All Forum Posts by: Daniel J.

My father in law has some raw land in several areas that he purchased quite a few years ago as speculative land purchases that ended up not going right. He has had them for sale, but not spent much time on them. They are in Arizona (AZ) and Colorado (CO), and they are all larger tracts of land. Is there an ok chance of them selling through BP or does anyone have another suggestion on how to market them? I really it is somewhat vague but I'm not sure what else to ask. He also has a large hunters cabin or vacantion home on property in Colorado as well.

Thanks!

Daniel

Bryan,

Welcome to BP! It is a fantastic wealth of resources. I'm in the same area as well, I'm new but if you have any questions that I can help with I'm more than happy to help.

Daniel

@Tim Greenfield

It looks like in example 2 you are figuring your vacancy and maintenance twice for the lower cash flow. The 50% rule includes those in its estimate. It is supposed to be an estimate of all your possible general expenses, outside of say flood insurance, HOA etc. Your quick analysis numbers for that 2nd example look correct for a cash flow of $102 assuming you have a solid idea of what your mortgage would be. I learned a ton from a post I made relatively recently that you can find here. https://www.biggerpockets.com/forums/432/topics/36...

Everyone was very helpful with their thoughts, but @ben leybovichs comments I found the most helpful.

@James Lusk How does that work if it's a 5 year loan but no ballon if it's amortized over 30 years?

@Bryan O. Ok, thanks! I really appreciate the insight!

@Elias Camhi That is very true, it's always nice to let someone else take care of the harder stuff!

@Bryan O. I have heard it's hard to get an LLC funded in the beginning because of a lack of history. Does that not really apply if you are the personal guarantee? Would you also be looking at more like a 15-20 year note as well?

I'm not sure if he has looked into that kind of thing or not. I also don't think he would have enough for a 50% down payment on our area, though I could be wrong.

@Christopher Smith Thanks!

@Simon Gill Thanks!

@Bryan O. So then I would be solely responsible as it were to make sure the loan did not default?

Would it be a commercial loan because it's being loaned to an LLC not a person?

Thanks!

Anyone have any thoughts?