All Forum Posts by: Simon W.

Typically a year or 2 or enough equity to match up with the new appraisal price. Typical cashout refi is 70% LTV.

I would just give the owner a call, email, or write to him stating that you are interested in the building and would want to know what can be done to seal a deal with him.

Get a price on how much you think this is worth and willing to pay for. How much capital can you put down? 

typical LLC mortgage loan is 30 year amort. but 5-7 year term, some have 10 years. Most companies will just refi a few years before the end of the term.

Isn't $550/month a bit too low?

At $70k house, I would assume the cap rate should be closer to 8%.

At $550 a month, you're probably in the negative cash flow. 

I do not have enough info to give you a better analysis.

Income: $550x12 = $6600 

Expenses: half of your income: -$3300

Net Income: $3300

Cap Rate: $3300/$70k = 4.7%

Net Income does not cover debt. Maybe someone else can share some light.

@Franklin Spees - I am agreement with you, but as far as who would be willing to pay the fees for property management, accounting services, and administrative tasks, a lot of the BP members wouldn't. Why? you might ask. Simple, they want to do it all.

Owners that have 15+ properties with commercial/office/retail/residential will most likely to focus on getting more deals and less of the traditional services.  

I am looking for some synergy in the BP community. If you are a property management firm and want to outsource your accounting department or add an accounting department, then let's chat. 

No payroll expenses are the biggest advantage of having us on your real estate team. 

I agree with Alan. If you are to the point of making money is priority and accounting is second. You might want to consider getting a helping hand. 

Typically the closing date (selling) you will have 45 days to identify all potential replacement property after the date of sale.

The deadline for acquiring ALL replacement property to complete your exchange is the earlier of 180 days.

Is the property under an LLC? It is definitely not a business owner paying expenses to be at a job site.

I am not a CPA so I cannot answer you regarding the best tax option.

If you are paying rent to your LLC, then you would report the rental income in your P&L, but the depreciation of the building will reduce your net income.

Book value will not change. 

Book value is the day you closed. If you got an appraisal, and the new value is actually lower than what you purchase, would you want your book value to be reduced? 

Typically you will receive the cash from the refi

Debit Cash

Credit Loan Payable (increasing your Loan)