All Forum Posts by: Cheri Banet

If it takes all or most of the proceeds from the sale the settle the debt then there would be little to no income.  

Suppose you have $46,000 mortgage at 8% interest on restaurant, $22,900 SBA loan, $3,900 at 1.75% interest on a microloan, $23,00 on temporary 0% interest credit cards all for the same business totaling $95,000 in debt. Would you do a cash out refinance before you sell, so that when it sells you can show $0 income upon selling the commercial property? Estimated sale price to be $200,000 

Gir the last several weeks all my newsletter emails that I get will not open. No pictures no articles anything. Only the initial headline with no content. 

I have done this with a few of my fix and flips and it has worked out well for me.  The thing you have to worry about is can your credit score take the hit for that period of time.  A big part of your credit score depends on the available unsecured credit lines that you have and the percentage of them you actually use.  I just finished a commercial renovation and used this strategy.  I normally pay my credit balance every month and have excellent credit rating, but because I utilized this strategy my credit score dropped 100 points for a few months.  I utilized my own personal funds to pay off the card I used for the reno after working some overtime at my W-2 job. ( I just listed the property for sale last week) My credit score is close to back up to where it was but I need about 20 more points to get it there.  So you need to be sure this approach won't affect any other deals if you do multiple deals at a time.  Be prepared for your credit to take 3 months to recover. 

Finished out 2016 with 2 buy and hold duplexes purchased in April. One of which my college age daughter is living in as a house hack for college housing. Great Cash flow on these and want to do some more. Doing some upgrades now after saving all the rental funds to get some forced appreciation.  Thinking of selling them in 2018 when she finishes college and utilizing a 1031 exchange.  This will give me time to figure out how to do 1031 exchange as I've listened to books on this subject 3 times but can't quite get my head wrapped around it all. Also, just finished the reno on a commercial property which I purchased in August and listed on December 30th. Check out the listing in under the commercial market place if you're interested. So glad I started real estate investing.  I've had a lot of fund along with the worry and headaches of being a newbie but the payoff has been worth it. I've been off the Bigger Pockets radar for a while working on these deals and I want to see how everyone else did this past year.  

My first was off Facebook Sale or Trade site in my local area in fall of 2013.  Basically someone having a Fire Sale.  They were desperate and I had my cash and cash I borrowed from my parents.  Spent 2 months cleaning up the property, surveyed it and divided into 2 parcels.  Sold the first parcel with the home and made 20,000.  Sold the second parcel of vacant land with utilities on it on a contract for deed that I am receiving payments on right now.  I will make 25,000 principal on it and an additional $14,000 in interest  over the course of the loan.  Not too bad for my first one.  My goal statin was to buy a minimum of 2 investment deals per year and be able to quit my W-2 job at the end of 5 years. Ive done that each year and  I'm right on track!  

For Sale: Newly remodeled 2050 sq. ft. gas station/grill/convenience store located on 1/2 acre +/- at 2834 S State Rd 66 Marengo, IN. Newer plumbing, lights, ceilings, doors and windows. Includes meat slicer, milk shake machine, 6 tables and 24 chairs. ( Also includes pizza oven, deep fryer/grill and miscellaneous freezers and coolers all in AS IS condition. Working condition of these items is unknown.) All waiting for the finishing touches for your new business. Two underground storage tanks for gasoline. One 2,000 gallon and one 8,000 gallon. Copy of last UST inspection is available. Next UST inspection is due July of 2017. Great location just one mile south of Crawford County High School. 7 miles to I-64 & 6 miles to Marengo Cave. Priced to sell at $110,000. Contact Cheri by calling or texting 812-267-8985 for details or to set up a showing. Buyers are advised that seller is a licensed broker.

Quit W-2 in 2 years!

I agree, If you really want to become an investor, then house hack.  Live in the place rent free & only use the minimum down payment.  Find a second deal to use your cash on.  By living in the house you also get the advantage of selling it in 2 years and keeping the profit from sale tax free up to $250,000 for a single family residence.  Since this is a duplex, you will only be able to  taxed on 50% of the gains after 2 years.  

You also need to decide what really is your goal.  I set myself a yearly goal and a 5 year goal to begin my real estate career. Because I've done that I'm staying motivated and on track.  I constantly tell people what these goals are as an affirmation to myself and to help hold me accountable to my goals.  

Have you checked the public records to be sure these vacant properties aren't already bank owned and may be willing to make a deal anyway?  Not sure of the real estate laws where you are, but here banks sit on a foreclosure for one year before listing due to the owners right of redemption law.