All Forum Posts by: Skyler Smith

Sorry @Ryan Dossey !

@Ryan Dossey I would probably chat with any lenders that you have a prior relationship with. If you don't have any relationships built they may ask for more like 6 months to "season" the investment before a refi - but your cash flow is going to make a ton compared to the interest rate your margin account will charge you. I think it's a home run!

I would buy, fix, and hold. Let's take your ARV at $75k, and your hard costs at $48k (25k purchase and 23k as your highest rehab cost) all as you've said

If you took this to a lender, you could pretty easily get 80% LTV in a refinance, so the bank would be willing to pay you $58,000 (assuming 2k of closing costs.) You would get pretty quick access to your capital to get into another deal, plus $10,000 of profit (the same amount of profit as if you'd sold it.) The cash flow should *easily* make the payment, and you have very quick liquidity. Take the cash benefit of a flip and the cash flow of a buy and hold! Infinite rate of return - because after the refi you have no money in the deal.

I'm not a flipper but I do a good deal of market watching in Northern Utah. I feel like the more speculators there are, the better as a whole it will be for the consumers/end users (in general.) you'd have a terrible time flipping off of the MLS in cache valley (I've looked) but I know guys who do flips from leads that they find off market. I've been buying and holding and there are still a lot of great opportunities for that in cache valley. Anyone flipping in Ogden right now? I feel like there is a ton of opportunity down there, lots of very cheap real estate

You would not have any mortgage interest to deduct, so unless your local state or city has some program for it I believe there is no tax benefit. It will only be a great investment, not anything more ;)

Sometimes it can be easier to qualify for conventional financing if you buy your property in your name. Perhaps you could just quit-claim it over to your LLC after closing?

I bought a property on seller financing and the seller had a loan on it, making mine a wraparound mortgage. The title company that was handling the payments would make the seller's mortgage payment and paid the seller whatever was leftover from my payments. The seller will need to check their loan for a "due on sale" clause, which is designed to prevent an owner from offering something like seller financing, requiring the loan be paid off in full when the property changes hands.

I would not rent to this tenant. If you do, A longer lease would put the pressure on and protect you better than a short lease. If they stop paying, they're in breach of contract and you can kick them out anyway.

The seller financing option is exactly what I would try. You eventually lose ownership but you'd get to collect interest the whole term of the loan. If they default you repossess the whole asset and you can start the process over again

I've never really loved that type of business model and I always worry about businesses that charge money for info that's usually available for free. I would never pay up front for that service, But if they'll help you learn and close on a deal, I'd probably be willing to pay for that