All Forum Posts by: Tanner Sherman

The best way to have your cake and eat it too would be to find a 3 or 4 unit property that needs work, fix it up and refinance. Otherwise, it would be worth it to do 20% and get your money working for you. It is dying sitting in a bank account.  

Yes you are correct- FHA is for primary residence and you have to have the intent to live in the property for at least 1 year. 

These can be really great for all parties, you get your rental income and they get paid for the work of managing a STR. Have an attorney look over your lease because people that do rental arbitrage typically bring their own leases to you and will have clauses that allow them to terminate early if they choose.

Reach out to Kim Taylor- she is an expert in the world of syndications nationwide. 

There is going to be a lot of agents that don't renew their licenses. Across the county, the market is shifting. Most agents have never experienced a balanced market, they have only experienced a sellers market. In a sellers market, agents just need to woo the seller into letting them list, and then the inflated market takes control and brings in 15 offers over asking with no contingencies with minimal effort from the agent. In a balanced market, both the buyers agent and the sellers agent have to execute a lot more skill to 1. obtain and retain a client, and 2. negotiate a deal. The agents that were successful purely due to the market being so hot will quit, and the truly skilled agents will be immensely successful when the agent pool gets cut in half. 

As far as automation goes, there will always be more technological advances that make agents work harder, but even Mcdonalds that is going extremely automated still needs humans to run the business. 

As an extremely biased salesperson, I do not anticipate a crash. In the midwest there is still such a shortage of housing that prices are continuing to increase even though the demand has significantly dropped due to the interest rate increases. We have a 9% year over year drop in supply, but a 12% increase in the average home price since Sept of last year. A correction is healthy, but come Spring time we will see what happens to the market. 

 If it's a really good deal I would raise the capital for the down payment, and maybe try and put both parcels on a commercial note at 20% down, then purchase the owner occupied one from the money partner. 

 What is the deal structure you were tryihng to do? 

One creative scenario I have learned about recently is the 1st position HELOC. You basically would payoff all the mortgages and put all the properties under a HELOC and pay all of the cashflow to pay the HELOC down, and use the HELOC to purchase more properties. The deal is that after x amount of years (10-20) you will have the balance below a certain amount.

 Good information Andrew- what about when you and a partner have to personally guarantee the commercial loan? Is it looked at differently than the 100% responsibility in your scenario?