All Forum Posts by: Mike Hoherchak

I'm looking at purchasing a small multifamily (2plex, 3plex or 4plex) as an owner occupied using a VA loan. I know every lender is different but I was curious to know what are the requirements in order to qualify. I understand one of them is 2 years of income. I just started a new job with a rather long unemployment gap. Would the rent roll help with overcoming that hurdle? Or does it stop me in my tracks? Any help is appreciated.

Thanks in advance!

So I came across this article today. Starting May 16th, unaccredited investors can now take part in equity crowdfunding. 

Here's the full article from Entrepreneur.com: https://www.entrepreneur.com/article/275215

Of course, I could see potential downside for uneducated investors but I can also see the tremendous upside for new businesses looking for funding in order to get started. This particularly excites me about funding a real estate investing business. 

Here it is on the SEC.gov website: https://www.sec.gov/oiea/investor-alerts-bulletins...

What are your thoughts on this? What strategies come to mind to make this work for real estate investing?

Thank you gentlemen for your input. I've never thought about it being tax evasion! 

I've personally met the guy in the video. He's one of the big players in the Philadelphia market and has been wholesaling this way for years. Though his explanation makes sense to me about being a lien holder..similar to a gas or electric company putting a lien on a house, it's not considered a transfer taxable event for them. I guess if you package your wholesaling business as more of a deal service provider vs. a whole saler maybe it makes more sense.

But then again, being that I'm a rookie here, I wouldn't know for sure. I guess that's why I was trying to see how viable of an option this would be as I'd like to do the right thing 

So I found a way to avoid the double transfer tax by utilizing 1. an option contract 2. a notice of option contract and 3. an option termination agreement instead of a purchase agreement with the seller. You act as more of a lien holder collecting the "lien release fee" vs. being considered both a buyer and seller at the same time triggering two taxable transactions.

I was curious to know the thoughts of seasoned wholesalers on this or if there was a better way. 

Thanks in advance for anyone's input!

So it seems you can avoid the double transfer tax by utilizing 1. an option contract 2. a notice of option contract and 3.  an option termination agreement instead of a purchase agreement with the seller.  You act as more of a lien holder collecting the "lien release fee" vs. being considered both a buyer and seller at the same time triggering two taxable transactions.

I'm not sure if video links will post along with my comment but I did attach it below. If it doesn't show up, do a youtube search for "Jim Zaspel's advice how to avoid double transfer taxes on wholesale deals in pennsylvania"

https://www.youtube.com/watch?v=Gq4b0-n5J7c

Thank you gentlemen! I appreciate the feedback!

I'm a new investor looking for my first investment property. What I'm looking to do is purchase a 3-plex or 4-plex to live in one unit and rent out the others. Aside from seller financing, I'm looking into conventional financing.

I'm ex-military and qualify for a VA loan but when talking to a mortgage broker, he was trying to sell me on using a FHA loan instead. I'm curious to know from people who have had experience dealing with both loans and what may be the better option for an owner-occupied loan structure. If location matters due to local laws, I'm looking to live in Pennsylvania or Florida. Thanks in advance for anyone's help and insight!