All Forum Posts by: Michael L.

Shoot…I didn’t get that memo. The conference room is open for us! If you still want to come by. 

Hello,
I recently went under contract on a plot of land in Phoenix. I'm looking for a partner to help subdivide it into 3 parcels and then I will build the houses. As I'm a General Contractor and have lots of experience in building new homes. I have the deal and now I need some help on the financial side.
Message me for more details.

Thank you,

Michael

Hello,

I'm getting ready to finish a new build and I'm having trouble deciding if I should live in the house for 2 years in order to benefit from capital gain taxes and have a large chunk of equity or sell it and make a profit. 

Numbers if selling

Cost of building house: 450k

Can sell house for 550k

Profit: roughly 100k

Numbers if living:

Mortgage: 2300

Utilities: 200

Total: 2500

As you can see it would be a large mortgage to take on from my current rent payments of $550. 

My dilemma for me is the tax liability associated with both situations. In my opinion if I live in it I won't have such a large tax burden but if I sell it I will have to pay a ton of taxes right off the bat. However if I do sell it I will have a large chunk of money to continue in my RE career and can keep flipping houses and building. 

What do you guys think? Sell it or live in it. 

Hello,

I'm interested in purchasing some turn key properties in Florida. I have about 70k to put in. Any direction is welcomed. 

Hello folks,

So I have a guy looking to sell me his vacant lots. I plan to wholesale the dirt after it get under contract. :) My question to the brilliant minds of the community is... the guy is insisting i use an MLS land contract for the deal and I have pushing to use my one-page contract, what would you use to tie it up?

What would you recommend? Do I have more protection with the land contract?

Also I would like to note that the seller is a real estate agent and he had the lots listed. They aren't listed anymore

Furthermore this is in Arizona. Phoenix precisely

Your help is greatly appreciated.

Thank you

@Brent Coombs I ended up flipping it. Closing this Monday with a sale price of 135k

Purchase price: 90k

Rehab: 12k

Closing Costs: 10450

Profit: 22,550

It turned out to be w good project for this market. I'll take this money and go get another one!

This was my first flip :)

@Andres Rossini also one other questions did you have the condo under your name or an LLC?

Thanks @Andres Rossini this has been a ton of help. Another quick question - did you present your deal in a nice way(cover page,financial data, etc.) to the bank like @Brandon Turner always recommends?

Hey @Andres Rossini

This is really interesting. Was this your first investment property? Was the credit union worried about experience at all? (this will be my first deal) 

Did you decide wait 6 months because that's when you just happened to finish your rehab or did you wait 6 months because that's what they told you before they would even consider lending to you??

Again thanks for your all the help!!

@Kevin Yoo Thanks for the heads up. 

I'm meeting with B2R tomorrow. I'll try and set up something with Renova. I'll keep you updated.

My concern - is that there really isn't that much repair to do. The house as it sits is in pretty good condition. I talked to a couple of lenders today and they said they might be able to give me a cash out refi after i put money into the house for repairs but really there isn't that much to do to make it rent ready. Even the little work that's needed would take me about 3/4 weeks to get done. I guess if the minimum "seasoning" i can get away with is 6 months i'll just have to calculate that into my expenses and see if the deal still makes sense.