All Forum Posts by: Jon Ankenbauer

Thank you for the response @Bill B.!  Yes, the intention is to build a primary residence for my family to move into.  We wouldn't plan to sell the property anytime soon so I would think we could avoid the capital gains with it becoming our primary residence.

Can you please elaborate on the partner idea?  Would this be more in line with the "gifting" approach?  Or simply just leave it in their name?

Thank you @Drew Sygit, I hadn't considered the lien position of the lender in regards to the land.

My wife and I are looking to purchase a piece of vacant land from her parents.  My in-laws own the property free and clear and it is part of 3 contiguous lots that they own (they live on 1 lot and there is another lot separating their lot from the lot we intend to purchase).  My question is; what is the best way to put the property in our name?  We are being conscious of property tax on a vacant piece of land (our potential liability) as well as the potential capital gains taxes (their potential liability).  Their cost basis is about $33k, the agreed upon purchase price is $250K and the expected appraisal might be around $350k-$400k.  They have agreed to sell it using seller financing.  

We intend to hold the property in our name for at least 12 months before starting construction.  In speaking with a lender, I am told that the equity in the property can be used as collateral against the loan if owned for at least 1 year.  This would allow us to come to the table with less funds out of pocket on the front end when starting construction.

Is the best way to complete the transfer of ownership through a traditional sale registered with the county?  Is there a way to utilize the "gift" feature illustrated in the tax code?  Should it simply be left in a trust and payments made to the trust?  I know there are a lot of options, especially since they are family and willing to carry the loan.  Which direction should be be looking?

 Thank you, @Sarah Hatton. Sounds like I need to do a little more research. I am not familiar with the difference between DSCR and conventional lending. From the way your response was worded, I am guessing the loan programs offered may differ by the specific lender?

 Thanks, Nick.  I am not currently working with a broker.  I just started my journey to get financing details when I came across my question above.  Doing my due diligence to plan ahead as much as I can.

 Thank you, Jay.  Yes, he was saying that because it was a hard money loan that there was no seasoning requirement.  From what I had read that didn't sound correct.  Thanks for the info.

I am looking to complete a BRRRR (is it still possible to do these??) and have started calling on local credit unions to discuss the refinancing portion of the transaction. In my most recent call I was told that if the original loan was secured using hard money then no seasoning period would apply since that is a Freddie/Fanny regulation. Is this true? Do seasoning periods only apply when using traditional financing?

Hey @Matt M., I am going to have to agree with you Angi's input.  I don't have a set part of town at the moment but am looking in the metro area.

Thank you @Angel Gonzalez!  I will give Scott a call!

Thanks for the input @Grace Wang.  Unfortunately, I have been having issues with companies calling me back which what has led me to look for recommendations outside of Angi's.

Hello BP, I am looking for recommendations for a general contractor in the Denver area that would be able to take on a flip of either a SFR or a small multi-family (2-4 units). Thank you in advance for your recommendations!