All Forum Posts by: Brad Jacobson

Hey @Account Closed,

What I'd recommend is combining your ideas with the "house hack."  A SBA loan (small business loan) will allow you to buy a commercial space with multiple units as long as your business occupies at least 50% of the building.

You should buy a building with 50% co-working space that would act as your business and one or two more units that you could rent out to other businesses.  Then those other one or two businesses would cover most of your mortgage and your business could own a space without a big monthly debt burden.

Good luck!

Don't change anything.  Don't spend any money.  The gas stove debacle is over and will be history shortly.  

Hey Spencer,

Some of the more premium real estate friendly CPAs will actually do cost segegrations for you on properties under a certain value.  My local CPA will do them for properties under $750k in Utah.

If you don't have a great CPA on your team yet, search one out and see if they'll do it for you or refer you out to someone they recommend.

Good luck,

Hey @Aaron Jones,

Don't worry about the tax rate - just make sure you're including accurate tax numbers in your mortgage estimate.  You can do this by searching for the property on your local county property search and looking at the 2023 tax rate.  If the numbers still work out, you've got a deal!  If the tax rate pushes the mortgage too high, then you know to pass.

Markets typically have to adjust to tax rates.  Utah, where I am, has relatively low taxes and therefore higher property values.  Texas, where one of my best friends invests, has much higher taxes but the property values are much lower to offset that cost.

Good luck!

Hey @Anthony Salazar!

I'm heavily involved in the local meetups in Northern Utah.  These include two in SLC and one in Ogden.

If you do end up this way, hit me up and I'd be happy to introduce you to the market.  It's competitive out here but I've adored my career as a real estate agent and would love to work with more commercial guys to start moving my residential portfolio into bigger assets.

Good luck!

Hey @Sundone Boutvyseth,

Mountain America actually has a private loan program for Utah investment properties that is only 10% down.  I've now used it twice.

The program requires 10% down, must be a rental, no PMI, and has a very high standard of credit.

Last I did it (Summer 2022), my rate landed in the low 5%.  I believe they're almost 8% with that program currently but if it provides an entry point, you should consider it!  Contact me if you'd like a lender recommendation.

On top of the MACU loan, you can buy a STR as a second residence which only requires 10% down as well. I personally haven't done this but I have helped clients do it in the past.

Hit me up if you're interested!

Hey @Carson DuVall,

I'm also from Ogden and am really involved in all the local real estate meetups!  You should come to one of the meetings sometime and we could talk in a lot more detail about potential opportunities and such.

Let me know if you're interested!

Good luck,

Hey @Niraj S.,

Before we can help you determine the best way to structure a seller finance deal, we need to know what your exit strategy is with this property.

Do you plan to hold it for 10+ years with the current owner and others and tenants?  Is it a flip that you'll only own for nine months?  Do you have the means for a conventional financing?  

The cool part of seller finance is the ability to work out terms that can make properties profitable for different scenarios.  You'll just need to determine your exit strategy and then get input on how to make the terms of a seller finance more favorable to both you and the seller based on the long term plan.

Good luck!

100% agree with the liability insurance but would also add the importance of getting a good lease approved by a local attorney or an approved state contract.

The contracts vary state by state so you'll have to find a local pro.  Seek out an investor friendly agent, wholesaler, or real estate attorney near you.

Good luck!