All Forum Posts by: David Hanor

Yes--I work with commercial lenders on all of my deals which are all 4 plex and under. Check out the local banks in your area. I have two that only operate in a three county radius and a few national banks that are being very aggressive with real estate lending. Your huge banks like Wells Fargo and Chase aren't going to help you out so think smaller is better. 

I've worked with several commercial lenders who will take future rent rolls into account when evaluating income. That might be a good option for you if DTI is an issue. A lot of local lenders are offering great terms on fix rated 15 or 20 year loans. It's not as much cash flow as a 30 year loan but if you have to spread the loan out over 30 years to make it work, is it really a deal?

If you're doing this to lower your DTI, you would also need to refinance your first property into a commercial loan through that LLC. The FHA loan will follow your personal credit regardless of how the house is titled.

Would you live in your third property and rent your second out or just go straight to rental on your third property? Might need to look at private lenders or hard money to BRRR unless you have a 15-25% downpayment to buy.

Hey Jason, I'm not going to the BP conference but I"m always happy to go grab coffee or a beer sometime and chat. I'm in Greenville and BRRR single families now. Would like to grow to 5-10 unit multi-families if you have any experience in that.

I understand it’s more about time in the market rather than timing the market. I assume this adage holds true with real estate too. I also understand that no one can really predict a true recession.

With all that in mind and the market going haywire, is anyone else pumping the brakes on BRRR investing or being more cautious? My only concern is getting caught with my pants down with high interest rate debt before I can refinance on a secured loan. Or assuming higher ARVs at the beginning of the deal but seeing a dip towards the end.

 Just sent both to your gmail. Honestly I’d shop them both and get a feel for what’s best for you.

I’ve worked with Curtis Rush at Synovus Bank and Colby Ebert at Iberia. Both are in Greenville but can obviously help. I can email you contact info 

@Bill Plymouth @Jay Hinrichs

Thanks for the info. I only do buy and holds so I am not an expert (or CPA) but from everything I've read about 1031 exchanges is that you do it to avoid capital gains. Capital gains tax on real estate held less than 1 year is taxed at ordinary income and at 1 year + is 0, 15 or 20% depending on taxable income level. Regardless of when you sell, it's still a "capital gain" by definition. 

I don't see anything about intent for 1031 on what you're going to do with the property being sold.  I'm looking at the IRS website but maybe there's something buried in the code that's not readily visible. 

Yes, of course you pay taxes on any profit. You should work with a CPA who specializes in real estate so you can minimize your burden though.

You can avoid this only by doing a 1031 exchange into another property.

Do you already have the LLC set up? If not, that's super easy to do with the Sec of State.

My real estate attorney is Eric Coldiron at Shuler Law. He can also travel to you to make your life a little easier.

http://www.bshulerlaw.com/