. It follows normal business and economic cycles. 

The Federal Reserve continues to keep interest rates at low levels, in part, to fuel this economic expansion. This can lead to asset value appreciation. When interest rates rise, values are likely to fall as a result. 

The federal budget continues to grow and the country runs at a budgetary deficit. Eventually, federal spending or taxation will have to adjust to compensate. Otherwise, the value of the currency falls leaving to inflation. 

I am looking at the current RE markets and deals with these concerns in mind and wonder how to effectively make offers that make financial sense for the long term. 

What are your thoughts?

Thank you @kerry baird & @Nik Moushon

@stephanie potter I was told they aren't doing loans on investment properties.

@stephanie irto that is a good point. Thanks. 

I need some ideas, thoughts and recommendations on pulling money out of a property. I haven't been able to find a lendor in my area that will lend on HELOC on the property. I would like to pull money out of a fully rented property and use the cash for new opportunities. Anyone have ideas or leads. Property value is around $110k, looking to pull out less than 80% of that value. I have good credit. I have an existing mortgage on my primary residence.

Give me your thoughts.

Research the requirements of incorporating your LLC in a different state than the one you are doing business in. States usually require some sort of additional filling in the state you are doing business in addition to the LLC formation paperwork in whatever state you are incorporated.

I thought about incorporating in Delaware but doing business in Florida and decided to just incorporate in Florida. 

Ask him if he will get rid of it and go from there. Assuming that he is not willing to get rid of the dog, offer him a couple hundred bucks to get rid of it. If he is still unwilling, then you might have an issue. You could get roped in to being liable should something happen and the dog hurts someone, including if he hurts the owner himself. It is opening you up to some liability.

One fact to consider is when the first payment would be due. If you get a HELOC, that money would be available for you to use but you wouldn't start making payments until you had used the cash. With a cash out, you will owe payments the next month after you borrowed the money. That may or may not be important to your specific deal. Things do come up and timeframes change.

Some questions:

Do you already have the next property in mind and the deal ready? That would make either option pretty equal. What are the interest rates on both options?

I personally prefer having a HELOC on stand by, not a cash out refi.

Hi Jeff, I am looking to do the exact same thing. I will let you know if I was successful or not.

Thanks @Chris Ellis. You make a very profound observation.

Everyone has contributed a lot to this discussion. Definitely gives me much more perspective and information with which to make a good decision.