The returns are low but more than $0 with idle cash.If the market does not turn, or it turns less than $20, or takes many years to turn, returns can be okay to excellent.It's hard to invest into a hot market, model assumptions that include a correction, get excited about a 6-12% IRR and pull the trigger...many hold cash instead at a 0% return. 

This was my third auction and i felt really good about a few properties so i pulled the trigger and got one I was asking questions, some i knew or had an idea of the answer, to get some opinions from people on here who have been doing this stuff longer than i have as I have no mentor.

To address this many states pass laws concerning the sale of a controlling interest in an entity... so while you may think you've avoided paying transfer taxes that is not always true.People also do this to prevent a property from being re-assessed in jurisdictions where a sale would typically trigger that.

According to what I heard on the show today, if you buy a property in your personal name and get a warranty deed and later quitclaim it to an entity like an LLC, this is not a sale and can't trigger the due-on-sale clause on the mortgage. 

Once you keep analyzing deals and find the right one you will have an expansive network of people to help you pull the trigger and get your multifamily property.You have endless opportunities and at BP we are happy to help!

@Tom HoranTypically you want to trigger some sort of sale, I have never done a deal with a owner yet but I know you might lose the benefit of starting the depreciation clock over.

:)If she hasn’t pulled the trigger with the agent, you can still talk with her.

You are buying the house worth i.e. 120k and you are getting a 60k credit for taking the land, so you pay 60k at closing.I recommend everyone interested in the sub100 markets to spend a day in the shoes of a property manager in that area before pulling the trigger.

With this prepared, I reach out to the seller to let him know we had a new offer coming over and as soon as he could sign our offer, we'd pull the trigger on inspections and under 11 day closing from that Monday.

I'm ready to pull the trigger on this investment journey and want to make sure I don't blow it on the first house.