All Forum Posts by: Greg Gallucci

Anyone have a recommendation for books on commerical real estate analysis. Looking for something that goes into detail on the various metrics and how to build models around them.

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Thanks for all the great advice. I like the loan idea but if you are pooling money from multiple investors, how would you structure the loan and wouldn’t that be considered a security?

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Hi BP,

Need some help on deal structure on a small multi family (10 units). Im going to raise money for the deal but wanted to know your thoughts on how to structure it. We will purchase, renovate/reposition and hold the property. What I would like to do is raise funds and avoid having to syndicate and file with the SEC. Is that possible if I just take on partners instead of investors (ie own the building 50/50 with someone else)? The end goal would be to refi and cash out any partners/investors. Does syndication lend itself better to owning a larger piece of the property?

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@Marcus Johnson No where in my response did I suggest not to paying down his mortgage to keep the write off. He should keep that in mind when making his decision. I think it is totally irresponsible to provide people advice when knowing so little about ones situation other that what they post on a forum. The best you can do is provide them with facts that help them come to an educated conclusion.

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Keep in mind if you pay off your Mortgage you lose the interest write off.

Before doing anything you should thoroughly educate yourself. It might make sense to take the money put it in a 3 month CD so you can't access it while you determine what path you take. Don't run into making this decision, walk (very slowly). I can't stress that enough. After working in financial services for 15 years I've seen time and time again people coming into large sums of money only to lose it due to poorly informed decisions. Good luck!

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Originally posted by @Terry Lewis:

Hi Joshua,

Seller Financing is driven now by The Dodd Frank Act, DFA and it's creation of the Consumer Finance Protection Buerau, CFPB to enforce the DFA. Imagine going down a seller financing road and you are the seller. You will come to your first fork in the road and you will need to decide if you are selling the home and seller financing to a consumer or investor. The DFA defines a consumer as an owner occupant personally and or family members. You can go to the CFPB web site consumerfinance.gov for the complete definition. The easiest way to answer this question is, is the buyer and investor to hold as a rental for income and investment. Anything else is going to be consumer. You need to have this answer in writing from the buyer at the inception of the negotiations so you have proof you are not violating the DFA. If you are selling to an investor you are free to make your deal subject to all the other guidelines of your state for loan brokerage, Etc.

If you are going down the fork in the road that is the consumer you need to follow the DFA. There are some exemptions but the law forces you as the seller to hire a Mortgage Loan Originator MLO to underwrite the loan specifically for the borrowers ability to repay, ATR. Again this is a very simple answer and the CFPB web site is the best place to go for answers.

Because it took 6 years to roll out the rules and guidelines of the DFA there is a lot of misinformation on the internet and BP.

Terry Lewis

Seller

Terry,

How is the seller taxed in the event that he is selling (via 100% seller financing) to an investor, but not receiving all the cash up front? Does the IRS consider this constructive receipt? or is the seller just taxed on what they receive from the "mortgage" payments?

Thanks

Greg

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How does the IRS view 100% seller financed real estate deals. Is there seller taxed for the full value of the sale in the year the property is sold (constructive receipt)?

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Could anyone recommend a good title company in the Charlotte MSA

Happy New Year!

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Could anyone recommend a good title company in the Nashville MSA.

Happy New Year!

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Hi @Scott Layson

Lets set up a time to speak. Let more know when you have 15 minutes at some point over the next few days

Thanks

Greg

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Nashville, Tennessee

All Forum Posts by: Greg Gallucci

Greg Gallucci has started 22 posts and replied 38 times.

Post: Commerical real estate analysis

Post: Structuring a multi family deal

Post: Structuring a multi family deal

Post: Should I pay off my mortgage or re-invest my inheritance?

Post: Should I pay off my mortgage or re-invest my inheritance?

Post: Seller Financing

Post: Seller financing

Post: Title Company in the Charlotte MSA

Post: Nashville MSA Title Companies

Post: Looking for Nashville Brokers and Property Managers