All Forum Posts by: Nathan McBride

I was wondering if folks had any recommendations for podcasts focused specifically on property management.

I've been listening to 300 to 3000, which has been great, but it is focused on agressively growing a PM business.  I'm looking for something that dives into the nuts and bolts of the day to day activities of a PM company, especially lessons learned and things to consider.

@James Rolf

You'd have to get advice from your own attorney, but I will say that when I looked into similar properties in the past, I had a title attorney tell me it would be 10 years before I could file to quiet the title.

That means 10 years before the property would have a clean title that banks would willingly lend against.

Yes, you can get title insurance for some of these adjudicated properties to protect against someone taking the property back (I forget the auction service that does this), but if you look at the policies as a percentage of the purchase price, they are exorbitant.

The adjudicated property situation in Louisiana is a mess and, in my opinion, will continue to be a hindrance to redevelopment in blighted areas until systemic change occurs.

@Basit Siddiqi, we'd be moving just because we like the house, and it would be an opportunity to offset our mortgage with the rental units.

It's just across town, and the move is not job related.

@Basit Siddiqi

Thanks for the input.  After discussing with a local CPA, it looks like I am getting overcomplicated in my attempt to be creative.

For the sake of simplicity, and assuming the numbers work, it may make the most sense to just sell my primary residence and purchase this one with a 30-yr note and just take the capital gains hit on the sale of our house (we've been in it for less than 2 years).

I saw a property come up for sale in an opportunity zone that I would consider living in.  

It has an apartment that is rented out in the back and an attic that is plumbed for an apartment addition, so there is an income producing aspect to it even if I purchased it as a primary residence.

My question is can I purchase the property with a partnership LLC (which already exists and owns property) and then rent the main house from the LLC for myself to live in?

To raise purchase funds, I'd like to either sell a property that is already owned by the LLC (1031 exchange) or stock to reinvest the capital gains to take advantage of the O Zone.

I am looking at a potential property that has an IRS lien associated with it.  I am not sure how those work and wanted to see what the potential options are.

The owner had offered the property for sale with a quitclaim deed (red flag for me) at a hugely discounted price, but obviously the IRS lien falls on me in this scenario.  They are also willing to settle the IRS lien out of sale proceeds at a higher price and transfer ownership via warranty deed.

My question on the IRS lien is whether or not there are opportunities to settle the lien for a lower amount.  I.e., could I buy the property at the lower sale price (assuming that the IRS lien is the only title issue, of course) and work with the IRS to settle it, pocketing the difference?

Possibly a dumb question, but I am definitely no tax or title attorney so figured I'd ask.  Of course, the safest option would be to negotiate a sale price that includes settlement of the lien (assuming the numbers pencil out on the investment side), but there is always money to be made in creatively solving problems.

The lien according to the seller is for somewhere in the $150k ballpark.

@Jeff Mason, I will check it out.

These are all excellent things to consider. Thanks guys!

@Tom S.

Normally, I underwrite everything assuming a 20-year note, but I'm coming up with something like 3.5% cash ROI on a 20-yr commercial note for this one - nowhere near what I need to get.

This one is tough because of the empty lot being used for parking (and therefore not bringing in rent, yet driving up the sale price due to land value).  

That extra lot, which allows access to two streets, should help the future value of the property, especially if I can work out a deal on one of the neighboring properties in the near future and really start playing the redevelopment game.

Plus there's the proximity to the university; if this was in some random suburb, I would not even consider it.

If you are trying to do a large batch of names/properties, this is not the best because it is very manual (individual entry/using common sense to screen out bad info), but I have had great success locating phone numbers using fastpeoplesearch.com.

It is free, and I find that a lot of times I get cellphone numbers out of it, not just landlines that are disconnected.

I use it to find owners of multifamily properties, so I'm just looking up like 10-20 at a time, max.