All Forum Posts by: Ty Coutts

Hello, Mark Svendsen, based on the information provided, here’s my analysis and some considerations regarding the trustee's decision and your options:

1. As the trustee, there might be legal obligations or fiduciary duties to act in the best interest of the beneficiaries of the trust. This often involves accepting the highest reasonable offer, considering market conditions and appraised values.

2. The house has received significant interest, as evidenced by seven offers within two weeks. The jump from the first appraisal to the second ($2.40M to $2.65M) indicates potentially increasing market value, possibly due to staging and improvements.

3. The trustee accepted an offer of $2.855M, which is below the highest offer received ($3.15M).
Relisting could potentially attract higher offers, especially if the second appraisal suggests a market value closer to $2.65M.

4. Relisting involves certain risks, such as market conditions changing or not receiving offers as high as $3.15M. The earnest deposit of 40% from the accepted offer is a significant indicator of buyer commitment, but it may be forfeited if the deal falls through due to relisting.

While the second highest offer of $2.855M is attractive and already under contract with a substantial earnest deposit, the decision to relist for potentially more (up to $3.15M) involves weighing the risks and rewards carefully. Consulting with a real estate attorney or financial advisor who understands trust law and real estate transactions could provide valuable guidance in navigating this decision, ensuring it aligns with the best interests of the trust and its beneficiaries.

I hope this helps you out, good luck!

Hi Ashwin,

I do not personally know about this area, but I can give you some insight on how to go about finding out: 

Investing in properties near I-44 around 63rd and Kelley in Oklahoma City requires careful consideration of neighborhood dynamics, rental demand, and property condition. Begin by assessing the area's overall appeal, including factors like crime rates, school quality, and amenities. Properties in this location may vary in age and upkeep, impacting maintenance costs and potential rental income. Research local rental market trends for 3-bedroom, 2-bathroom homes to determine competitive rental rates and ensure they align with your financial goals.

Consulting with local real estate professionals can provide valuable insights into market trends and potential challenges. Conduct thorough property inspections to identify any maintenance needs or structural issues that could affect rental income. Financially analyze your investment, including expected rental income versus expenses such as taxes, insurance, and vacancies. By leveraging local expertise and conducting comprehensive due diligence, you can make informed investment decisions that align with your long-term financial objectives in the Oklahoma City market.

Hi, Victoria E., it’s common to ask for a down payment of 10-20% of the sale price. 

1. In your case: For a $200K house, a 10% down payment would be $20,000, and a 20% down payment would be $40,000.

2. Check current mortgage rates as a reference. As of now, mortgage rates vary but are generally around 6-7% for a 30-year fixed-rate loan. Rates for seller financing are typically higher than conventional mortgage rates to compensate for the increased risk. A good range might be 7-9%.

3. As for fees, you should consider origination, processing and late payment fees. 

4. Loan servicing companies charge for managing the loan, collecting payments, and handling escrow. Fees can range from $15 to $50 per month, or a small percentage of each payment. You can pass these fees on to the buyer, include them in the monthly payment, or pay them yourself. If the fees are passed to the buyer, ensure this is clearly stated in the terms.

5. The closing costs to consider are the recording, legal, title search, insurance, appraisal, and escrow fees.

6. Some terms you may find helpful:

Repayment Schedule: Clearly outline the payment schedule (monthly, quarterly, etc.).
Balloon Payment: If applicable, specify the amount and due date of any balloon payment.
Prepayment Penalty: State if there’s a penalty for paying off the loan early.
Default Terms: Clearly define what constitutes a default and the consequences, such as foreclosure procedures.
Insurance Requirements: Ensure the buyer maintains property insurance.
Maintenance Responsibilities: Clarify that the buyer is responsible for property maintenance and repairs.

I hope this helps you out, have a great day!

Hey Nick,

Navigating the end of a 10+ year real estate partnership without an operating agreement demands a strategic approach. Begin by seeking legal counsel to understand default partnership rules and facilitate negotiations. Assessing the portfolio's current market value through a professional appraisal is crucial. This valuation will serve as the foundation for discussing buyout terms or the equitable division of assets between you and your partner. Considerations should include existing debts and liabilities associated with each property to ensure a comprehensive evaluation.

Communication is paramount throughout this process. Despite any reluctance to address the situation, maintaining transparency and professionalism is essential. Procrastination can lead to misunderstandings, increased legal costs, and the potential for legal disputes if negotiations deteriorate. Furthermore, delaying decisions may prevent both parties from pursuing new opportunities aligned with their respective goals.

Evaluate your long-term financial objectives and personal aspirations for the portfolio. Whether considering a buyout, division of assets, or a complete sale, clarity on your future direction is key. By prioritizing open dialogue, seeking expert advice, and focusing on equitable solutions, you can navigate the partnership dissolution with minimal friction, respecting each other's contributions while safeguarding your financial interests.

Hope this helps! If you need further assistance or some recommendations, please feel free to reach out to me directly. 

Hi Tim,

There are several effective strategies and resources you can use to stay informed about future development planning in your area, without solely relying on attending city council meetings:

City Planning Websites: Most cities have planning department websites where they publish upcoming development projects, zoning changes, and long-term planning documents. These websites often include project proposals, public notices, and contact information for city planners.

Local Newspapers and Publications: Stay updated with local newspapers, magazines, and community newsletters. They often report on upcoming development projects, zoning changes, and issues discussed at city council meetings.

Online Forums and Neighborhood Groups: Join local online forums, neighborhood Facebook groups, or Nextdoor. Residents often discuss upcoming developments and share information they've gathered.

City Council Agendas and Minutes: Review city council agendas and minutes, which are usually available online. These documents can provide insights into discussions and decisions related to development projects.

Network with Real Estate Professionals: Connect with local real estate agents, developers, and property investors. They often have insider knowledge about upcoming projects and market trends.

Attend Community Meetings and Workshops: Many cities host community meetings, workshops, or open houses specifically for discussing future development plans. These events provide opportunities to learn about and provide feedback on proposed projects.

Utilize Planning Apps and Websites: Some apps and websites specialize in tracking real estate development projects. Examples include BuildZoom and Zonda (formerly Hanley Wood).

Property Records and Permits: Monitor building permits and property records. Significant renovations or demolitions in certain areas can indicate potential future development.

These are just some recommendations. There are numerous other ways to go about getting insights into future development planning. Please feel free to reach out if you would like more suggestions or if you just want to discuss. Hope this helps!

Hello, Lee Israelsen, when you build a house and include a basement apartment that you plan to rent out, you may be able to write off a portion of the expenses associated with the construction and ongoing maintenance of the rental unit. I would consider the business uses of your home, the basement apartment is considered a rental property if you rent it out. This means it is a business use of your home. You will need to allocate the expenses between the personal and rental portions of the house. Only the expenses related to the rental portion can be written off.
Allocation can be based on the square footage of the rental area relative to the total square footage of the house.

As for your deductible expenses, you will need to allocate the expenses between the personal and rental portions of the house. Only the expenses related to the rental portion can be written off.
Allocation can be based on the square footage of the rental area relative to the total square footage of the house. Any costs directly associated with building the basement apartment, such as separate entrances, kitchen installations, and bathroom fixtures, can be directly allocated to the rental portion. If the basement apartment has separate utility meters, you can deduct the actual costs. Otherwise, you need to allocate based on usage or square footage. Expenses for maintenance and repairs specific to the rental unit are fully deductible. Shared maintenance costs should be allocated. The portion of your homeowner's insurance attributable to the rental unit can be deducted.

Building a basement apartment can provide valuable tax deductions if you rent it out. By carefully allocating expenses between the personal and rental portions of your home, you can write off a portion of the construction and ongoing costs associated with the rental unit. Consulting with a tax professional is highly recommended to ensure compliance with IRS regulations and to maximize your tax benefits. I hope this helps.

Sounds great. Give me a call whenever so that we can discuss further. My cell is below, have a great day!

Hello, Carrie Cavender, I am a mortgage loan officer, and I think I can help with your situation. I understand that life is unpredictable, and selecting the proper mortgage on your home is crucial. I would love to help you find the best solution to your troubles, please call me at the number below if you're interested.

719-641-5169

Also, what state are you in?

Have a great day!

Hey Jordan,

There are a few pros and cons to consider for each option here.

Keep the Current Property and Increase Cash Flow
Pros:

Stable Income-Your current property is paid off and cash flowing $1,000 per month after expenses. This provides a steady income stream with minimal risk.

Appreciation Potential-The property has appreciated significantly since purchase, and you could continue to benefit from further appreciation in the future.

Minimal Hassle-You're already familiar with the property, and since it's paid off, you don't have mortgage payments or associated risks.

Cons:

Limited Portfolio Growth-Keeping the property means your investment portfolio remains concentrated in one property. Diversifying your portfolio can reduce risk and potentially increase overall returns.

Opportunity Cost-You might miss out on potential opportunities to leverage your equity and acquire more properties, especially in a market where finding cash flowing properties is challenging.

Pursue a 1031 Exchange
Pros:

Portfolio Expansion-A 1031 exchange allows you to diversify and increase your investment portfolio by acquiring multiple properties. This can potentially enhance long-term wealth building.

Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.

Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.

Cons:

Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.

Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.

Either one is a valid option, but overall it depends what your financial goals and restrictions are. Hope this helped! Please feel free to reach out directly if you would like to discuss further or if you have any other questions!

Hello, Brandon Williamson, I have plenty of experience when it comes to loan exchange. I assume you are referring to refinance, loan modification, assumption of mortgage, mortgage assignments, etc. If so, I am happy to answer any questions you have. I am a loan officer licensed all over the country, feel free to message me with questions.

Have a great day!