All Forum Posts by: Mike Dorneman

@Brian Zaug Usually when a property is so “hot” the seller will send out a “best & last” request. So you’ll likely have 1 chance this week to send in your highest offer. You do have leverage since you’re cash. If you’re not dead set on a specific closing date, you can write in that the seller can select duration “allowing for title search”. That has helped me beat out some other investors in the past. Know your highest number that still makes this a great deal and stick to it. Best of luck!!

@Caleb Jordan Absolutly. I’ve bought properties with residential products and then refied as commercial and vice versa multiple times.

@Alessandro A. Yes, that can work. You will want to identify a commercial lender that will allow you to refi without “seasoning” the property “waiting” 12-24 months. I use a small local bank in my area and they do not require any seasoning so it works out great on quick cosmetic deals. Also if you can increase rent “execute all new leases” that would be great. The bank is going to loan based off the projected income so the higher the rent, the better the appraisal!

@Dave Foster Great info everyone, much appreciated!!!

@Josh Dillingham I had this happen before at 2 of our rentals. Both times they were air locked. Sounds like you tried to bless them, but maybe there is another release further down the pipe you haven’t released??

@Stanley Bronstein Agreed. Our CPA does them along with the attorney we use for everything. I’ll be meeting w them all next week. Thx again!

@Stanley Bronstein That’s great info, Stanley. Thank you!

I’m can’t get my CPA until Monday so I figured to check in with all of you! :) Wrapping up a buy and hold renovation and was approached to sell the property. I’m currently under contract on 2 other properties. The question: Am I able to use one of the other properties I’m already under contact on, to offset the sale of the first property and execute the 1031? I understand the timing to qualify for the 1031, I’m just unsure if I can use a property already under contact, or if I need to “identify” a new property after the sale of the initial property. Hope that makes sense!! Ty

@Michael White if forming an LLC, then you’ll need to draft (have an attorney do it) an operating agreeement. Who gets what weeks, who is responsible for what, how are expenses and rental revenue divided, and how an exit would look.

@Ryan Delauz File a notice to quit / begin eviction process first. Then contact city with those documents, as well as your lease that states this area is not for “living”. Explain that this is a heath issue and ask code enforcement for assistance. In my city, the zoning people would enter with me and if the tenants didn’t adhere, the sherif would be called to assist with removing them. So long as you show you have followed the appropriate steps / the law, you’ll be fine.