All Forum Posts by: Timothy Theiss

Hi James. Two tactics come immediately to my mind: 1. Seller Carry or 2. LLC JV. In the seller carry model Nephew would sell it to you at a price near current retail minus the rehab cost. Once the rehab is over (and 91 days have elapsed) you could refi, pay off the nephew and recapture your rehab capital. Then rent it out for 27.5 years and refi again to reset the depreciation schedule. :-) . In the LLC Joint Venture model, Nephew puts the asset into the LLC as his capital contribution and you provide the rehab capital. Sell it or rent it and share the profits or distributions. Be sure to talk to a tax advisor and legal counsel before choosing either structure.

@Aun Haider.

The previous responses were spot on regarding the difference between lenders (and lack of). One more thing to consider is if the lender will work with the various "First Time" home buyer down payment assistance programs availabe, some based on the home's city.

Reach out to me for more details.

With warm regards,

Tim Theiss , Associate Broker 

Keller Williams Biltmore Partners 

Phoenix, Arizona

An investor friend of mine has a similar strategy and to stay on track he is shopping all around Phoenix.  He is buying homes in the small towns like Coolidge and Whitman, etc.  His most recent flip was purchased for around $27,000 and had a resale of around $150,000.

Investors understand that Money/Assets (Capital) should not be treated like a consumable.  When you consume the $400k it is gone forever.  Put the money to work and consume the rewards of the investment without reducing the principal.  Talk to investment professional but don't give them your money to invest for you unless their fees are less than 2%.  Maybe put 10% into Gold bullion (not stocks) and 70% into Real estate and keep 20% as cash on hand.  However you decide to use it, be careful of new found friends wanting to "help" you.