All Forum Posts by: Reese Thompson

Since you have a lot of questions and a fairly unique situation, have you checked out some of the real estate books similar to what you and your partners are trying to achieve?  They might not answer your questions very well, but they definitely would give you an idea of where to look for answers.

I would also mention that talking to both a CPA and an attorney would allow you to make sure you're picking a tax-advantaged strategy as well as protecting your assets.

Just keep looking, there will be more flowing through all the time.  Eventually one may pop up that is a good deal that you hadn't thought to consider.

I've found in most of my conversations that unless the seller explicitly tells them that they're willing to carry, it's difficult to find out.  The agents I've spoken with tend to either not understand it or they're just unwilling to ask the seller.  It's unfortunate. 

However, maybe 10% of the ones you ask would know/understand and maybe 10% of those would be willing and able to get you a seller financed deal.  So it may take you 100 deals to look through to find seller financing.  Maybe it's less, maybe it's more. 

I would think (theorizing here a bit) that if you're able to find a deal you'd really like to have and talk to the seller and find out their equity position, you might be able to talk them into it because of the tax benefits and the ability for them to get more money than being bought outright.  Maybe they've held the property long enough that it's paid off and they're just wanting out, but don't want to give up the monthly income or take the tax hit on a fully depreciated property.  Could be a good opportunity then.

@Nakisha Henderson

The biggest help I've found is to listen to the podcasts everywhere you go.  And once you've listened to them all, listen again because you'll find things you didn't catch the first time.

@John Nicholas

Just curious what you're planning to do with the HELOC? Is it to have the availability of cash for something that comes up or for something you already have lined up? I'm not saying HELOC is a bad thing because I use one from my own home myself, but if you're wanting to use the money right away instead of just having the availability, you could probably get better terms on a different type of financing, especially since you may have trouble getting a HELOC on your complex. I haven't gotten a HELOC on an investment property, so I can't speak to that. I definitely would be interested in it, though.

Welcome! 

Are you planning to live in the multi-family you buy?

Welcome!

I've used both of those that Joe recommended and they were good. I also recently used Reliable Title who was good, too. 

My understanding of the seasoning is that it's from when a value last hit the books.  So if you bought it for 30k, they would think it's worth 30k for their seasoning time (6-12 months that I've been told depending on the bank) and you wouldn't get them to look at it again for a different loan until that time is up.  However, and I'm not sure on this part, I think you might be able to get an appraisal after rennovation showing you've made improvements that have increased the value that the bank is then able to override their seasoning time.

For instance, I recently took out a HELOC on my personal property, but I hadn't done any improvements. They wanted a minimum of 1 year since I purchased the property (it was like 14 months at the time), and they sent their appraiser out to look at the place. They allowed the HELOC to go up to 100% LTV.