All Forum Posts by: Thaddeus Koster

@Michael Plaks

Yes, so, if the loan is only one year, it all gets deducted that year? Or if the loan term is one year but starts in the middle of the year, it would be deducted over two tax years?

this is what I was trying to figure out. If I google anything ‘short term’ involving rental property I get swamped with VRBO stuff, so all I could find was describing a regular mortgage, and haven’t turned up anything clarifying whether a short-term ‘bridge’ type loan such as you might see with a flip gets treated by the same rules. 

Thanks!

so there's lots of information out there about how to deduct points on a mortgage over time. I just bought a rental property last year using a private money loan, and I can't seem to find any info on whether I can deduct the points on that or not. since the usual formula is to divide the points by the mortgage term, the deduction is usually very low... but the points on a private money loan are high, and the term is very short, so the deduction would be big. Am I totally misunderstanding how this works? 

Hi all, I’m new to RE investing, and I jumped straight to the deep end...

Last summer I inherited some money and bought a property in Olympia that is a grandfathered, non-conforming trailer park of sorts. It has 4 mobile homes on it, 3 are pre-‘72 and the fourth is an ‘84. They’re not in great shape but they’re not terrible either: they’re livable. 

To find cash in a hurry to make the sale, I got a short term high interest private money loan. That loan is due in a few months. I’d like to refinance with something longer term, at least 5+ years. 

I have about 45% equity at the purchase price, and owe $150k. 

Currently the best option I’ve found is a different private lender willing to do a longer term, 3+ years, at 9-10%. 

Though I can afford that, Needless to say I’d prefer to find something better. 

ideally I’d like to get a 15 or 30 year term - it would free up cash from having to make huge payments and allow me to make improvements that would boost the income from it. 

the county will allow me to replace one or more of the mobiles with new ones or one of them with a stick built. So I have the option, to ‘build new’ and get a more conventional loan on the new+land. The challenge still exists in that scenario of finding a lender who would be OK with the other three trailers on the property.

So... anyone have leads on a private lender that would do a longer term loan, or a bank/broker that could set me up with a mortgage on something new while overlooking the old? 

Or have ideas I’m not thinking of? 

So far any lender I talk to that does mobile parks is not happy about the park-owned homes or doesn’t do such a small loan or park. 

Thanks in advance!

Last year I bought a very oddball property, a tiny grandfathered in nonconforming mobile home park. 4 units, all park owned and too old. Livable though. 

anyway I used private money to buy it along with my 45% down, and that loan is ballooning soon. Looking to refinance and having a hell of a time finding anyone to look at it.

Hoping someone has a lead on a really amazing lender/broker etc 

I have the option of replacing one of the units with a new mobile or stick built, or replacing all mobiles with new... for the cost and this location any and all options would work out financially. I just need a few years on a loan to pay it off. 

I can afford pretty high interest but obviously I’d like an option that’s not double digits. 

Any leads are much appreciated!

oh yeah this is in Olympia WA

Hi, this is my first post here. I'm in the middle of closing on my first investment property. it's an unusual one (my style...) and it's given me some hurdles but I'm excited about it! it's a very small (4 unit) mobile home park filled with 30-40 yr old park owned mobiles. the seller has not kept rent rolls and has very little to no documentation of rent history despite it being kept full (this area is very short on affordable housing). so, no proof of income and with the units being older it was tough to find a lender to work with me on it. I got lucky, found a private lender willing to fund it. one of the documents they are asking for is an 'exit strategy letter'. It's probably no big deal and I could give them whatever I write up, but my perfectionist tendencies are showing and I want to do it 'right'... but I can't find any examples to draw from. google searches for such a thing get filled with irrelevant results. 

my exit strategy is simple, after acquiring the property and keeping proper documentation (and making regular interest payments and growing my bank account) for the next year, I plan to refinance with a more traditional lender to get out of the high-interest, short-term private loan. 

can someone please help me with what to include and how it should look? even just an example of one would give me something to go on. thanks!