All Forum Posts by: Matthew Lindsey

Thanks, I know when I initially looked at buying the property I actually had a well known big bank that was going to do the loan what I considered conventional. The only reason I didn't follow all the way through with it was because it would have taken to long and I was on a deadline so I had to stop it and just pay cash at the end. However it would have been in my personal name. Even though it's 4 units and under does this still fall under a commercial loan since it's in my LLC?

What type of loan would this be considered? This isn’t considered a cash out refinance is it. Thanks 

Thanks.  That might be where a issue arises. I might have to wait a little longer. This property was purchased in Early July 2021.

Hi,

I have been thinking about trying to pull cash out a property of mine. The property is two duplexes on one piece of land so technically it's 4 units. The property is paid off with no mortgage. I'd rather not do a HELOC. I want to use the cash for other investment properties down payments. What are my options to pull the cash out of paid off property. The property is owned by my LLC, is there any way to pull out cash and have the loan under my LLC so it doesn't affect my personal DTI?

@Steven Foster Wilson

Thanks for your reply. Its a difficult situation because I'm having to deal through the daughter of the owners since the owners are in their 80's and one of them is in a nursing home. On the first call the daughter mentioned they were interested in selling because of their age. The ones they are offering to sell are the least desirable out of all of them. All the others are all brick buildings and these are off the road, hard to see, lower rents and have vinyl siding. However, the way I have figured it they should still have a CoC ROI of 17-21% at the lower rents. I am very new to the game but from what I have seen that is decent numbers. I don't think they have any attachment to these as they also purchased these but the owners built most of the others. Knowing when to walk away is the issue im having now. When they went up on price I wanted to walk away but I cant help to think I would be leaving money on the table and a chance to build on my portfolio.

@Joseph Hammel

Thanks for the reply. I do not believe they would be doing a 1031. The owners are in their 80's and have owned them for over 20 years. I tried the seller financing deal and at first they didnt shoot it down, they wanted to talk with their financial advisor/tax consultant. After their meeting is when they came back and told me they were no longer wanting to sell. It is a difficult situation on my end. I sent the letters to the owners and their daughter is the one that called me back on their behalf stating they would originally sell. So I have to go through their daughter which then has to relay everything to her mother(owner). I might bring up the 2017 bill next time I speak with them. Thanks

Hi,

So recently I had a seller interested in selling me their multifamily units. Total of 9 duplexes, 3 duplexes on 3 parcels of land. The property was not on the market, I contacted to them to see if they would be interested in selling some of the duplexes. They called me about 2 weeks after sending them the letter and gave me a price for all of them together. Anyways, I was trying to see if they had any wiggle room in price and in the mean time they talked with their tax accountant/financial advisor and informed me that they no longer were interested in selling them. Not knowing what to say since I was caught off guard by that after all the work and research I had put into trying to make the deal happened, I thanked them for their time and told them to keep my number if they changed their mind. So a week went by and I reached back out to just see if I were able to give them their asking price would they reconsider selling any or all of the units. They replied and told me they would sell the least desirable of the 3 duplexes but this time the price they gave me was more than the original asking price. If I was to buy these I would also want another 3 duplexes they own beside these.

My question is do yall have any tricks to give the seller a little push to sell? Like in my case I might would buy the ones they offered me last but I really want the other 3 duplexes right beside these as well. The 3 they offered me only have an easement to them and the easement is the property line of the 3 I want. Have you ever sent anyone a contract with a price ready for them to sign if they choose to. Should I send them a contract that has both properties for a certain price to show im serious, should I just stick to verbal, or should I just walk away. Any help would be appreciated. 

@Alan Ouellette

Thanks. Well unfortunately the whole deal fell apart today. They talked with their financial advisor today about maybe owner financing and somehow he supposedly convinced them not to sell anymore. Definitely a bummer! I wish I knew what he said to make them change their mind. The owners are in their late 80’s. He probably told them they could get more for them, who knows. Thanks everyone.

@Eric Vermilion

Thanks. It’s actually a property that I got a call back on from sending a letter to, to see if they would be interested in selling. So there is no agent. I’m not under contract on it yet because I’m not sure yet if I should be. I really wasn’t to prepared for them to offer all of their units to me, I was just hoping to get one of the parcels(3 duplexes). Without being under contract I’m sure the management company would not release any information to me. 

I guess I’m wondering if it’s worth putting under contract to actually really dig into all the numbers by contacting the management company, getting all the history, seeing what can be saved, etc..