All Forum Posts by: Chris Isaacson

Hello,

If you have 2 properties cross collateralized with 1 lender and you sell 1 of the properties can you roll the equity to the other property with out taking a pay out of taxable profit/income?

For example: Property 1 Loan amount $300k, Property 2 Loan amount $200k 

You sell property 2 for $400k which equates to $200k "profit" that is rolled to pay down on the $300k note. Note balance on only remaining property is now $100k.

@Scott Sinan

What area of Tahoe is the lot? Are you dealing with TRPA or the county? 

Do you work full time in the bay area? 

I am a little confused as to the value of your partnership. If they are profiting from the build and realtor commission then why not just hire them? You still get the benefit of their experience and I think it would be a less complicated arrangement. Vice versa, they can buy a lot and build, what value do you bring? 

Hi @Aaron Farr are you sure about the timeline being 3 months for a 7 lot split? It has taken me longer than that to do a lot line adjustment in my location. 

Also do you mind sharing a rough idea on cost for your project? (Just the split not the vertical side)

Not to be petty but the Marines didn't storm the beaches at Normandy it was the US Army and allied forces.

@Jeffrey Stasz 

I put them in 2 projects I have going on now. I really like the systems, as @Troy Gandee said "they're more efficient, hypoallergenic, less invasive and the maintenance is easier". I am going to use an informative brochure to hopefully educate buyers because most people don't seem to know what they are or they think they're inferior.

I went with the ceiling cassettes it just looks like a larger register than a standard system. 

I'm an agent and work in the areas you mentioned. I have 3 flips going right now and always trying to line up more. If you want to meet up or check out the projects just pm me.

In your opinion is it better to build in an area that is more expensive to build (i.e. permits, labor, etc.) yet yields a larger profit margin per unit or a market that is less expensive to build with a lower profit margin per unit?

Let’s say for this example that both markets have the same level of market liquidity, however, Market A (expensive) has a longer time frame from start to finish (due to city/county) than Market B (less expensive).

I think @Jason Lewis is right on, you could probably make it work and have some sweat equity but you could probably have the same or more equity with an owner built stick frame. I too have looked at alternative builds and ended up thinking myself in a circle right back to stick framing as the numbers worked better and everybody understands it (tradesmen/zoning/inspectors). It also strays from the norm on the sale and in my personal experience people are not as interested or receptive to purchasing a modular/manufactured home as they are to a traditional build.

@Jay Hinrichs Are you saying European housing is way ahead of the US because they have developments of container homes? I spent some time in Peru and they used anything for a home including trash, but I guess that would be building "green" with recycled materials. Just poking fun because you're from Portland.

I wanted to update this thread for anybody who decides to research the topic. They did end up reducing the price, however, other factors did force me to back out of the transaction.

To clear up something @Russell Brazil said about people walking the property first, I actually believe that is not the case here. Although a good portion of people walk the property first, there is a lot of competition here where investors frequently bid sight unseen and go out to the property once they have a contract.

With that said, I did walk the property prior and the issue wasn't something visible it was that the addition was unpermitted which required retro permitting or removal. I did not find this out until my inquiry came back from the county.

@Damian LoBasso Just my input separate from the question, when making an offer try not to go under the round number. For example you offered $259,999, $1 more and your offer would have read $260,000. Not saying $260,000 would get it but you are now in the 260's and not the 250's. I believe it is good practice, google "charm pricing" or "psychological pricing".

When selling you price under the round number because you want it to appear lower, when purchasing you want your offer to appear stronger/higher without significantly raising it.