All Forum Posts by: David Roe

If the property has long rental history and the previous owner has records, purchasing the multifamily on an investment loan does not look the same to the bank as you just purchasing a second home.  Since its been only 2 months your Credit pull is still good for another 30 days so you may be able to use the same bank and use the same credit pull to do the loan.  Call and ask them, information is always free, its when you dont ask that costs you!  

This is more of a Tax question, 

Traditional BRRRR would be Buy, Rehab, Rent, Refinance, Repeat and you have no Capital gains on a Refi but you can only pull out 70-75% of the value of the property LTV. Now, if my wife and I buy a property and title in my Wifes name only i can rehab the house, then buy it at the new full LTV of 85% with my local credit union. So $100,000 property i can pull an extra 10,000 n cash out of it. But...

My question is this, Capital Gains... Will I pay capital gains with my Wife and I filling our taxes as combined/married so in short we dont really sell the property when it comes down to our combined Taxes...  Any one know if i pay capital gains or not?

Dave-

haha ok Padhawk, not lock.  Makes sence why i couldnt find it lol 

On show 325 at 1:27:00 he mentions a web service (padlock.com) where you can enter an address and buy the owner information like phone number, loans on the property, ARV, etc.... Google search comes up emtpy, anyone know what he's talkling about?

Dave-

I'm in Dayton Ohio, currently workin 90to150ARV homes, Look to make 20-25k per flip but then purchase the property from myself with WPCU @ 15% down and 4.75% for a 30 year.  Keep 10k + per property and have a free house to rent out.  

Sound like a rat trap, but I know there’s a way. I have my money tied up in another deal right now and this deal came up.

I found a property my Broker brought me that's off market and is his Brother in-law's Mothers house. She got placed in a retirement home and he wants to sell the property, the brother in-law has a POA to sell the property. It needs rehabbed and will probably take 20-25k to update the house and has an ARV of 130k. The brother in-law wants 70k for the place, as an easy quick flip I would be happy making 20k off it but I'm not posting about the deal itself but instead leverage of acquisition of the property.

Can the POA holder seller finance me the property for a few months to allow me to rehab the property, list it and sell it? In my mind I see this more as a partnership/operating agreement to partner with the POA and he does nothing, I rehab the house and list it and sell it while he just allows me to do the work, signs the paper work at closing collects his 70k at closing while I collect the 60k, and out of that I pay back my cost and pay the listing agent.

Am i missing a better way to do this?

LOL, the bank came back and said they dont allow escalation clauses.  LOL so i gave them a little above my previous offer but not much.  I'll let you all know if they accept it.  I am betting they have no other offers or else they would have just taken it instead of playing email tag with me.  

Here is what i came up with for my counter offer.  I am setting a max price i am willing to pay up to.  And offering 1k over their highest offer as long as it is under my max purchase price. If my offer is accepted i am requiring proof of the highest offer they had other than my own.  So example... if they actually have a $35,000 offer I am willing to pay $36,000 as long as they submit a copy of the $35,000 offer to me at or before closing.  This insures trust on both ends and they get the maximum price for their listing.  The date of acceptable offers prevents them from using a fake offer to write up after receiving mine.  

"Thank you for your reply on our cash offer of $24,000 our final offer is as follows. We are willing to purchase the said property up to $1,000 more than your highest submitted offer as of receiving this offer (date) up to a max purchase price of $37,153 cash with a 7 day closing, contingent with proof of "said" submitted highest offer via a copy of "said offer".  this offer is void for any offer excepted after this offer(on this date). 

Thank you. "

Looking at a fix and flip in the Dayton Ohio market, it went to MLS for $39,500 then price dropped to $34,500. I figured 30k in rehab on the property. It sold for $18,100 in Feb 2019 so i offered $24,000 cash deal with 7 day closing in hopes to get it for $28k-30k they would be happy with $5k-10k profit and not touching the house, almost a whole sale deal for them. ARV at max is 100k making the MPP @ $32,700. Instead of a real counter they pulled this:

"Thank you for your offer of $24,000 cash on the above property. Per our terms buyer assumes all closing and deed costs. Property sold in its AS-IS, WHERE-IS'' condition. Seller does not prorate taxes. Buyer pays all closing costs including, but not limited to any and all transfer taxes, title, legal, and recording fees. With our recent price drop, we did receive many offers and are above asking price. We will be taking highest and best offer by Monday. Please reply to this email only, with your buyer’s final offer, full name, current address and proof of funds. If you have any further questions please feel free to contact me. Thanks again!"

1.) They are being honest and have multiple offers and want to squeeze everyone for more cash, but i hesitate only because they didn’t say what that offer amount is.... Also if they had an acceptable offer why wouldn’t they have just accepted it other than to induce a bidding war?

2.) They have no other offers and my numbers were too low, they are trying to get me to bid against myself.

How would you all move forward? What profit numbers would you find acceptable on lower priced homes like this? Would you follow the 70% rule or have a min profit number and offer based on that? Do you think the owner is Full of BS or actually has other offers?

Dave-

@Don Konipol Thank you for the information. I'm curious if there is any leverage with the military bases and getting some sort of partnering with base housing. Base housing fills up pretty quick and the on base housing for E4 and below is Co-shared living dorms. I guess without some sort of terms and agreement with the base the Co-Living thing just won’t work in this area. I spent half my military career in Co-living environments, and once out off base I didn’t like it. I preferred the Co-living while single. It's what i was used to, College is Co-living, Basic is Co-living, Tec school is Co-living, E1-E4 is on base Co living (first 4 years of enlistment or more) upgrade tech schools are Co-living, Deployments are Co-living, PME for SSGT TSGT and SNCO is all Co-living.... Military people are used to it. And like prisoners, once a prisoner has served 30 years in prison and being used to that life they don't know what to do with themselves once released. "Some” Service men and women feel the same way once kicked off base. College students also... Not all but some.