All Forum Posts by: Tom Horan

@Steve Vaughan - Appreciate the insight. That makes sense - I'm assuming this all depends on the owners tax bracket as well. I am far from a tax expert, I just want to have a general understanding of the tax benefits from owner-financing. Still working on the numbers a bit - and need the owner to feel comfortable with this concept.

2 properties next door to each other zoned for mixed use residential/commercial. Also another building out back with an apartment and shop space making 5 units for revenue (I feel there is value add potential as well for another unit or two)

These are the numbers I'm shooting for in an ideal world:

Purchase Price: $550,000

Down Payment: $50,000

Interest at 6% for 5 years with a balloon amortized over 30 years.

I need to see the books to be sure of these numbers - but I'm being told $6,000 in monthly rent. The numbers look good with those figures, but we'll see what happens! Thanks again Steve.

Hey BP -

I’m looking for some capital gains tax advice as I try to convince a seller to owner finance a multi unit property.

From a tax benefit standpoint for the seller, is it more beneficial for him to sell at a lower purchase price and get higher interest rates OR sell at a higher purchase price, and lower interest rate. I can certainly crunch the numbers but I’m asking the question specifically from a capital gains tax standpoint. I would think lower purchase price and higher interest rate would be more beneficial for him. Is this thinking correct?

Thanks in advance. Tom

@Matt M. Not yet but I'm still working on it. Thanks

@Matt M. and @Bill S. 

Thanks for the advice. One thing I didn't mention is that this property is zoned as a mixed use business. Does that change anything in the conversation of seller-financing?

Hey BP - 

Trying to land my first deal and could use some advice on how to structure a win/win deal for my seller and myself. 

This property has 4 units bringing in $6,000/month currently (all units rented). Depending on the terms, I think the seller is looking to get somewhere in the ballpark of 500k. Seller is an older guy and doesn't want to get killed with capital gains but is also a tired landlord. I'm thinking seller financing would be the best bet to at least spread out the taxes but I could be wrong. I'd like to come up with an attractive deal for both parties and not scare the seller away with a low-ball offer. I have some rapport with the seller and think he'd like to sell to me if the price and terms are right.

I'd be looking to house hack one of the four units and I'm wondering if I could finance some with seller financing, and some with an FHA. I'm clearly not an expert on structuring deals and creative financing - Looking for some help, BP!

All - thanks so much for the words of advice. I appreciate it!

I am interested to hear more thoughts about renting personal residence. Pretty tired of paying down a mortgage that's not my own - especially in a hot rental market. 

Hey BP - I'm a 28 year old living just outside of Denver. My short term goal is to buy a home for a personal residence. My long term is to build equity and an income portfolio through rental properties. With the Denver market where it is - I'm looking for opinions on the market cycle and when to get in. I cringe at the thought of buying in a crazy hot market - especially as a 28 year old looking to start on a successful path in real estate. I appreciate any advice and opinions on the cycle and when to make the jump. Thank you!

Trying to find the podcast with the guest speaker from Everett, Washington - just north of Seattle. Listened to it a while back but can't seem to track it down. Thank you in advance!

@Justin R.

Spot on - I'm doing that as we speak. I appreciate the advice and reinforcement.

Thanks for your time!

@Joe Splitrock I'm assuming free-and-clear. Sale in '78 for 35k in a market that can demand close to 310k. Lots of equity for sure. Thanks again.