All Forum Posts by: Tyler Warne

@Dave Foster thank you. Yes I would charge 5% for 3 months, and then 2% per month after and hold $50,000 in escrow but would be more flexible than the 180 days a reverse exchange would require - in case his apartment falls through. However, there would be incentive for me and he could still save 485k in taxes. 

I am not doing a 1031. In this case I was looking to hold the property while this seller has a chance to close on the apartment building that he has under contract. He does not want to do a reverse 1031 for the high fee and potential that the apartment building may not close, and would like to still be more flexible in his timing, because he could do a construction 1031 and get rid of all capital gains on this one project. But needs to appease the seller who has been fairly accommodating until this point, and they just want their money. ( he has done 3-30 day extensions) I thought this was an opportunity to help him avoid capital gains and put some money to work in the mean-time. That is all I was really looking at doing. 

OK, I do think that he will be doing new construction on the site and there is a 1031 into new construction of a similar property, but I will see what I can find out. Thank you for your help everyone!

A developer has a property under contract right now, he has the engineering done so that he will be able to develop the apartments. Meanwhile he is selling a property that is in another town and would like to 1031 the proceeds to this land. However the other property will not sell in time for this one to be named. Can I buy the property, hold it for 3 months and then sell it to the developer? Are there any rules against this? Risk is low but his reward and what he is willing to pay is high. The sellers have been dragged along to long and are unwilling to do another extension forcing this buyer to be exposed to maybe $500k in tax liability. 

Thanks! 

Bob, I agree and said that it is not the end of the world. I think that people will still buy, still move, just that unbeknownst to them they will just qualify for a little less, which will, over time, lower demand, increase inventory and ultimately lower prices. 

I agree Alex, and that is why it is not a cut and dry interest rates rise = lower prices. But this could be the start of additional stress on a group of people that may have high consumer debt, which could be the tipping point for an increase in inventory, and decrease in prices. 

As interest rates rise there will be decreased purchasing power. This automatically decreases the amount of house, duplex or whatever we can by (if a loan is required) based on the debt to income ratios that a bank often uses. So how much does it affect us? See graphs below! 

The chart below is of the same thought, just the payment stays the same. Since we are a 'how much is the monthly payment' type of society, the chart shows that this drastically affects the amount of house that we can afford. Approximately a $2400 payment. 

While this does not have a direct impact on the psychology of a buyer, it removes a purchaser from the market, or a price range, which will lower demand and (economic magic) will lower housing prices. 

Why is this not the end of the world? Well when you bought, money was cheap, and your payment is still likely lower or similar to what you can purchase now and going forward. 

@Stephanie Medellin, Thank you for the info! Are these like 200 basis points higher? Is it through a residential lender or handled in the commercial space? Thanks! 

I am writing an article and I am an appraiser and looking for primary data. Curious if anyone has a lender that is lending based on this income, are they commercial lenders? Did you need to provide 2 years experience? Anyone accomplish this through a residential lender? 

Thank you for any feedback

@Samantha Miller would it be possible to charge a fee for people to use the bathroom? Of course the room would be free as the the restrIction states. Market fees for bathroom use are similar to the prices people pay for a room, I hear.