All Forum Posts by: David Walkotten

@Mike Pincumbe talk to Jason Bott (above) and The Buckham Agency (Jeff Buckham). Those 2 guys should get you the best rates around. 

Welcome, Paul! A fellow Beer City USA RE investor here and happy to network. 

No, this is not normal. Tell the broker you cannot make a fair price valuation without the historicals. Ask for a T-12 and you should be good information-wise. 

Tell the broker your price range? Not in an offer... just verbally/via email or something to keep him/her on the hook. 

Worst case, give them a LOI (letter of intent).

Thanks Brian Garrett - technically I own 51.5/89 with my equity position.

If the numbers work, do it and don’t look back. I’ve bought 25 units and have another 64 closing within a month. No cash of my own on anything. You will need to make sure the loan product can be piggybacked and that the seller is okay with 2nd mortgage position- as the lender will get the 1st position.

Hi CPAs familiar with 1031s, I have a question.

My business partner and I may want to do a 1031 exchange on 2 real estate properties. Here is the scenario:

1. We're Selling a duplex for ~$115k from my partner and my joint LLC.

2. We're Buying a 24-unit for $760k in a new LLC with a 3rd partner. The equity breakdown is 33% per equity partner.

I think this meets all the timing and exchange requirements, except I am looking for your guidance on the following:

1. Does a 1031 exchange need to be within the same LLC?

2. Does the exchange need to happen within the same ownership structure (50/50, like the duplex)?

Ultimately, can we legally fall under a 1031 exchange with this duplex and this 24-unit property that has a different ownership structure?

Raise another 50k of private money.

In my case, I insured 90k properties for just above our cost basis, around 50k. Replacement would probably be ~140k. To be worth the higher risk and ins premium savings , you will probably want a decent spread between replacement cost and how much you choose for ACV. Maybe 50%?

Justin, talk to Mercantile or United Bank

It primarily depends on your risk tolerance. Replacement cost is safest and most expensive - the insurer calculates the price to rebuild new to current condition in the event of a loss. ACV you can pick a lower value and insure less, paying less. Kicker is that everything major is on a depreciating basis. For example if your 30-yr roof has 10 years left on it and costs 10k to replace, in a loss you would only get 3.33k in insurance money. If you can afford a little more risk, go ACV with an umbrella liability on the group. It will save you quite a bit. If you want to play it safe and are tight, go replacement with low deductibles. Hope that helps