All Forum Posts by: Page Huyette

As a follow-up to my previous post regarding the length of time required to hold a seller-finance before refinancing, I wanted to clarify. In my case, the bank would refinance immediately at a specified LTV of either the purchase price or appraised value, whichever was less.

Glad I found this thread, even though it's old.  I have a situation that is very similar, except its for a mixed use commercial building.  Did you make more progress?

I'm running numbers for a master lease of a mixed use building:  two commercial spaces and one apartment upstairs (Units A, B & C is the apartment).

Units A & C are leased. Unit B is vacant and I'd like to sublease it. It has 4 offices and a common space, shared kitchen and two bathrooms. When determining NNN for the eventual 4 tenants, should I divide the common SF into fourths and add it to their total office SF? This common space is exclusive to this unit only.

The goal is to account for the total building SF, I assume.  What happens, however, is it jacks up the rent for each space.

Also, I've been using a spreadsheet from BP in my analysis, and am getting stuck with the column entitled CAM PSF.  What does this mean?  

Loopnet can give you a general overview.  Also, ask a commercial broker to share some leased listings from the past 6 months to a year to get an even better feel of what type of property rents for what.  

Ahhh, another great point.  Thanks @Joel Owens

Thanks for the further clarification about how to set this up should it become available.  I appreciate your insight.  

I'm thinking this could fly if there is one property held by the LLC, otherwise it wouldn't be wise.

We have identified a property we'd like to purchase, and could sell another investment and do a 1031 exchange, but an interesting option has presented itself.  

Another investor friend recently purchased a commercial warehouse by assuming the debt the current LLC owners have on the property, with no cash outlay. She intends to have her name added to the ownership LLC, and theirs removed from said LLC, with one of the original owners remaining as a member.

I'm wondering how this can be accomplished, since the property was likely purchased by the LLC and not individuals. Is it worth considering this option? Our property sellers want to sell fast, so we'd prefer to move forward without waiting for 1031 exchange to happen and put the required 25% down.

They are open to creative solutions, but something about this doesn't seem right.  Opinions?

Thank you Dave, very helpful.  If I understand you correctly, you have indicated we cannot sell the rental until the house is complete, but we need the proceeds from that sale to purchase the land and begin construction.

It was my understanding that a 1031 exchange could be done for raw land with a construction loan as long as construction started within 6 months. Is that incorrect?

Another option we have is to do a seller carry of the land, sell the rental and then begin construction but I'm unsure how to hold title on the land. We could use our LLC or have just one of us hold title, then have the other purchase, but now I feel I'm complicating things more than necessary.

I ended up doing a seller financed deal last year, and used a local bank to handle it.  They were not great, disorganized and would not collect insurance payments as part of the deal.  I had an attorney draw up the note, and went through Title as though it was a standard transaction.

Ended up paying it off early, and the sellers were very happy.  Am now about to use them as a reference for another seller financed deal to prove we are good at it.

There's been some discussion on this forum about how long something like this needs to be help before refinancing.  I spoke with my local bank contact and was told they have no length requirements.  So for the next deal I'm trying to close using seller financing so I can put less than 20% down, and then will turn around and refinance within a couple of months.