All Forum Posts by: Lamont Marable

Would this be a good way to locate a contractor with a license https://elicense4.com.ohio.gov/Lookup/LicenseLookup.aspx in Cincinnati Ohio?

I'm looking for a recommendation for a general contractor that can help with a 9-unit multifamily project which is going to be a heavy lift. 

Any recommendations?

Thanks big @Ken Latchers

Thanks for name-dropping @Lisa T. as we should know in the community who is on BS time versus, exceptional works.

Hello BP,

It's been an extremely long time since my last post...years! 

Who are some of the big players in Self Storage outside of John Lenhart in the Cincinnati market?  My team and I will be in the market so I'm looking to rub elbows and scratch a few itchy backs while I'm there.  

Thanks, BP.

It's been a while so I hope this is the right section to have this question answered.

Hello BP,

I have a seller that has a property for $150k but is willing to go down $130k. ARV is about $280k - $306k but it needs about $75k to 90k of work. I want to structure a JV deal with the seller. They will continue owning the property and I bring in a team to do the rehab work. If agreed, what should be stated in the and should I go through an attorney to outline the contract? What other obstacles could come up?

Hello BP. 

Question.  Is it true that for the first year a seller doesn't have to pay taxes on a seller financing structured deal?  How is it taxed in other years, as ordinary income tax?  Also, what if the deal was structured with zero percent interest, is there a benefit for the seller in terms of taxes?

I saw this in the tax code form 537, how does this apply in the above situation?

"Interest Income

You must report interest as ordinary income. In-
terest is generally not included in a down pay-
ment. However, you may have to treat part of

each later payment as interest, even if it’s not
called interest in your agreement with the buyer.

Interest provided in the agreement is called sta-
ted interest. If the agreement doesn’t provide

for enough stated interest, there may be unsta-
ted interest or original issue discount (OID). See

Unstated Interest and Original Issue Discount"

I want to submit an offer for 2 duplexes and the asking price is $190k. What do you think of these options and I want to submit an offer for #4 for seller financing but can’t think of an offer that will work. Any suggestions?

“Hello X,

We greatly appreciate you for responding. We love the location and this will be my first property out-of-state so my wife and I look forward to this opportunity. Regardless, I can give you a few options for your consideration that I know without a doubt that you’ll pick one. Which one works for you?

Option #1 - $135k no contingencies As-Is for both properties

Option #2 - $150k with an appraisal and inspection

Option #3 - $165k with seller financing for 25% closing cost at a 5% interest only rate for 3 years.

Option #4 - $175k seller financing

Option #5 - None of the Above”

Thanks Bee to the Pee!

A wholesaler disclosed this property in Ohio to me and here's what he said: "All I really have on it right now is the address is 7XXX ---- avenue. Rehab will be close to $60k ish, because it has a septic tank that needs to be hooked up to sewer. Half the units have been updated. It’s located in Elyria township. Brings in $5100 gross, just needs a great rehab. I only have like 6 pictures will get more this weekend"

My concern is the septic tank which is something that brings me nightmares.  How would you approach this deal with limited detail?

In the meantime, where are the Dayton investors meeting now?

I heard a podcast where I decided to reach out to the guest investor as he touched on a topic that was informative to what I needed. He said it would be $300 for the first hour and that he would help me with the entire process of purchasing my first deal out-of-state with no additional charge.

I’m typically use to researching and asking questions on BP. Do you think I’m overthinking it? Should I reach out and take the offer or am I being cheap?

Her are some of the questions that he will touch on during our conversation:

Just a few questions to think about which I’m sure you already did, but

Are they zoned for 4 unit conversions into 5 units? Would it be 100% legal?

Would you use a commercial lender since you will be going from a residential property to commercial?

Build out costs and how you would get those back? Cash out refinance?

Do you have great contractors lined up? Things can go wrong with larger projects really fast.

Also, I can probably supply you an operating agreement as well if you would like for much cheaper than a lawyer.