All Forum Posts by: James Greenwood

@Dave Foster 

So, its 5 acres in Montana seven miles out of a town with 60,000 population. Its pretty much mobile homes here and there on 5-20 acre parcels around it--all gravel roads, little hobby farms, people that work in the city but want to live out of town for a little cheaper etc. Its buildable but the home location would need to be built up on a mound out of the flood plain; all the other homes around it have the same issue. 

I have a friend there that was shopping for a house. His realtor mentioned this cheap 5 acre property that he needed to sell for a woman who obtained it when her brother passed away. So, my friend told me (in passing) and a few days later it dawned on me that I could buy it. I called his realtor and after a month of deliberating I purchased it for $6k.

My biggest hangup....I asked my grandpa who used commercial real estate for retirement what he thought of the deal, fully thinking that he would give me an "atta boy, go for it". Instead he told me he would never buy something that far away that he couldn't manage. I determined that he was investing in a totally different era with no internet, long distance phone call charges, and a 1970 international truck for travel. He's also thinking in terms of managing commercial warehouse buildings. It was hard to go for it, but I did and he never asked about it again. 

I countered at $15 today and it was accepted!!!

@Natalie Kolodij

Great advice!

But I should add that upon thinking about it more its been over 9 months and this is the first offer. 

I was planning to counter-offer today at $14,000. $10k down, with four $1,000 payments at the same interest rate. For me its a "bird in hand is better than two in a bush" scenario. If this offer came 30 days into listing I think I would take your advice and stay at $19,000 but I don't want to blow my only offer. 

What are your thoughts?

Maybe come back at $15,000 and five months of payments?

@Dave Foster Thanks so much for your concise advice and encouragement; your response was most helpful.

I will skip pursuing a 1031 on this one. Its good to know that the 1031 is not a DIY thing.

Hello!

Seeking any advice from the pros on owner finance and 1031 exchange. Thanks in advance!

I purchased an inexpensive 5 acre property out of state (1000 miles) for two reasons. 1 to gain experience and confidence in RE investing. And 2 to make a profit. I have never physically been to the property.

I purchased it for $6,000, listed it for $19,000 with an option for owner finance. Today I received an offer for $13,000. $10,000 down with three $1,000 payments at 6% interest over the next three months. My agent is suggesting a trust indenture over a deed of trust.

I'm happy with this offer as its the first in 6 months. Are there any red flags, warnings, tips etc that anyone has for me in regard to the owner financing?

My second question is... can I do a 1031 exchange with this property?

Is it worth it on such a small deal?

If so, how do I set up a 1031?

Do I need to hire someone to file it for me?

If I 1031 it but don't find a new deal in time, will I default back to paying capital gains taxes? Or I am I obligated to find a deal?

I have been actively looking and preparing to purchase a $50k-$60-range single family rental in my local market. It would be great if I could pull off a 1031 early on in my experience so that I will be more familiar with it for bigger deals in the future.

Thanks

Hello!

Seeking any advice from the pros on owner finance and 1031 exchange. Thanks in advance!

I purchased an inexpensive 5 acre property out of state (1000 miles) for two reasons. 1 to gain experience and confidence in RE investing. And 2 to make a profit. I have never physically been to the property. 

I purchased it for $6,000, listed it for $19,000 with an option for owner finance. Today I received an offer for $13,000.  $10,000 down with three $1,000 payments at 6% interest over the next three months. My agent is suggesting a trust indenture over a deed of trust.

I'm happy with this offer as its the first in 6 months. Are there any red flags, warnings, tips etc that anyone has for me in doing the financing? 

My second question is... can I do a 1031 exchange with this property?

Is it worth it on such a small deal? 

If so, how do I set up a 1031? 

Do I need to hire someone to file it for me?

If I 1031 it but don't find a new deal in time, will I default back to paying capital gains taxes? Or I am I obligated to find a deal?

I have been actively looking and preparing to purchase a $50k-range single family rental in my local market. It would be great if I could pull off a 1031 early on in my experience so that I will be more familiar with it for bigger deals in the future. 

Thanks 

Hello BP crowd, my first post here!

Can anyone recommend a manufactured home company in Northern California or within reasonable shipping distance to Nor Ca? 

I am weighing my options for developing a city lot that we have in a small town.

Any recommendations or first hand experiece (good or bad) would be appreciated.