All Forum Posts by: Thomas J.

Okay well that's super confusing.  Just get a hard money lender that does 100 percent of the purchase.  Hard money lenders are just as good as cash in most instances, except you gotta pay for the money.  Your lender wouldn't do it because most of them won't allow a second lien.  The way around this is to get the 20k note secured with something else, or actually keep the seller on as a co-owner with a clear agreement of what his ownership interest is.

Do a lease with purchase option instead of seller financing and you won't pay the gains until the sale goes through.  The IRS cares not that you lent the buyer the sale price.  

Can anyone recommend a hard money lender or a lender that will do a long term loan on commercial properties with renovation funds on a refinance?

I have a commercial property with road frontage that's about 2,000 sq ft for food and beverage that needs about 100k worth of work and I have another small office that is paid off that needs about 20k to get finished. Ideally I would be able to refinance both properties into a long term loan.

Advice? Recommendations?

Thanks

If you're using real estate brokers my advice is to make them do their jobs and force him to come down 8,000 dollars.  ALSO..... the brokers are probably making 16,080 dollars in commissions between the two of them.  Because the seller is party to the transaction he has the legal right to get concessions from the brokers at closing.

If it's a private sale just go through your closing attorneys and try to convince him to come down on price.  It sounds like he's playing hard ball and hoping you'll put down another 8,000.  Just send a signed termination and a signed alteration and tell him to pick one.  Tell him this isn't a negotiation.

Can anyone recommend a hard money lender or a lender that will do a long term loan on commercial properties with renovation funds on a refinance?

I have a commercial property with road frontage that's about 2,000 sq ft for food and beverage that needs about 100k worth of work and I have another small office that is paid off that needs about 20k to get finished.  Ideally I would be able to refinance both properties into a long term loan.

Advice?  Recommendations?

Thanks

LLC's are pass through taxation. They're set up to separate liability from yourself, but the taxes flow through to you. Corporations with an S election are taxed the same. C-Corporations file a separate return. You can avoid a lot of capital gains with a 1031 exchange.

Find a hard money lender who allows a second lien.  If the seller would do the note unsecured or secured as a second lien on another property, you would have been able to close.   You could also keep him on the deed as a co-owner with an ownership stake in the house to be paid at closing after you flip it.  Also why are you buying houses to flip with no cash?  If you don't have 20 grand sitting in the bank you probably need to save before you start investing in distressed houses.

There's nothing really wrong with knob and tube wiring.  Folks who don't know about electricity tend to get scared.  It's better than lower gauge aluminum wiring.  Knob and tube was up to code at that time.   My argument when purchasing these properties is that..... well it's been there for a hundred years.  It's clearly fine.    One issue with knob and tube is that it's not properly insulated so the wire gives off more heat... because of that you cant put insulation around it so your tenants will have higher heat and air bills.