All Forum Posts by: Pierre E.

*OPM to renovate a seller finance deal?*

Hey BP Family, would love your input.

With seller finance, do you need to come out of pocket for renovations? Or do you just avoid value add deals and go for minimal rehab?

If you buy on seller/owner finance terms, (or subt to?) because the seller isnt an actual bank, if you renovate from a value add standpoint you dont typically refinance do you? If you did, its not likely the seller would give you money back with which to pay off a private money lender… and in addition most seller finance deals (not as much with sub to) the purchase is more often over market and not a discounted, value add type of property right? Is it because I am only thinking small residential property?

How do you scale properties you need to renovate? How do you use private money lenders in the deal?

I hope I am not just missing something obvious! Thanks in advance for your wisdom and your time

 I would love to pick your brain on more of how this has been working for you!

would love an update! and what about the STR rules in Annapolis? Does it need to be owner occupied (Annapolis City specifically, anne Arundel county is different)

Interesting! Love the input. I am really excited to employ this strategy to scale in the next year or two. 

Follow up question, What is the value of the relinquished property based on? List price? Appraisal value? Sale price?

Can I go under contract for the replacement property before the relinquished property is sold? 

how often are people doing this? are people getting reasonable equity after building for something like this? I am trying to find out typical LTV for a SFH property that you build with a construction loan but its not been easy trying to find.

any updates? looking to understand more about this process too. ROI on new build on land for a SFH that could be an STR

how did it go?

Got it. Thinking of a little patch of land that I do not own but likely could purchase, and build on... but then if 1031 a currently owned property, purchase that land with intent to build with some type of build that can be done in less than 180 days,  the land does not exceed the value of the relinquished property...   thats the challenge.  thanks again!  

I know from searches that you can take a property, and 1031X it and purchase land for investment purposes.

What if I want to take a SFH property that I have, lets say its worth 500k, and 1031 exchange it to purchase land worth 100k and build immediately for something that will cost 550k to build ... is that do able in any possible way?

I am thinking its not, and also thinking a reverse 1031 might not work either since building on it would mean you already own it... But it would be a lot easier to

in real estate I would have taken advantage of the STR loophole, and also gotten more mentorship for someone that understood the market I was in instead of using general advice. woulda been less headache more revenue.