All Forum Posts by: Tony Aliatim

I have been contemplating moving my properties to an LLC and toying with the same question, thank you for posting this Graham and really good insight Nathan!

Once your equity reaches more than 20%, you should be able to refinance into a conventional loan and get rid of your PMI.

Hi Joe :). Thanks for the post. Is Detroit really the best ROI/Cash flow market in the country lol?

 Hi Jason!

I agree 100%, seller financing gives you the cashflow from the rental, additional equity since the seller determines the interest rate, and no management duties of a landlord. 

What worked for me was finding a buyer who was a little older in age, possibly looking to retire, and having trouble getting a loan from the bank. Many times banks will avoid loaning to elderly. These people are usually appreciative of the opportunity to end their life in their own home (which they can then pass down). 

Also, I like to offer three options based on term and interest rate (below number are from back when interest rates were around 2.5%, I would set the interest rates a few % points above the national average to take into account the risk you are taking)

option 1: 5 year 5% interest 

option 2: 6 years 6% interest

Option 3: 7 years 7% interest

I like numbers that are easy to explain to the buyer and then they can chose the payment which works best for them (customer chose the 7 year option). 

If you have any questions about future deals, let me know and I'd be happy to help in any way that I can :)

 If you don't need the money, then I would take the cash flow and save on taxes. Be prepared to see less appreciation over the coming months as prices could continue to correct, but if you are in it for the long term then this doesn't matter. Also, if you buy a new investment, be prepared for interest rates to eat into your gains. 

My advice, hold your assets, save more money, then buy more if the market correction makes it worth your while :).

Good luck!

Hi Shane,

First, well done as a college student already having a few assets under your belt. 

First question I would ask is, do you need the 60k that you would get after the sale? Also, there are tax considerations to take into account, have you held the property long enough to avoid capital gains? 

If you plan to sell the property, I would look into doing it sooner rather than later as interest rates will continue to rise and selling the property will become harder as the year continues. 

Have you explored selling the house and then using the money to buy two other properties, or even a MF? You could 1031 exchange and avoid paying taxes (you will need to pay the taxes down the road if you pull out the money). 

Otherwise, that high rent is an awesome cash flow opportunity which will be a great safety net as you look for a job.

Hope this helps!

 Hi Mohammed! This is great information, thank you :). Truly, I would like to be a passive investor so this real estate fund/ syndication has spiked my interest. What are the normal returns on these type of investments? I would imagine it is a bit less than if I was able to do them myself, but I would get exposure to larger properties. 

Also, as an investor in funds/syndications, would I still have equity in the property so if it sells then I get a percentage based on my equity? 

Thank you!

Thank you! Just paid for the next General Meeting along with Dinner. Hopefully see you there Drew!

 Hi Drew! I would love to join. Can you provide me the website by any chance? 

I am not familiar with Dodd-Frank so I would love to learn more and meet like minded people. 

Thank you!

 Hi Jason! Thank you for the response. I admit, I was not looking to sell via seller financing as it does have its negatives. In this case, the house was in a middle class/ lower middle class area, and the buyer didn't have great credit. We hit it off nicely and wanted to help him so I did. So far, it has worked out great. 

Seller financing provides nice cash flow without the work of being a land lord which I can appreciate :).