All Forum Posts by: Mark Betche

Thanks guys, these are all very helpful tips.

What is your formula for making an offer?
Do you have a specific minimum for ROI?
What factors do you consider to determine your offer?

As a newbie, I expect that I would attempt to buy a property below market value, how much is your norm?

I would expect that I would attemp to calculate my expenses in a property and rent it for a certain percentage above those costs(maybe different returns based on my initial investment) involved in the purchase and preparation for renting.

What is the most profitable price range to buy for hold and rent in a low COLA?

Feel free to answer all or one of these questions. I am looking for some input on making a sound first deal. My thought is to find a price range that gets more desirable rentors, make an offer at least 20% below market value, and figure a minimum ROI of 12%.

Your thoughts?

IMO, there should be no government intrusion into the housing or other markets for thea matter.

F&F going out of business would be great, in the longterm, for free market forces. It would stablilize the housing market and reward those who use good personal financial habbits.

I've heard there is a three teir possibility for the governments continued intrusion into the housing market which keeps FHA alive in all.

http://www.cnsnews.com/news/article/obama-administration-offer-three-solutio

I forgot to mention that when I do a FSBO deal, I get a state legal bill of sale and negotiate the contract with the other party. This is not that big a deal, you just need to know your contingencies and wants.

The title company handles the closing legalities.

Here in Oklahoma, I just let the title company handle the paper work.

I have FSBO twice and bought once from an FSBO. It was a very easy process.

What about with Roth IRA contributions?

Buying the whole property at a later date is most likely. His son works with him now and he is attempting to groom him for future ownership of his company.

I don't want to wait for that outcome, I just want to get ownership of my area and upgrade it for now.

P NW,

I've been in this building for 20 years, it is in a good location for my business and getting 30% interest now and possible full interest later is a good investment for my personal business needs. I have done much looking and this is the best deal I can make so far.

I really only want this interest in the building to protect my investment into the roof. The shop area is big for my needs and the price is right, I just need the roof repaired.

Ralph,

This is an investment proposal. The building has many issues, it is in a flood zone(it has flooded 5 times in the last 18 years), it needs updating for electric and the roof is near gone. It shares water and gas.

The whole building is about 17k sq. ft., I rent 4k of that.

My investment is not only roof repair and past rent, it includes past upkeep as well. The investment will raise the overall value of the property. I am comfortable with my offer.

I question whether the transfer of 30% interest in the building without money changing hands between my uncle and I constitues a gift. I would think that sweat equity and paying for repairs would constitute payment.

I hope I'm in the right place, it has been a while since I have visited.

I am making an offer to my uncle on a building I rent a portion of. I have rented this area for 18 years from him.

The roof is in need of much repair and he does not want to invest money into the roof. I want to buy 30% of the building with my past rent as an consideration and invest approximatly 20k into the roof and other needs.

I am offering him this deal for 30% ownership in the property. I have requested a par value estimate of the building at 120k, my area would be about 30% of the property. This arrangement is to protect my investment into the property.

My question is: What are the tax implications of this arrangement?
And, what other considerations do I need to address?