All Forum Posts by: Francesca S.

Hello!

I'm selling a land FSBO , and found an interested buyer.

However, I am not sure what are the appropriate next steps since its a FSBO and its land.

Can anyone point me in the right direction in terms of title transfer, exchange of money, contracts?

Thanks!

Thanks all! So Zillow actually allow postings for raw land with no associated address.

Just if anyone is curious, I described the process below:

1. go to this link - http://www.zillow.com/for-sale-by-owner/
2. Instead of an address, just type in the road adjacent to the property in question and fill out the remaining boxes. Press "continue"
3. Zillow will then give you the option to type in the ATN / Parcel Number
4. If the lot Zillow brings up is incorrect, then Zillow presents a map and you can "click" the lot you are trying to sell.
5. Please note that this process only works for raw land.

I am trying to sell a property (FSBO) that has an ATN / Parcel Number but no address. I thought it would be ok to sell on the normal property selling sites, but I can't seem to post properties without an address!

Does anyone know a workaround for this? If not, am I just limited to sites like craigslist, or biggerpockets marketplace?

The property in question is a 360SF studio on a 4.77 acre lot in Wofford Heights, CA. It has a easement but surprisingly no address. 

Any advice? 

Thanks!

Interesting article! Thanks for bringing this up, it will definitely be a consideration when looking at Los Angeles properties. 

Thanks! @Manolo D., 

Hi Zachary,

1. You can use zimas to check the zoning of a specific Los Angeles address as well as see if its in any special regulation zones with its own rules

• http://zimas.lacity.org/

2. Take a look a this pdf which summarizes the general zoning rules

• http://planning.lacity.org/zone_code/Appendices/su...

Good luck!

Hi @michael siekerka, 

1. I appreciate you bringing up the fees that this strategy would incur. Do you happen to know of a alternative method that doesnt incur all the fees, that is still sort of in line with this strategy? 

2. Regarding the 1031 closing period, I was actually thinking that I could wait until I located a property, and then start the 1031 exchange. Is that silly? Are the time frames to difficult to match up?

3. About the number of loans, I thought once a loan is paid off...then the loan is done and you are free to get another one. The goal is to purchase a property, and immediately pay it off before acquiring another one. If this is the case, I am a little confused as to why I would have more than 4 loans? Unless...if a loan is paid off, its still seen as active for a period of time by lenders?

4. I see what you are saying about the track record. Would it be better if I paced the acquisition more to provide a longer and stable track record? For example, a 500K property would be used as a 50% downpayment, and so forth. So the jumps in property values are not as big?

5. I had modeled the strategy with jumps in interest rate every year. The solution that I saw for this was just to choose better and better performing properties as interest rates go up. Along with better performing properties,  I would also have my savings income (which, when modeled, actually doesn't make too much of a difference after a 500K property. The mortgage payments are too large for my personal income to make a difference.) and the 100% cash flow of my other properties without mortgages. 

Thanks @Steve L.,

I've been turning this strategy around in my head (and in excel) for awhile now, and its great to finally get feedback! 

1. I tried to model the scheme as simply as possible. As it is hard to predict market cycles and appreciation / depreciation, I left it out of the equation for now. 

• Thanks for suggesting the 4 loans. Yes that would make sense to max out loans I can get.

2. I hadn't thought of the fees that this method would incur, but you are right to warn me of them. I had wanted to start off with the smaller properties because it probably is the most debt I can acquire at my age and salary (23 / 45K). The mortgage is also at a point where the amount of personal income / savings I can pay every month would make a big difference.  I also just wanted to be able to get started in real estate, and make my beginner mistakes in a smaller / cheaper property.

• Do you think the fees would be worth it as I transition out of the 100K properties and into the bigger ones, 500K+?
• Do you have a solution to the big amount of fees? I know that a cash out refinance would also have fees, but do you think it would an alternative to doing a 1031 exchange / closing fees? 

3. Buying houses at 20-30% under market value would be a great requirement. Thanks for this input!

Hey all,

I was reading Millionaire Real Estate Investor, and stumbled onto a story of a couple who aggressively paid off their properties. They would buy a single property at a time, use a 30 year loan, and pay it off aggressively so it would be paid of in around 2 years -- then rinse and repeat. Each paid-off property's cash flow would then be used to pay the mortgage of the next property.

This strategy was interesting and I wanted to project this model to see how far I could go and what are the cash pay offs at the end of 30 years. So a quick model would look like this:

Year 1

- Purchase Property 1 at 100K

Year 3

- Pay off Property 1.

- Purchase Property 2 at 100K

Year 5

- Pay off Property 2.

- Trade Property 1 in 1031 exchange, use as 20% downpayment for Property 1-2 at 500K

Year 7

- Pay off Property 1-2, use 100% cash flow to pay mortgage of Property 2-2

- Trade Property 2 in 1031 exchange, use as 20% downpayment for Property 2-2 at 500K

Year 9

- Pay off Property 2-2,use 100% cash flow to pay mortgage of Property 2-2

- Trade Property 1-2 in 1031 exchange, use as 30% downpayment (lets say its a commercial property) for Property 1-3 at 1.5 Million

Year 11

- Pay off Property 1-3, use 100% cash flow to pay mortgage of Property 2-2

- Trade Property 2-2in 1031 exchange, use as 30% downpayment (lets say its a commercial property) for Property 2-3 at 1.5 Million

and so on...

So from my understanding, there are some advantages to this strategy:

1. You will only ever have 1 loan in play, so there isn't any trouble of trying to acquire more loans

2. This is a guess, but this scheme probably looks better to lenders, as you are providing a history of not only paying the mortgage, but paying it off quickly. Is this true or not?

3. You are building massive equity in the property, which you could then pull out using a refinance

4. Properties can be traded up with a 1031 exchange.

5. My understanding is, this is a low risk method where you will not over leverage yourself in the debt / equity balance

Cons of the strategy:

1. All of my personal savings and cash flow will be funneled into the mortgage.

2. Since I aim to have 100% equity in each property...if the property sinks in value, so does my net worth?

Questions:

1. Lets say I have 100% equity in a $100,000 Property. Can this property then be traded in a 1031 exchange as a 20% down payment for a $500,000 property? What happens if you have less than 100% equity? What happens if your property appreciates, and you have 100% equity? What happens if your property appreciates, and you only have 50% equity? I am trying to get a feel of how much value the property will have, when it is traded through a 1031 exchange for another property.

2. What are other ways or strategies to reach wealth more quickly with this method? Other than getting private lenders / partners.

3. Would you recommend having 100% equity or less in this scheme?

4. Would YOU pursue this method? why or why not?

I am interested in the taiwan/taipei market as well. @Amy Lin, what makes you say that taipei has no positive cashflow? 

I am looking for insight into the market. Any tips or experiences there would be helpful.