All Forum Posts by: Chris Battaglia

Are there other factors outside of the rate increase that have you wanting to cancel the contract? Seems like the rates wouldn't have changed enough in that timeframe to significantly impact your numbers, but I don't know any specifics of the deal. You've got something you were once interested in under contract and now you'd have to start over, so if there's any way to salvage it/make it make sense that's what I'd be trying to do.

@Chris Seveney what do you recommend for learning more on the notes topic? I've seen it discussed lightly on the forums but never looked into it too much.

 @Chris Seveney I agree, thinking he'll have a hard time selling as well. I guess if someone isn't in a hurry and doesn't have the cash, it could be a good opportunity. For me, having the cash, having to wait 3 years, and pay interest on a loan I don't need doesn't make sense. We really like the land so I'm trying to come up with a compromise but the seller is a stubborn older gentleman.

I've got an opportunity to acquire a large piece of raw land from a seller, but there are a few things that don't sit right with me. He bought the land for much less than I'm paying (still a great deal) and is concerned about capital gains. As a result, he will only spread the sale out over 3 years for tax purposes (1/3 due each year). This isn't ideal, because I'd imagine the bank will not loan on this property for new construction until it's in my name. The second issue is that he wants to seller finance the property at 4-5% (great rate) during this period. Great rate, but I'm effectively paying interest that isn't necessary due to having the cash to buy the property outright. I suppose I could put the funds in a high yield or something to cover the interest, but I'd really just like to buy the property in full and move on. Any deal structure ideas that would be a compromise for us both?

 Thank you! Going to try going down the rabbit hole a bit more with it.

 Thanks for the insight!

I'm looking at a property on a small lake that would be used as a STR but have heard from a few locals that all properties surrounding the lake have a deed restriction preventing renting. My understanding was this happened many decades ago (in the 1930s potentially?). I dug into some deeds on file and found the most current deed does not make mention of this rental restriction, but there are deeds a few owners back that do make note of the restriction. My question, even if this is no longer called out specifically on the current deed, is it still there and enforceable? STR in the area isn't prohibited and there is no HOA, but I don't want to buy a property and have a disgruntled neighbor point to the deed and sue me for renting. Any help would be appreciated!

@Nikki Nguyen biggest my advice would be make sure you know what you're buying and who your target audience is for selling it. Land seems fairly easy on the surface, but there can be a lot of nuances. Is it in a wetland and more or less useless unless used for recreation? Can it be built on and if so, what can be built on it? Is there a current survey available? Are there any weird easements or right of ways that would turn a buyer off? Are you comfortable holding the land and the expenses associated with that if there is no passive income such as farm leases available in the meantime?

As someone that has used STRs but doesn't own one, I would not rent a STR that requires additional agreements/paperwork imposed by the owner. I'd assume that the host is more likely to be problematic (i.e. "you left a towel in the bathroom instead of the laundry room") and move on to the next one. I don't blame people that are implementing this but just some honest feedback from your potential customer.

Hey Luke, I agree with you completley. I'm in a spot where I'm looking to add more real estate to my portfolio and having cash readily available gives me peace of mind. Having money tied up or subject to penalty/restrictions if moved around is not worth any minimal gain it might see in the short term (for my purposes). Market volatility as you mentioned poses another risk that I'm not interested in as these funds are for real estate.