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dvought

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Posts posted by dvought

  1. Posted · Report reply

    I have an updated and renovated rental house in Kansas City, MO that I would like to get a lease option tenant for. (I am the owner.) House is on Michigan Avenue in zip code 64130.

     

    3 BD 1.5 BTH

    2-Story With Full Basement

    1,575 sq. ft. on 5,168 sq. ft. lot with fenced back yard

    New Central A/C and Heat to be installed prior to move in

    Hardwood floors, fireplace downstairs

    Upstairs carpeted

    All new thermopane windows

    All appliances included

    Wireless alarm system installed

    Walking distance to church

     

    Looking to rent to own (or just rent) for only $675/month with $1,000 Option Fee, which you can keep if you bring the tenant-buyer. (Previously rented to Section 8 tenant for $800/month.)

     

    Selling price is $69K (advertised out elsewhere on-line for $75K). Willing to give $200/month rent credits (30%) for a 36-month option! Also open to do a land contract, SWO, CA or any other creative way to get this done!

     

    Photos/info at http://www.postlets.com/res/4899065

     

    Email me at hopefulhomesolutions at hotmail dot com or call 631-219-2295 to discuss options.

     

    Thanks!

    Dawn

  2. Posted · Report reply

    I am direct to a seller who has acquired the following condos and is looking for a RWA buyer:

     

    420 condos in three different upscale condo locations in Florida

    Naples, FL - 144 Units

    Fort Myers, FL - 131 Units

    Coral Springs, FL - 145 Units

     

    About 86% of the units are leased.

    $84,700,000 BPO.

    Seller looking to sell this for 50% of BPO ($42,350,000)

     

    I have the Offering Memorandums from the seller that have all of the details for each property. Please PM me or email me so we can get an NCND in place, and I can send those out to you and go from there.

     

    Thanks.

    Dawn

  3. Posted · Report reply

    I am the Seller's Representative for a bulk REO seller that currently only deals in Nationwide packages anywhere up to $350M. I currently have a NW tape with 387 properties on it from 27 different states. BPO is priced very conservatively at $19.35M, and the purchase price is about $7.6M (39% of the conservative BPO, plus 3% commission). I also have a 10% BPO Spot Check file to give a buyer to help show that the BPOs are way underestimated.

     

    Please email me for more information and to get a copy of the tape and spot check file. If you were interested this could potentially close on Monday or Tuesday.

     

    Thanks.

    Dawn

    HopefulHomeSolutions@hotmail.com

  4. Posted · Report reply

    While you are at it, get an opinion on the same investment strategy within a self-directed IRA. If real estate investment is a permitted activity within the IRA, I don't see a UBIT issue there either. A professional IRA custodian would be the best person to ask this question. I am sure it has come up many times before.

     

    According to all of the self-directed IRA folks I spoke to, they all said the IRA would be subject to UBIT if they leveraged a flip or a buy and hold rental purchase. Both the self-directed IRA and Solo 401k are only allowed to get non-recourse loans. Or I guess I should say more accurately, getting a recourse loan where I personally guarantee the note instead of just having it guaranteed by the property is a prohibited transaction for both the IRA and 401k, and would/could trigger the distribution of funds and associated disqualification and penalties just like any prohibited transaction in those entities.

  7. Posted · Report reply

    I asked the company who I may have set this up for me. This is what they said:

     

    "Please see IRC 514©(9)©(ii) for Solo 401(k) UDFI exemption." (The first c should be a small c and the second c should be a big C, but it keeps posting as copywrite symbols even when I try to fix it. :wub: )

     

    Now of course that's Greek to me, but I'm hoping someone can confirm if that says a solo 401k is exempt from UBIT tax. They also said they have a determination letter from the IRS that states it is exempt, which they will give to me with the rest of the paperwork when they set everything up.

     

    Is there a website to go to to see what this citation actually says?

  9. Posted · Report reply

    I've been looking at setting up a self-directed IRA and came across another option that may work for me even better - a solo 401K with checkbook control. For the solo 401K, I don't need to set up a separate LLC, and therefore don't need to register in every state I will do business in (because it's set up as a trust), I can contribute higher amounts, you don't file a tax return (except for a 5500 form or something like that if your account goes over $250K), and if I obtain (non-recourse) financing on a property, I have been told that no UBIT tax would be due, which is not the case for a self-directed IRA.

     

    Can any tax experts confirm if UBIT tax would be due if the solo 401k trust obtained a loan on a property? Not a lot of people seem to be familiar with the solo 401K. My CPA didn't even know what it was, and he works with a lot of real estate investors.

     

    Thanks.

    Dawn

  10. Posted · Report reply

    I am converting my IRA into a self-directed IRA with check book control to have more funds available to invest in real estate. I've narrowed it down to two companies - CheckbookIRA.com and Guidant Financial. They will both basically do the same thing in terms of setting up everything for me, and then a custodian will handle the yearly filings/requirements.

     

    Does anyone have any feedback on either of these companies? From speaking to the representatives, my gut opinion is that Guidant has more experience and knows what they are doing more than CheckbookIRA.com. (Not to say either would do anything incorrectly, but for example, Checkbook is telling me I can pay for things like training and travel to go to tax lien auctions out of the IRA LLC that is set up, but the Guidant rep is telling me I shouldn't.) CheckbookIRA is $500 cheaper than Guidant for the initial set-up fee, and the yearly custodian fees are about $40 cheaper per year, but I don't want to run afoul of the IRS/DOL regulations and do something to jeapordize the IRA tax status. If I can get Guidant to match their competitors price I will definitely go with them, but that remains to be seen.

     

    I've seen some good feedback from a couple of investors related to Guidant, and a local investor I know used CheckbookIRA and hasn't had any problems.

     

    Anyone have any feedback, good or bad, about either?

     

    Thanks.

    Dawn

  12. Posted · Report reply

    Looking for a buyer for a $1M tape with 13 SFRs in the state of FL-1, MA-3, RI-6, VA-1, CA-3. BPO value of properties is $3.58M. Purchase price is $1M (28% of BPO) plus 3 points in commissions. Buyer proofs up by wiring his 10% earnest money ($100K) to a national escrow company. This tape will be spoken for on Wednesday, 10/22/08. Tape is available and comes from a banking institution directly to my contact.

     

    Send me an email if you are interested. Hopefulhomesolutions@hotmail.com

     

    Thanks.

    Dawn

  14. Posted · Report reply

    Thanks Dave. I always take what people say with a grain of salt if it's main purpose is to sell you their "system". They have listed in their system all IRS and case law citations that supposedly back up their position, with other techniques to help avoid an audit altogether as well.

     

    Some of the ideas were pretty radical - not illegal, but definitely out of the box, although as real estate investors, that's not necessarily a bad thing.

     

    Thanks for the insight!

    Dawn

  15. Posted · Report reply

    This gentleman was saying not to use an S-Corp to flip properties, and not to segregate your flipping and long-term rentals into different companies, but to use an LLC (or actually 2 LLCs) for both at the same time. The reasoning was so you wouldn't be considered a dealer if you mixed the two techniques, because your overall goal would be to hold properties long term, and the flipping was just to fulfill a need for cash to carry the rental properties. I'm simplifying greatly, but that was the gist of it.

     

    He said the only reason people use S-Corps was to save on social security taxes, but if you are classified a dealer you will be paying a lot greater taxes than that. He basically said don't use an S-Corp for real estate investment, and to only use multi-member LLCs. He was suggesting having you personally as a 95% member, and either another LLC or even a C-Corp as the minority member. (C-Corp if you wanted to deduct a lot of the fringe benefit type of things that you can only write off with a C-Corp.)

     

    I have an S-Corp and two LLCs. The S-Corp is currently the sole member of the LLCs, but my tax accountant said this year we will add my other LLC as a minority member in each so that I'm not a disregarded entity for tax purposes.

     

    Anyone have any insight or advice related to this?

  16. Posted · Report reply

    Hello all! Just seeing if anyone here has had any successful deals while being mentored by this guy Joe Crump? His prices seem a little steep and it almost seems like he is just in it for the money. His mentoring program is $10,000 and he has a monthly newsletter that is $39.95 per month

     

    I used to get his emails all the time. He seemed to give very broad generalities and not much detail, but then again he was trying to sell his mentoring program. At one point he asked for any real estate investment "success" stories, even if they didn't have anything to do with his program. He was giving away something free if you submitted something (don't really remember what it was), so I described a flip I did with some partners a few years ago. A little while after that I saw myself quoted on his website saying how much money my partners and I made on the deal (a very small excerpt from what I had written). The way he presented it, it made it seem that I had used his system to make that money, when in fact it had nothing to do with him, and I never did anything more than read his email advertising. I never subscribed to or purchased any of his programs. It was at that point I questioned all of the other things on his website.

     

    Make your own decision!

  18. Posted · Report reply

    Hi Babs,

     

    I don't have experience with wholesaling (other than what I've learned in seminars), but I do know investors that would potentially be interested in purchasing your wholesale deals in the Albany area. Actually, Albany is also in my 5-year plan for an area I will be targeting for buy-and-hold rentals, but that is a few years away, as I am currently concentrating in some other areas first.

     

    When you do get any of those deals, either post them on this site or send me a PM, and maybe we can do some business!

     

    Best of luck!

    Dawn

  19. Posted · Report reply

    have you tried zillow or realestateabc.com ?

     

     

    Did you get your comps yet?

     

    I was able to piece some things together from public County websites, what a realtor gave me, and some investor/home buying websites, thanks to some great suggestions from people on this board and other forums. THANKS to all for the help! It wasn't easy, and some were rejected by WaMu (because it turned out some were banks just taking back the houses at a sheriff's sale for what was owed).

     

    What I submitted semi-worked on two of the houses (the banks brought the appraised value up close enough to 80% LTV, even though the houses are really worth a lot more), to at least figure out what to propose to get to the full 80% without coming out of pocket to any extent. The 3rd house was with a different appraiser than the other two, and the head of WaMu's appraisal dept. said that 2 of the comps I provided were >2 miles away (and the 3rd was a bank taking), so they kept the value at the same riduculously low number. I emailed to all of the mortgage folks involved, their supervisors, and the head of the appraisal dept. PDF's of MSN Map directions showing the 2 properties were only 0.4 and 0.5 miles away, respectively, but the head WaMu appraiser is apparently not competent enough to read a map accurately, and basically refused to do the re-evaluation. (I'm now going through my 3rd lender to refi that 3rd house.)

     

    BTW, still haven't closed. After 2 weeks of Underwriting reviewing the file (which I was told numerous times by the loan coordinator takes 48 hours), WaMu sent my file for "extended review". I'm figuring they will jerk me around until the regs change on August 1st and then say they can't close. WaMu has been the absolute worst lender I have ever dealt with.

     

    Sorry for the digression/venting. Can you tell I'm very frustrated?

  20. Posted · Report reply

    Any chance she wants to move to FL or TN?? I've got a few deals with her name on 'em. . .

     

    Sorry Michael...I think that's a little too far from the school district she was looking for! ;)

    Maybe the school district isn't as good as she thinks if they don't offer a commuter bus like this:

     

    post-1-1213868263.jpg

     

    LOL! The funny thing is that the school district she wants is really not good, but it's not as bad as the other one she said she didn't want!

  22. Posted · Report reply

    Hi All,

     

    Do you have a Long Island rental you want to fill? I've come across a good tenant who needs to move because her landlord wants to sell the house she's living in with her children. She has paid her rent on time with no issues for the past 3 - 4 years. She has a steady income that is confirmable, but currently has bad credit that she is working on cleaning up. Here's what she is looking for:

     

    At least a 3 BD house (would prefer house to an apartment)

    Currently lives in Ridge; would like to be somewhere in or near the Longwood School District, but NOT in the William Floyd S.D.

    Can afford $2,500/month for rent, utilities, repairs, etc.

    Doesn't have any kind of substantial down payment, but would be open to a Lease Option as well as a straight rental as long as it fit within $2,500/month

     

    Please either post responses here or email me at HopefulHomeSolutions@hotmail.com if you have a specific house available. Her landlord is pressuring here to either buy the house or move so he can fix it up and sell it, so she is looking to move on this as quickly as possible.

     

    Thanks, and happy investing.

    Dawn

  23. Posted · Report reply

    Can someone tell me if the following is a potential deal?

     

    Seller is very motivated. 2bed/ 1 bath. House is brand new built last year. Comps are around $85,900. Seller said she'll take what she owes which is $79,000. Her payments are $575/month - 30year 6.75% conventional. Area is pretty stable and has not depreciated. We're expecting a big population increase in the next 2 years due to a another big company moving in. I asked the seller if she would be interested in a CA and explained the benefits but she wasn't open to the idea.

    Can I do anything with this?

     

    Thanks,

    Patrick

     

    If it can cash flow for more than $575/month then take it Sub2. Be sure to figure in vacancy rates, repairs, and insurance (keep the owner's existing insurance in place as well) on top of the $575/month cost to determine if you will cash flow.

  24. Posted · Report reply

    I am in the midst of refinancing a balloon payment that is due very shortly on 3 houses in Kansas City, MO. Bank #1 was processing and going along fine to close until at the last minute the underwriter didn't like the "feel" of the loan - she thought somehow I was related/partners with the person holding the mortgage (who I had just bought the house from), and thought we were trying to cash out the house. Had no bearing in truth, but still killed the refi loans.

     

    The agreement I had with the investor selling the house was that my purchase price originally would be 75% of whatever the houses appraised for, so I would have 25% equity. I was going for a 75% LTV refi loan on each.

     

    Went to bank #2. Everything going along fine until the appraisals just came back, and they are a lot lower than the first set, so my 75% LTV just went to >85% LTV, which they won't do for investors these days. (They wouldn't accept the appraisals that had just been done for bank #1 between February and March 2008.) The differences in value range from $15K to $24K.

     

    Long story short, they have agreed to let me submit comps for the 3 houses to help substantiate a higher Appraised Value. The oldest the comps can be dated is the date of the oldest comp in their appraisals, which is the end of July 2007 for 2 of the houses and Sept. 2007 for the 3rd house. Apparently there are not a lot of houses that change hands (at least at arms length or not involving investors), as the area is pretty stable, so most of the comps in my original appraisals are just a little older than those dates.

     

    Can any realtors out there run some comps for me for these houses? Otherwise I have to go to Bank #3, and who knows what way they will find to flake out on me.

     

    If there's anyone out there that can help me, please contact me and I will give you the 3 addresses.

     

    MO is a non-disclosure state, so the normal websites I would go to get this info on my own don't have any sales prices, so I need someone with MLS access. If anyone has any other ideas to get comps, I'm open to all suggestions!

     

    Thanks for any help you can provide!

    Dawn

    631-219-2295

    HopefulHomeSolutions@hotmail.com

  25. Posted · Report reply

    I was supposed to close on Friday on a refinance loan for a house in Kansas City, MO. Everything was going along fine, but now at the last minute the Underwriter is saying they won't move forward because it is 100% financing (which it's not) on an investment house. Here's the details:

     

    Location - Kansas City, MO

    Cash flowing with Section 8 Tenant in place

    SFR - just appraised at $78K

    Refinance Loan Requested - $58,500 (75% LTV)

    Personal credit score (mid-score) - 792 on 2/12/08

     

    I just bought this house recently, so I need a lender with no seasoning requirements. (The house was recently rehabbed, so the title work shows a lot lower purchase price within the past year by the investor I bought the house from.) Also, I'm not looking to pay any points.

     

    The appraisal and title work are already done. I would like to work with a mortgage company who can close quickly. The house is cash flowing, and I'd like to start making money on it!

     

    Also, I have 2 more houses (and in discussions for 2 additional right now) in Kansas City, all of which need refinancing at the same 75% LTV. In addition, I have 3 Birmingham, AL houses that will need the same within the next month or two.

     

    I am looking to work with someone on an on-going basis who can keep the costs down for closing costs, act quickly, and most importantly DO WHAT THEY SAY THEY WILL DO.

     

    I can also close in my LLC, if anyone has a program for that.

     

    Feel free to respond on this forum, email me at hopefulhomesolutions@hotmail.com, or call me at 631-219-2295.

     

    Thanks.

    Dawn

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