All Forum Posts by: Ramesh Ramdatt

Hello everyone, I joined bigger pockets a while ago and I need some help on how to finance a deal I found. It is a mixed use building in queens New York. It is being sold for 550K but a identical property sold a block away for 775K. The reason this property is being sold at such a discount is because the storefront on the first floor is only paying 1500 a month in rent, where others are paying 3500 to 4000. Also the second floor has two units that rent for 1100 each, those could easily rent for 1500 each. Taxes is 15000 annually. The seller wants to sell with all current tenants at current rents. The two residential units have no lease and the storefront has a 16 month lease. I think I can get the storefront to sign a new leases because I will offer a discount. Rather than raising rent to market (4000) I would offer 3000 per month for 5 years with a 3% annual increase if he is willing to sigh a new lease. I found a bank that will finance the deal but they need 30% down, I could do a FHA loan but the units are not going to be vacant so that’s why I can’t use that option. My issue is I don’t have the 30% to put down on the property which is roughly 165K. I’m trying to get private money from family and friends but it’s a lot to come up with. While thinking about this problem I realized that I have a whole community available to give me advice in bigger pockets so I’m turning to everyone of you for help. Can anyone tell me what options I have to finance this deal? Thank you for all input

Hello everyone, I joined BiggerPockets a year ago and I have learned so much by reading the blogs and listening to the podcast. I bought my first house in July of 2015 (505k) under an FHA 3.5% down in queens NY. Because I got a good deal on the house I am able to Refi this year and drop the PMI because the house is now appraised at 645k. I am expecting closing any day now. And the rent from the house will cover my mortgage while I live for free in one unit, all I have to do is pay for he bills which is not much compared to renting in NYC. After the Refi I want to purchase an investment property, my goal for 2017 is to buy one investment property just one. With that goal in mind I started looking around early January and I think I found one but I need some help. I can get to purchase a piece of land for 175K which is zoned for a single family house. I found a contractor who is willing to build the house at cost (150K) but wants to split he profit on the sale of the house. So 175K for purchase plus another 175K to build plus holding costs (12 months to be safe) and we can resell according to comps at 450K-500K, which will give us a profit of 100K-150K. (Maybe less for things we missed being that this is our first project) The problem is that neither of us have much funds, and the one hard money lender that we found that is willing to work with first time investors will only fund half of the project. Which will only cover the purchase of the land. I was thinking that I may be able to purchase the land through traditional financing and borrow the construction funds. I don't have friends or family members with that kind of money available or I would have just asked them. Anyone have any ideas that may help? How can I fund this project?

Hello everyone, I am looking for help on a question I have. I don't have cash to invest in real estate, but that won't stop me, I plan on finding private money and I already have verbal commitment after only a few days of searching. I know that I have to get final agreement in writing. But I was wondering when I get the private money how do we separate the taxes on any gains we get? So for example my private lender or lenders agree to lend me the money and split any profits 50/50. So to keep things simple let's say they lend me 100k (50k for purchase and 50k for rehab) and the property was sold for 200k so I give them 150k ( their 100k repayment and 50k profit) and I keep 50k. I was thinking of opening an LLC and paying them with a 1099 so that the IRS could see that the only gains I experienced is 50k and not 100k. Can anyone give me some feedback on what the think about this idea, and if there is a better way to approach this problem.

thank you for the links I will do my homework 

Does anyone invest in queens New York? If so can you share your story how you were able to invest there, I want to invest there but the prices are way up there. I am trying to use some creative financing but I need some advice, I want 2016 to be a big year for me.

Hello everyone beside the property I bought to use as my primary residence I have never done any real estate investing. I don't have much money and my credit is tied up in my current home, so I was supper excited when I learned about "subject to" deals because I always wanted to invest in real estate and this may be my way to get into the business. I Listened to both podcast #2 and #70 as well as reading forum posts on "subject to" deals. But I still haven't seen an example where the investor sells the property to a retail buyer, only lease to buy. My questions is, can buyers get traditional bank loans to buy these properties from the investors. I have an opportunity to buy a property "subject to" and rehab it ( the sellers can't afford the rehab themselves and agreed to a short sale with the lender). If I get the property and do the rehab I could net close to 50k if I resell to a retail buyer, but I don't know if buyers can get traditional financing. Also can anyone tell me what closing looks like when reselling the property. I already contacted a real estate lawyer about the legality of the deal and he said everything is good.

thank you everyone for you input, and thank you bigger pocket for giving me this forum to get the advice and encouragement I need. I will consider my options carefully 

to buy another home that I would want to live in would cost around 450k

I just purchased my first home this past July. It's a 2 unit house that I'm currently using as my primary residence, and renting the second unit. I had to take a FHA 3.5% down loan so my mortgage is high. I created a separate bank account for the house expenses and incoming rent. I charge myself the rent I would have to pay if I rented the same apartment elsewhere, by depositing that money into the "house" account. With the rent from my tenants and the rent I charge myself I have a positive cash flow of $200 into the "house" account. Now I notice that other identical houses are being sold for $100k more than what I bought my house for. My question is should I sell it or hold it for the cash flow, and if I do sell it what kind of taxes will I have to pay on the gains. When are my gains tax free, after 2 years or 5 years as my primary residence