All Forum Posts by: Account Closed

To sum up:

Fix n Flip = 1031

Buy and Hold = Seller financing

Can a seller finance if they have an existing mortgage?

I have a lead that is considering selling. It is an SFH that he has not lived in for over 5 years. The seller wants to avoid capital gains taxes. I will give him a 1031 Exchange as an option. Anything else?

Does anyone have a recommendation for stagers in the Denver market?

We used Budget Garage on one of our projects.  They can knock it out really quick and they seem to do good work.

Thanks @Jessica Zolotorofe.  The investors will be friends and family and I give them a note and mortgage.  Their investment is tied to a specific property/project.

I will be in touch.

I am a fix n fliper looking for a securities lawyer.  I am guessing I will need one if I am having private people lend on my projects?  

My understanding is that when raising money for a large multi-family project a syndication is what it is called.  Is the same thing applicable in raising funds for fix n flips?

I think what you are looking for is skip tracing.  

I will be using friends and family as private lenders to fund the down payments for my rehabs. In this partitular situation I have a friend who wants to lend with his New Direction IRA as a custodian.

NDIRA has fees for each transaction as I am assuming most IRA custodians do. Two things I am trying to accomplish:

1. trying to avoid/reduce the fees

2. keep the process as simple as possible for my lenders as they are not sophisticated investors

I was thinking the best way to do this is create an LLC (syndicate LLC) that my lenders invest in and keep their money there. The syndicate LLC lends to my LLC that will use the money for down payments.

Questions:

• Am I headed in the right direction with my structure thoughts?
• Do I create an LLC for each investor?
• Who owns the syndicate LLC?
• How do taxes work for that LLC?
• Do securities laws pertain to family and friends?

I am sure there are many other things I have not thought of.

Thank you in advance for your advice.

Nir

@Percy N. When you say "appreciation potential", do you take that into accounts on your flips or were you referring to buy and hold?

I guess I should have clarified that I am talking about fix and flips.

@Brie Schmidt So you include your Rehab cost into your 70%? I always thought it was ARV*70%-Rehab=PP.

I can't imagine getting a house for 70% in the hot markets I am in such as Denver.  I shoot for 80% but I think that is offset by the fact that I am able to get really cheap financing.  

Am I way off?