Rob Tara
40+ unit deal. Need help w/ financial analysis
28 January 2025 | 6 replies
I'm trying to raise funds from my family and I am being asked to produce pro-forma scenarios at 2, 5, and 10 years which should include IRR and ROI.
Lauren Ruppert
Can an LLC (sole proprietor) sell a property to an LLC belonging to a son/daughter?
22 January 2025 | 5 replies
If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.The most common scenarios they typically prohibit are:- Gifts of Equity- Bailouts- Leaseback OptionsAt the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.
Katie Southard
Do I sell my rental property and take the cash tax free?
28 January 2025 | 1 reply
Right now you have $1,000 in cash flow that can be used to fund other projects (seed money), pay you in profit to supplement your lifestyle, or fill in any gaps for underperforming properties.
Andy Wang
Should I sell my note? 1.2M @ 8.5% for 4.5 yrs
27 January 2025 | 7 replies
Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option.
Edgar Duarte
should I sell NOW to avoid taxes or hold it for appreciation?
22 January 2025 | 4 replies
@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.
Timothy Frazier
Hard Money Loan
17 January 2025 | 15 replies
@Timothy Frazier This will be tough as the HML will want a 1st position loan, but so will the other lender providing the rest of the funds.
Steven Nguyen
Advice needed--BRRR- SFH
21 January 2025 | 4 replies
@Steven Nguyen Your first step is to liquidate some of your Crypto so you have liquid funds to contribute to the deal.
Joey Backs
US Citizen Non-Resident Financing
4 January 2025 | 9 replies
As a US citizen I have an SSN, file taxes every year on my foreign employment income, hold US-domiciled assets (stocks, IRA, 401k), and I have a ~15 year credit history with a decently high score.
Christopher Lynch
What Is The Best Way to Start Flipping Houses and Raise Capital?
16 January 2025 | 10 replies
I have a couple of funding options on the table and I’d love to hear your thoughts:Funding Approach: I have capital partners who are willing to fund 100% of the project in exchange for 50% of the profits.
Ercilio De La Cruz
Real Estate Entrepreneur
19 January 2025 | 1 reply
Besides that, I have a credit repair and funding company that helps entrepreneurs get their businesses going.