All Forum Posts by: Matt Foster

John Adams Mortgage has a "2nd look program."  If you provide the quote from the other mortgage company they will beat it.  I'm assuming you are looking at a MSHDA loan, they definitely can do those.  Drop my name if you contact him.  

Chris Knocke 2485357073.  cknoche@johnadamsmortgage com

Some really good nuggets throughout this report.  Sorry if already posted.  

Emerging Trends Report

I understand the long term plan on 1031 exchanges are essentially defer, defer, defer, die.  But what happens if you defer, defer, hiccup.  Let's say you're on the 3rd or 4th exchange and for one reason or another the property you have lined up doesn't close therefor leaving you with 3 or 4 capital gains to pay the IRS.  Does this scenario happen frequently?  Are there other creative ways to safeguard this wealth strategy?  Trying to weigh the pro's and con's before I put my strategy in play here.  Thanks in advance.  

 The cash out refi angle is interesting.  On the surface the idea of over-leveraging scares me a bit but then again holding long term should minimize that fear somewhat.  Thanks for the idea.  

True and I've thought about that. I definitely have a plan in the future to invest with my wife but for now I have the equity in the LLC rental which I'm looking to leverage into more investments. Trying to figure out how to keep that rolling forward despite our differences. The benefit is, as a Realtor, that I can uncover deals and keep my career as a Realtor. What I do with the LLC fits into my day to day routine and I don't have to do any of the work/oversight.

Thank you for the reply.  

You have $0.00 estimated for repairs but have an AVR of $21,000 more than purchase price. Is this property for sale on the MLS? How many days on market? If it's been for sale for any amount of time and still available I would assume you'll need to make some repairs to get to your AVR. If it truly doesn't need any repairs why hasn't it sold yet at that price? Just want to make sure it's not a too good to be true type of purchase. Good luck!

I have an LLC that my business partner and I own 50/50. The partnership is absolutely great as we compliment each other. I'm a Realtor, find deals, evaluate, buy, sell, find tenants, pay bills. He manages the projects and does quite a bit of the rehabs himself. We've bought 11 properties in the LLC but currently only have 1 property which is tenant occupied and it's free & clear. The partnership has worked very well in the past and I definitely want it to continue....but....

We are at different points in our life. I'm 36 and he's approaching 60. I want to "BRRRR" building my portfolio via cash flow and want to strategically grow without paying capital gains. He wants the big paychecks from flipping.

Has anyone experienced similar crossroads?  Is there a creative solution out there so we can both achieve our goals while maintaining the partnership?  Should I consider paying him as a contractor based on the success of the project (he gets the big paycheck) while I get the cashflow?   

Any thoughts would be greatly appreciated.  

@Kevin McElmurry do you own the house in Macomb?  If not, have you considered house hacking?  I'd consider buying a duplex, live in 1 unit and rent out the other.  Near A2 there should be plenty of good investment opportunities.  The commute savings alone would be nice!  That's a LOT of drive time each day.  

@Michael Wentzel thank you for the reply. Really liked the line of thinking here so I number crunched and used real home purchase examples (with real taxes, insurance, etc) and no doubt this has some attraction to me. I assume you would employ the "BRRRR Strategy" with these 3 new properties to keep the momentum going? Thanks again for the reply.

Hello BP! Although I've bought 11 investment properties (9 Flips, 2 buy rehab & holds) over the last 4 years I still consider myself somewhat new to this investment game and I'm at a crossroads as to what my next steps are. Essentially we (my LLC which I'm 50/50 with a business partner) currently have 1 property in our portfolio. It's being rented out and we have a great tenant in place who wants to be in the house long term. The Property is located in Clinton Twp, MI, is worth approximately $150,000 and is getting $1,400 a month in rent and is free & clear. I don't have access to anymore cash and would look to leverage this property in some way.

I'm curious to hear what you fine investors of BP would do in this scenario?  How would you finance and what would you invest in?  And to be clear, I really do want to know what YOU would do.  I totally understand that what I ultimately end up doing really depends on my personal goals.  Looking forward to reading the responses...