All Forum Posts by: Chris Jackson

Hello BP world.  So I am starting out with my investing.  I am getting some things done, but I've come across a pair of possible deals that I want, need advice on. Both situations are similar, though they are with different sellers. For seller #1, James Taylor (not made up), there is a triplex he wants to sell privately that is grossing $3,000 a month. He's asking $169K. He also has another property that he wants to sell, but hasn't put up a sign or listed it or anything. It is a commercial property. It sounds to me like a hot mess, but it's probably just because I haven't been able to coordinate schedules to go see anything with him yet; there is a warehouse, a beauty salon, and I think a couple apartments also. He wants something like $260K for that property. It apparently grossed $4,000 a month. This seller sounds maybe interested in owner-financing a portion of the property to me.

For seller #2, Bill H., he has a four-plex that is fully rented he is trying to sell privately for $170K. Once again, I'd normally need a residential loan for this property - but he ALSO has an off-market 8-plex that he wants to sell because he's old and wants to liquidate all his real estate assets. He is interested in selling that one for $370K (although he seemed to sort of pull that number out of thin air, so it's probably negotiable).  This guy also sounds pretty willing to carry a 2nd mortgage (25%) with a 3-year balloon to help me get into the properties.

So both sellers have one property that would normally require a residential loan, and one property that would require a commercial loan.  I have three questions:

1) Is there a way that I can lump one residential property and one commercial property into one commercial loan to cover everything?

2) Can you refinance commercial loans like you can residential loans (I'm thinking sort of BRRRR), so that I'd be able to pay these guys off after 3 years by getting a new loan?

3) Both of these gentleman have expressed their concern with selling everything at once due to capital gains tax. What is/are the best ways that they and I could both benefit in these transactions? They want to avoid as much tax as possible, and I need their help to get into the properties.

Thanks!

Chris

I think you don't understand my plan because I don't have one yet.  I'm just trying to wrap my mind around how to wholesale a trailer home and what sorts of pitfalls I should be aware of before wasting my time driving out to see the thing. it's am older home, so I was sort of assuming my only orion would be to wholesale the deal based off of the land value alone. 

Could anybody give me a little information on the HUD you're talking about? What is a HUD label? Any idea how much one might make off of scrapping it?

I was assuming it would be a tear down, so only worth my time if he owns the land and it would be worth the price just for the land alone. sound about like what you're saying?

Hello everyone! So about 2 weeks ago I sent out postcards as a means to find some wholesale deals. I've had a few hits so far, but the one I am the most uncertain on is a guy that emailed to tell me he has to move to Colorado and has to sell his 1979 trailer home. what sorts of information do I need to be thinking about/asking about when I call this guyto discuss things, besides whether he owners the land versus renting the lot he lives on from somebody else. I heard a podcast from a while ago with a super-high energy wholesaler who said his first deal was a trailer home, but didn't really give information about why he likes those deals so much. Anybody doing much with these and can provide me with some insight? Thanks!

right. Dumb of me. I still have my head in the world of getting lines of credit. Ha-ha. That makes sense. So the loan is based off of how good the deal is, not just my credit score, right? And will I have troubles getting a commercial loan the same month that I get a residential loan? How about 2 commercial loans on one month?

Thanks guys. So if I have no collateral...? The commercial loan is impossible? We are renting. The most I is a car and a van as collateral.

Ok... So banks won't give me two conventional mortgages within one month, right? How long does it take until a bank will give me a second conventional mortgage for a second investment property?

Do I have to have an LLC in order to be considered for a commercial loan?

great! Thanks everyone. The deal for me actually feel through, but now I know a lot more about section 8, and I think I'll probably list my other rentals with section 8.