All Forum Posts by: Nicholas Junker

Aaron,

Just checking in with you, are you still in need of some local knowledge with regards to your clients inheritance? I am a local real estate agent and investor here in Bozeman. Would be happy to chat with you.

Talk to you soon.

Regen, talk with Randy over at Yellowstone Bank. Though I havent been in touch with them about HELOC's, they do a lot of in house portfolio lending and he is super knowledgable so he might be able to help. Also, Caroline at Prime Mortgage is pretty creative an also super knowledgable. Feel free to let them know I sent you along. Good Luck!

Trying to find some information from this great community of Bigger Pockets before I speak to my expensive lawyer.

I currently own a distressed property owner financed through a trust indenture (similar to a contract for deed except that the title is transferrable before the loan is paid off). Terms are written with a balloon payment in one year. There is a title company involved in which I make monthly payments through. 

Im thinking about wholesaling the property. I have an interested buyer. Wondering if I am able to wrap the owner financed trust indenture and finance the property without doing anything illegal? Will the title company allow for another loan to be written on the same property? Is this a deal I would have to do cash only under the table? 

Please let me know if any of this is confusing or I need to explain the current financials more.

Thank you!

Yea I understand the question is tough and so open ended

Really I am just looking for some examples of other partnerships and how they have structured themselves

Your questions are great and I think if we can answer all of those that will help define our values.

Thanks!

General partnership structuring question

My partner and I  are investing in a 5plex 

We are unsure as to how to properly compensate each other

Wondering about general ideas for how to evenly split up the cashflow and ownership and how partnerships have previously kept accurate account of each partners contributions

I understand that every partnership structure is unique and there are endless ways to divide up the ownership and compensation, I just want to hear some stories and current examples of how successful partnerships are being structured

Thanks!

 Jovan checkout the book "The 16% Solution"

It is a GREAT introduction to tax liens and gives you some steps to move forward with. Robert Kiyosaki actually references the book at the end of RichDad PoorDad.

Hope it helps!

Cheers

 Josiah! Welcome to Bozeman!

There are definitely active members here from Bozeman. We have two local investor club Meetup's in town. If you search Bozeman Investor Club on meetup.com you will find one and than there is a cashflow game night meetup as well. Join us!

Let me know if you ever want to meet for coffee sometime.

Cheers

SO, Im looking into purchasing a large 6plex through owner financing. Based on the sellers needs, I want to offer him a balloon payment in 5 years. My question is, how do I minimize the risk of not refinancing in 5 years? Is there any sound way of knowing I can refinance in 5 years and pay off the owner guaranteed? Is it just a matter of making sure I am not buying at a premium (high in the market)? Everyone says to not buy on appreciation, WELL I want this deal because it cashflows $200 a month at undervalued rents as is and with some rehab I can increase those rents and thus the cashflow, HOWEVER I do not want to have to give this property back in 5 ears if I can't refinance. 

What do I do to make sure I can refinance? Make sure I have at most a 75% LTV in 5 years? Well how do I know the market is going to go up? Do I just assume that the market will always appreciate (that sounds ignorant)?Whats the answer here? Does anyone have any experiences with this kind of scenario they can share or any suggestions on how to further analyze this property?

Thanks for the responses.

Again, the comps are hard to come by. Not many multifamily units have been selling I believe because there is such a shortage of housing and rents are at a historical high (there is a large and growing university in town).

I understand that comps are the main determination. Its just simply hard to justify these numbers when the inventory on comps are low. 

Thanks again for the inputs! 

Mike so the properties here are super unique. Any comps for these unique single family properties converted into duplex and 6 plex's are far and few between. Ive called appraisers and they tell me exactly this "they can do an appraisal for $900 but the comps are going to be very hard to find its such a unique property."

Thats why I've been really curious about this equation and have used it to back up my low offer price but the sellers say "well I'll just put it on the market and sell it in a week."

I feel the equation accurately shows that, based on the current operating costs and operating income of the property and the current market cap rate, without raising rents, this is what the property is worth. Is this not accurate? Can I explain this better to the sellers?