All Forum Posts by: Matt Tobler

We ended up offering him 2 options:

Option 1 - We can write you a check for $50,000 and close on June 15th.

Option 2 - We can purchase the house from you for $65,000 on a 2-year contract for deed. We will give you a $5,000 downpayment and pay you 5% interest.

He countered at 55k close date of July 15th, we are having him sign the contract today to lock it down. 😊

I did not see that my brother posted these details already whoops

Also I’m still looking for money but my parents do at least seem much more interested now. So I’m hoping they float me the doe otherwise I might try and push the closing out until I get my fix and flip sold.

Again thanks for all the feedback! Update: The meet up went great! I emailed him yesterday after the walk through with a few options. I gave him a cash offer for 50k or seller finance it for 65k with 5k down at 5%. 2yr. The homeowner earlier tonight countered back asking if I would consider 55k cash (exactly what I originally wanted to pay for it!) It honestly couldn’t of gone better! It needs a little more work than I original thought but I think with 15-20k into it I should be able to get it appraised at least at 150-170k. My plan will be to turn it into a 4 bedroom and then finance it for as much as I have put into it and keep it as my first rental property. My hope is to be able to get a pretty good helco out of it for future deals.

Unfortunately, I’m a carpenter and my wages aren’t very much. I have good credit but not much history yet. I’ve been doing very well with my side hustle fixing and flipping houses but I’ve only been doing it for about a year now and have only sold 1 so far and I don’t close on my next one until July 15. So a personal loan for that much is out of the question. The owner is in town and I’m meeting him today at 4 at the house. I’ll let you all know how it goes! Thanks for all the feed back. I really appreciate it. If anyone is interested in possibly partnering up on this deal or future flips let me know. Here is my fix and flip history so far 16660 flounder ave Lakeville mn 55044 purchase price -135k Rehab -40k Sold -239k 1616 Ashbury Pl Eagan mn 55122 Purchase price-149k Rehab- 46k Not finished yet but already set to Close on July 15th for 320k 9503 123rd ave Hastings mn 55033 Purchase price 110k Rehab 55k ( I sub contracted this one out) List price 250k Should be completed in the next month

Thanks for the reply. that's a great idea. I know I'm not gonna let this one slip by!! My other option was to use my hard money lender to buy the property and then try to finance it asap. I just wasn't sure if there was a better/cheaper way to go about it other than family. I  might just take the hit from my hard money lender and finance it in July when I close on one of my fix and flips.  If I did choose to do this would I be hit with 2 closing costs? one from the hard and one when i finance it through a bank?

So through connections, I found a homeowner who's mom recently passed away. The son lives out of state and wants to get rid of her property as fast as possible. He's willing to sell me the house for 55k cash. Its a great deal considering the house doesn't need much work at all and the comps around there are selling for 150k-170k. His mom was an extreme hoarder and he doesn't want to deal with having to clean it out and list it. He just wants it gone. I reached out to family members to try and get the cash to purchase it and told them id finance it as soon as possible but had no luck. My question is what is the best/cheapest way to go about getting the cash for this property? 

 id like to start my rental portfolio and feel this would be a great first property. rental rates for 3/1 in that area are going for 1400 and there is also room in the basement to add a additional bedroom which would juice up the rental rate to 1600-1800!

Hey Nicholas, I have another quick question. My brother and I are flipping houses using a private investor. He contacted me the other day asking what kind of tax stuff we will be filing for him or if we have to, he mentioned something about a K-1. Even though we will be filing for 2018 taxes he’d still like to know what he has to plan for. What is the best way to go about this and also answer his question. Thanks!! ☺️

My brother and I did all the work on our first flip, we ran into problems with the electrical work I did because it wasn’t done by a licensed electrician. The inspector said my work was done professionally so he signed off on everything but we could have really been screwed if he would have made us get it approved by a licensed electrician. We are full time carpenters/full time investors, with our main goal being to stop swinging hammers and start swinging pens. We feel it’s better to double down on one thing (finding properties) and let the pros do the rest.

Awesome! Thanks for your input!

Hey Nicholas, this is awesome! Taxes are the most confusing part of the whole thing haha. My brother and I just flipped our first house under our LLC. I read somewhere that you can avoid capital gains tax if you can prove that your intent was to keep the property as a long term investment. A week after we bought the place we had renters warehouse come give us a quote just for ***** and giggs. Would something like that help us since our intent was to rent but ended up selling the place? Also would that allow us to roll the money on a 1031 exchange? Thanks for your help bud!