All Forum Posts by: Maggie Nickerson

Hello fellow Investors, looking for suggestions on analyzing this current deal that I have on the table.....5year buy,hold,sell

Hi,
Not sure what financial strategy to use for a current  project.  need to borrow $500k for rehab and down payment on the seller assist purchase.  $200k for rehab. Arv $1.4K The Seller is open to terms. Purchase price $989kHere are a few scenarios:1. Seller finance $689,000, $500k from you and 1st lean position bridge loan?2.seller finance 689k , $500k from you from portfolio loan. We own 5 rental properties. 3. Seller finance $689k, $500k from you for fix and flip 24 months4. Seller finance $689K, $500k from you for buy and hold rental 36-60 months
We are open to suggestions, 

Maggie Nickerson

So, with that being said could I get a bridge loan for the downpayment on a land contract with5 year balloon

Greg and Charles, this is a very complex deal with a lot of moving parts. We went under contract for $862,500 for a vacation rental in St. Croix, USVI. AS IS sale, ARV $1.1ml . 30k in repairs. Seller was offering financing from the start, Sellers Attorney drafted the mortgage and note. $200k down total, 50k in EMD balance due at closing, Seller financing the balance over 20 years @ 4.75% Originally during the due diligence period the financials, P&L, copy of the booking site past and upcoming rentals all added up to a sensible ROI, at the least the property would pay for itself. Our plan was to keep it running as a short term rental as is, all the business pieces were there including a on site caretaker to manage the bookings, house guests needs and the property maintenance. This is why we purchased the business LLC and all its assets including all booking sites, web presence, client and vendor list and transfers of all USVI legal documents such as business license, LLC, etc.....

We were originally scheduled to close 8/25/17 that did not happen due to Seller not having a certificate of good standing, expired business license and the survey came back with encroachments, a neighboring fence.

-Everything has been taken care of now by the Seller however the title company put a special exception on the encroaching fence, (not sure what that means) 

-before we signed the contract the seller showed us that there was a booking for 3 months which would net us 50k in our minds that would pay back the EMD and we saw on the Sellers books that the property paid for itself, now this 3 month booking is actually only one week @ 16k, seller explained that the backed out! and there are 0 bookings for the entire winter season, which seems strange to us due to the income from the financials show different from the past 10 year rental history the seller shared with us.

- It states in our contract that the Seller must continue with managing the property as usual and we the buyers would pay the Seller 20% for any bookings made by seller during this contract period for bookings made past the closing date.  I do not feel as though the property is being managed as usual or the financials the seller submitted are false. 

How can I possibly prove that?  Our  concern is that the property will not pay for itself and will actually drain our bank account. This is why we are willing to loose 50k instead of 200k or even the financed amount of $662,500. 

Contract Here is a Onedrive link to the contract

Thank you in advance,

Maggie

Hello fellow BP's

In a pinch!

How can I back out of an accepted offer 2 days to closing? I have an accepted offer on an LLC short term rental, I put up $50k EMD wired, certified funds to my Agent. I understand that at this point in the game I have probably lost the 50k if I back out know, not easy to swallow. The Seller has offered to hold the note for 20 years however I do not agree with the final terms, is that enough to back out at this point and still get my EMD back?

Thank you in advance,

Maggie

Good stuff, makes perfect sense 

Thank you for your quick response, makes sense 

Good morning fellow BP's,

When purchasing a property that is owned by the LLC how do you, as the buyer protect yourself from prior leans or debt taken on by the current member (seller)

I'm considering purchasing an income property, a vacation holding and I am wanting to buy the business, name, website, media accounts, reputation, customer list and established vendors.

What would be the best strategy for this type of purchase, I want to protect myself from prior LLC member debt.

Thank you in advance,

Maggie

So market value is the value of the property before repairs, and not  necessarily the list price 😀

How would you determine market value? 

I determine ARV with sold and pending comps.

Maggie

Good morning fellow BP's

There seems to be no standard answer to this question, I would like clarification on  the difference between Market value and after repair value...seems one of the same to me.

Thank you in advance,

Maggie

good morning fellow BPs ,  I am reaching out to find  strategies for purchasing a primary residence.

We have been investors since 2010 fix and flip, buy-and-hold and getting ready to get into commercial. For our primary residence we run the numbers as if it was a fix and flip however we live there and use the property as our primary and home office so that we do get the tax benefit and sell within that 2 to 5 your period so we don't have to pay the capital Gaines. Perhaps there is a better strategy for analyzing the numbers for a primary and looking for better or best way to structure the deal. Typically we have gone conventional financing for our primary however that does affect our DTI when we are trying to get into commercial and building our rental portfolio this year we want to keep our DTI down and our credit score up as well as as much available liquidity as possible.

Any suggestions on how to analyze the numbers for a primary, what would be the MAO if holding for 5 years then sell. How do you analyze or predict the market growth to determine the value

Are there any private lenders out there that will lend for 5 years for primary residence.

How do you feel about owner financing, what would be the best way to structure Seller take back with deferred, interest only payments, add an equity split to the backend?

We have several properties in mind to purchase/rehab, hold for 2-5 years as our primary then sell.

Just trying to leverage all of our deals without effecting our purchase abitility 

Thanks in advance,

Maggie