All Forum Posts by: Skip Reath

Hi Simon.  I have a rental in Warren and am happy with my PM.  He is local to the area.  PM me if you like and I will get you his contact info.

Scott I would be interested in your contractor referral for the Brighton area.  Have a sfh I need some work done on.  Appreciate any suggestions you might have.

Any recommendations for a licensed appraiser in the suburbs of Detroit?  Have 6 investment properties that I need to have appraised for IRS purposes.  Any idea of costs for this service?

Agree that running a fix/flip operation from out of state is a challenge but can be done.   Just would have to vet the people your working with very carefully.  @Joe Villeneuve  I would be interested in connecting with you as I do some fix/flips in metro Detroit.  

@Marian Smith,@Carl Fischer 

Thanks for your input.  Appears the consensus is to have a licensed appraiser value the properties.  Will most likely look for someone who would be able to appraise all 6 properties.  Just another reason not to own property in a tax sheltered entity.   

@George 

@George Blower Yes I understand you have to have documentation supporting your values. My question is does it have to be a licensed appraiser or would say a licensed real estate broker be able to provide the value using current CMA's and such to establish a value? Can get expensive to have 6 appraisals done. Thanks for your input!

@Brian Eastman So Brian if a portion was in cash could I just convert that portion and not involve valuing the real estate?  According to my administrator all my assets in the plan are valued and then percentages are used to determine what is in the Roth portion and what is in the taxable portion.  Confusing at best.

Have a question regarding valuing property held in my 401k plan.   In speaking to my 3rd party administrator regarding converting some of my 401k to the Roth election and paying the taxes they said I would need to get appraisals on all the property held in my 401k.  According to them this is the only acceptable way to get accurate values for determining plan asset value.  Is it possible to use the taxing authority assessment along with a licensed broker’s opinion as to the values.  Would like to avoid having to pay for multiple appraisals. Has anyone had experience doing this?  Thoughts??  

@Greg Schow  Hi Greg.  In my situation my original plan was to close 7 of the units all at once which would put me below the 10% ownership.  Found a lender who had pulled this off before.  As it played out I had an investor step in and purchase 2 units that still needed rehab,  cash deal although at wholesale price.  Then found a foreign investor who purchased 2 units at retail.  That  put me below the 10% ownership and closed the rest conventially.  I believe in June Fannie/Freddie changed the 10% ownership to 20%.  As Wayne said there are lenders who will lend on these but with higher down payments and slightly higher interest rates.  Which tends to limit your buyer pool.   Don’t know your situation as far as the types of condos and to whom your selling to.  If they are rentals you might have to sell some of them wholesale to an investor to help get you below the 20%. Or if higher end owner occupant type condo may have to offer a discount to offset the higher interest rate.  Would inform the buyers that once you sell enough of them they could do a refi and get a better rate.  Would try to find a realtor who has experience in selling non-warrantable condos to help.  Let me know if you have any other questions.   Wish you the best.

Skip

Hey Jeff

I had a similar situation with 11 condos I was selling.  Typically your investor buyers want to pay a wholesale price and are more savvy buyers.  On the plus side a lot of times they have cash and will purchase as is and can close quickly.  Retail owner occupant buyers usually will pay more for your property but then there are lenders involved and possible repairs and concessions to deal with.  And of course multiple closings.  That being considered, in my case I chose to sell my units individually and by doing so netted an extra 150k.  It took 8 months and a fair amount of patience but I think it was worth the effort.  That was my experience.  Hope it helps...