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All Forum Posts by: Matt Hurley

Matt Hurley has started 6 posts and replied 183 times.

Post: Sell or rent, home is owned free and clear

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

I'd 1031 if I was in your position. That cash could be real useful right now for a larger investment and that's a ton of cap gains to move down the line :)

For me, the LLC a great way to go. That being said, I would not use an existing LLC but create a new one that only holds a future singular purchase on it. The equity stake would be in the one company, after which he would split the profits. If the partnership goes south you're not talking about a multitude of properties to deal with just the one.

I have a similar partnership myself, my equity was tied up in a rehab project but I didn’t want to lose forward momentum. I partnered with a gentleman who had a similar amount, I’m the hustle he’s providing funding. We’re searching for our first flip together, he’ll get his $ back plus half of the profit of the flip. No interest payments, no payback for him except after a deal is done. What can you do with this $50,000? Is this enough to buy a whole property in your area? Only use it for a down payment? Only use for rehab?

Post: Questions regarding Seller Financing

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

I'm not sure if I'm understanding your post, have you have already negotiated seller financing with the property owner? What are their terms? 

Seller financing is by definition where the property owner acts as the bank, which means that you shouldn't have to go to a physical bank at all to fund this transaction. The beauty of seller financing is that it's 100% negotiable between you and the owner. You can't put 20% down? Negotiate a slightly higher APR so you can put down 10%, or 5%, or none.

Post: First property, now how to re-fi out of private lending

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

First question, if it negative cash flows why are you buying it? Second, if your Airbnb income isn’t in play then you’ve got the wrong lender. I had a local lender here who used this as part of my income, AND used my income coming from the property. How many trad lenders have you talked to? 

Post: How to purchase land to build apartments and townhomes

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

I've never done a new build before, but from my discussions with people who have you need to be able to sell yourself to the bank big time. That means numbers numbers numbers. They can't give you a loan if you don't know how much you'll need, and how much the property will be worth after your done. Do you have a relationship with a builder already and whats your experience level? Do you have enough cash to pay contractors before getting draws on your loan? Enough for a down payment? 

Post: Seller Finance + House Hacking

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

Before you even start talking about financing the deal, you have to know where your numbers are going to be. That will determine your financing path in my mind. Some things to watch out for:

What's the ARV after you fix it up?

How much will it cost to finish the basement? In most states, a basement bedroom needs an egress window, which means cutting into your foundation. Not cheap. 

Will it cash flow with you living there, or just supplement your mortgage payment and expenses a bit?

Post: Low income property grants

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

Fund what in particular, rehab? The building of? Renting of? Tell us more about the project you have in mind, need more details. 

Post: Refinance an owner financed mortgage

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

As far as the mixed use conversion goes, that depends. You need to talk to your local zoning ordinance office. Mixed use, by definition means commercial + residential. If you’re on a block of mixed use properties, you may have to rezone to turn the floor into a sleeping apartment. Very dependent on your local municipality and what they have planned for your area. They may not allow this, might not. You should NOT do the conversion and then make the call to rezone, find out before hand what’s allowed and what’s not. Best of luck. 

Post: Contracts in Michigan

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

This Saturday (2-1-20) the Ann Arbor REIA is having a "Michigan Contracts 101" class. If you're in the area, you should check it out. Can find the event on meetup :)

Other than that, your best resource is a Real Estate Lawyer. They often have these types of contracts on tap you can buy for a flat fee and continue using it, or hire them to customize it each time if necessary. Best is if that lawyer is also an investor themselves. 

Post: Looking for find out what my options are

Matt HurleyPosted
  • Ypsilanti, MI
  • Posts 189
  • Votes 127

@Derek Dombeck

This is a good point, it does depend on your lender. I had a friend here locally who had the bank call the loan due when they tried to transfer it to his name. Very much depends on who holds the loan.