All Forum Posts by: David H.

  have you considered a mixed use to rent as homes

  what did you guys end up doing? I'm also looking to cash out refi my cash flowing assets, and I also have more than ten. I'm running into the same problem as you, except I don't have the debt. Seems like banks have a rule against landlords who have a lot of units regardless of the amount of debt. I'm not really sure how or why having more assets makes the loan more risky, but that's how they underwrite.

let me know what you've found.

I'm interested in this as well. I have some real estate that cash flows nicely, and I'm looking for a cash out refi.

 Is that Brandt Sr? I talked to him the other day. He seemed like a straight shooter who knows how to make money and was familiar with the local real estate.

what are the terms of your portfolio loans like, and what was the benefit over doing individual loans?

what's your rationale for not using the 1031? Paying tax later is always better than paying taxes every time you sell. It's the classic case for the ira or 401k. For small deals, the $800 fee isn't worth the trouble. For a multi million dollar deal, spend some time and money to save some taxes that you can reinvest in more property.

as for private lending, what went bad? Assuming you can underwrite an asset, get an appraisal, and hire a title attorney to handle the transaction, you should be able to make money.

I'm surprised to be the first to respond. I had the same problem when trying to refinance. They wanted a $500k minimum deal size. Someone recommended that i deploy that capital as a private money lender. You can charge 4%+1%/mo. If you turn over the money twice a year, that's 20%.

if you're selling assets, why don't you 1031 into another property to avoid capital gains taxes? Buy a cash flow property then refinance it to avoid losing 35% of your gains to taxes.

keep in mind there's an acquisition cost to recoup with each tenant, and signing them up for a one year term is generally a good idea to manage cash flow. I also want to manage timing of expirations. If all my leases ended in December, I'd be stuck finding tenants for all of my places in the middle of winter. If you've been at this game a while, you know how hard this is.

I've been letting them go month to month after they meet the one year minimum and don't raise rent. I find that disturbing the status quo initiates a shopping experience for the tenant, so be prepared for some turnover if you want annual extensions and rent increases. Cheaper to just keep paying tenants paying.

In one case, I had a tenant for over five years. At some point you have to raise rent, so I did. She agreed to stay for a few months and said she would leave after the months. Now she's saying she'll be there another six months.

moral is, sometimes it makes sense to allow mtm leases without a big surcharge. Just manage them properly so you have some balance in the lease expirations.

so how do you manage the office? What if one of the "roommates" is there and steals from the other? What about things like housekeeping and printers, etc? Is the space very separated?

@Wendell De Guzman how is your office building coming along?

@Jimmy H. how did this work?  

I'm trying to lease my vacant office, but something isn't working.