All Forum Posts by: Kyle Hood

recent casino was built. 

https://saracenresort.com/

Thanks Dave for the info! Very informative and will pass it on. Fortunately, this wasn’t a big exchange so believe chalking it up as a learning experience. 

There is a qualified intermediary but left some of this up in the air, Bill Exeter helped me out and answered the question.  Hopefully my summary is correct.  Basically, if the equity is greater in the one purchased then the one sold then everything should be fine.  

 Need help BP peeps!  Have a customer that has done a REVERSE 1031 exchange. They identified and purchased a property during last quarter of 2020. They have now went under contract with one of their rentals to complete the 1031.  However, it is an escrow agreement with buyer paying 30k down and annual payments of 25K over next four years.  Attorney handling Reverse 1031 exchange is questioning it with the second part being purchased by escrow agreement.

Does intermediary hold the money until it is paid off and deed exchanged or does intermediary pay the identified property with each installment?  Is it a simple pass through for the intermediary? 

Kyle Hood

Kyle Hood 

Hey Cameron! I am in Russellville and am Broker / owner with Boyd Osborne Realtor Group. Love to get with you. You will enjoy BP and get flooded with info. I can help you know the market here and use principles of BP. 

Kyle Hood  

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $100,000
Cash invested: $1
Sale price: $124,900

purchased with no money down and sold it as an escrow agreement with 50K down. My loan is on a 15 yr term and purchaser's is on a 30 yr term. Their interest rate is 2% above mine. Purchaser to pay off in 3 years. I was able to take the equity I had (roughly $25K) and pay on another project and then the remaining money ($25K) pay down my mortgage to be the same amount as the purchasor's note. Upside - still make a little money in 3 years and possiblilty of having property returned, was able to finance another project. Downside - having sold the duplex.

What made you interested in investing in this type of deal?

I am a Realtor and obviously self employed. Need to save for tommorrow.

How did you find this deal and how did you negotiate it?

It was my H&A guy's property so I knew it had been taken care of. it cashflowed well and new could get in with no money down.

How did you finance this deal?

did it as a construction loan, It appraised at $125K when purchased and was able to get 85% financing.

How did you add value to the deal?

increased rents.

What was the outcome?

turned it into an owner finance deal

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

myself

Investment Info:

Small multi-family (2-4 units) note investment investment.

Purchase price: $100,000
Cash invested: $1
Sale price: $124,900

purchased with no money down and sold it as an escrow agreement with 50K down. My loan is on a 15 yr term and purchaser's is on a 30 yr term. Their interest rate is 2% above mine. Purchaser to pay off in 3 years. I was able to take the equity I had (roughly $25K) and pay on another project and then the remaining money ($25K) pay down my mortgage to be the same amount as the purchasor's note. Upside - still make a little money in 3 years and possiblilty of having property returned, was able to finance another project. Downside - having sold the duplex.

What made you interested in investing in this type of deal?

I am a Realtor and obviously self employed. Need to save for tommorrow.

How did you find this deal and how did you negotiate it?

It was my H&A guy's property so I knew it had been taken care of. it cashflowed well and new could get in with no money down.

How did you finance this deal?

did it as a construction loan, It appraised at $125K when purchased and was able to get 85% financing.

How did you add value to the deal?

increased rents.

What was the outcome?

turned it into an owner finance deal

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

myself