All Forum Posts by: Rich Solano

Just found this old discussion thread. Has anyone made a purchase on MKE yet since this chat or purchased through ACE?

Based on what you described the LLC is likely the tax-payer on title. *(If the LLC distributes K-1s to the managers, this confirms my assumption). In this scenario, each member doesn't actually own real estate, they own a business (that owns real estate).
If that is the case you have two options: 

1) The LLC performs the 1031 exchange and continues to achieve the goals of the managers through changes or details added to the operating agreement and subsequently consider dissolving the LLC.

2) You dissolve the LLC and reform as Tenants in Common *prior* to the sale of the property. This allows each "member" to have autonomy when the property is sold. It's wise to do this well before you sell the property.

I utilize 5-year, 7-year, and 10-year interest only DSCR loans for clients who are needing to meet a 1.00 DSCR threshold in underwriting and/or want to maximize cash-flow like yourself.

These loans are all 30-year terms. A 10-year interest only, for example, is going to have a fixed rate for 10 years and you will not make principal payments during that period. It is actually a 10/1 ARM, so after the first 10 years the rate will adjust once per year for the remainder of the 30-year term. That adjustable rate is also amortized over a 20-year timeframe for the last 20 years of the 30 year term.

Truth be told, most will refinance their 5/7/10 year IO loan before it ever reaches the adjustable rate period. All that to say, what you desire is out there. Rates are in the 7.5-8.5% range. Feel free to shoot me a message to connect and discuss further. 

 Better than you'd expect. Happy to share some data on it if you want. I'm quite public about performance numbers with my properties there.

Hey Michael, looks like you've got a few uninformed responses here so I'll provide you one from someone that actually invests in Detroit.

I live in California now and have 12-doors in Detroit. I'm still actively investing but I help others get started there as well.

The city has been insanely good to me and my family, but yes... you do need to do a lot of due diligence and/or work with someone that REALLY understands the intricacies of the market. Happy to connect and see if I can be helpful.

I just started working with Nader about a year ago but followed his journey for years. We bought a property for $40k, put about $12k into it and will be refinancing that one appraising somewhere around $95k+. Renter in it paying what they estimated and we cash flow $855. Granted we paid cash. Second property was a flip. Bought for $60k all in including the Reno Costs. They managed and communicated everything, sold that property for $80k- all happened in about 4 months. Of course things come up, they deal with them and communicate delays or issues. We are in NY and they have allowed us to be as hands off but still involved as possible. Nader is about building relationships and keeping a long standing relationship. He has been nothing but transparent and honest throughout, even being honest about what he feels would be a good fit for whatever our long term plans are. We plan on doing more flips and adding to our hood portfolio even more over the next year. 

@Maryam Mostafa I'm not on the wholesale side, but my guess is you have a lot of sellers who have said no
to your lowball offers. I can show you how I can resurrect those dead deals into passive income. If you are
interested feel free to reach me at 770-374-0313 or email me at [email protected]