All Forum Posts by: Nate S.

Thanks for all of the great insight everyone.

@Dave Foster, farmland is an interesting take. Unfortunately, I have read quite a bit about US farmland being in a bubble. Although, the inflationary protection it adds cuts a bit from the risk of purchasing it too high. But, you know what they say, make your money when you buy.

I'd love to get productive farmland overseas, but, again I cannot do that with a 1031.

I'll definitely do some Googling on DST's and educate myself on them and see what is out there via that vehicle.

@Joel Owens, I may just have to educate myself more on the non-residential asset classes. I just feel safer in residential given the potential (large) downturn I see coming.

Given the general lower returns available right now, part of me wonders if it would not make more sense to just sell and pay tax and re-invest the funds at higher rates of returns elsewhere (private placements, overseas properties/land). However, I am not quite sure how to figure out if that would even make sense.

I guess it basically comes down to paying no tax and only earning, say 6%, versus paying tax and earning 12%. Have to figure out how to do that math.

Thanks Robert. Do the people you listed have access to 1031 qualified properties/deals or are they just 1031 intermediaries?

Hi all.

I am thinking of selling a few properties in 2016. I would prefer to do a 1031 exchange on them to avoid paying the tax, but most markets in the US seem overbought right now (both SFH and multi-family). I am a bit hesitant to exchange into anything in retail, office or industrial as I believe the U.S. economy is about to experience a downturn and I don't have a lot of experience in those specific asset types. I would love to buy something oversees, but you cannot do a 1031 into a foreign property AFAIK.

I've done quite a bit of private lending and private placements, so I have poked around online a little bit to find qualified Tenant in Common (TIC) 1031 deals. However, most of what I see online only yields 5-6%, which is awful.

Does anyone else know of a good source to find larger 1031 qualified TIC properties or have other ideas as to what I could exchange into at this point in time that would make sense?

I use and like:

Zillow
Rental Property Investment Calculator

Yeah, I think 6 months is pretty hefty, but the banks were burned pretty good by "investor" flippers previously, so now they basically seem be taking the stance that we don't want your business Mr. Investor unless you are experienced, have great credit and have boatloads of cash.

I understand why they are doing it. They are trying to mitigate their risk as much as possible. But, that does not mean it does not suck for us investors.

Great information everyone. Thanks so much for contributing.

I have been calling local banks and have heard no from all but one of them, but I still have several more on the list. Once I find a good one, I will work on establishing a banking relationship with them, which should help facilitate future loans.

I am going to put the commercial side in the back of my brain too in case I don't have good luck with conventional residential lenders or terms change again for the worse. I will definitely need it for properties 11+ anyway.

Cheryl. What happens after 5 years with the commercial loans? Do you have to re-fi or does the lender just adjust the rate based on some index and give you another 5 years?

Thanks Darryl and David.

I actually called Citi Mortgage this morning too and was told that they will only do #5 - #10 if it is a primary residence, not an investment property. Of course, I had to prod to even get that information, so it could have just been the loan officer I spoke to. Did you get a direct number for Tom? He sounds more knowledgeable.

I will also check out the local U.S. Bank branch to see what they say.

Thanks all.

I was hoping to purchase a few more properties, hopefully up to 10, using conventional Fannie/Freddie financing, before I had to go the commercial approach. But, if the environment is pushing me that way, then I am definitely open to exploring it.

Hi all.

I am looking for lenders that will finance properties 5+ that work in Virginia. I am having a pretty hard time finding any banks that will finance property #5, as we already have 4 financed properties.

Does anyone know of any investor-friendly lenders that will work with me in Virginia? Good credit score, reserves, etc... so none of that stuff will be an issue.

Thanks!