All Forum Posts by: Dave S.

@Jeff Kehl Excellent posting. Thanks for taking the time to write this. It definitely aligns with what me and my business partner and I are working on. FYI if they come back to me a year later its going to be $369K!!!  :-P...(should of taken my offer when it was on the table)

I came across a HUGE amount of off market multi families (totaling over 200 units) in the northeast...It was about time I get into the larger apartment complexes. So I was thinking today, what would it take to get ALL of these??? Go big or go home right? Always thinking the 10X rule. And why not....you do almost the same amount of work for one as you would do for all of them!! Doing some quick math I would need about $4 million to make the 20% down payment. As the properties are priced now, these will average out to be an ~8% cap rate. Im looking to understand what the best structure would be for this transaction, should I treat this the same as anything else...50/50. I negotiate as I do best and do the ground work while the investor(s) just collect the checks? Thoughts?

So Im getting my feet wet with apartment complexes and came across these off market properties. Here is the deal....

Property is from about the 50s with some work done to it in ~80s. Current owner purchased for $350K ($100K under asking) in 2014. Did no work to the exterior and only renovated half of the units (building has 9 total units). Supposedly he didnt renovate the others as the tenants did not want to move. He is now asking $800K! Our numbers dont work out until about $500K is it unheard of to go in at such a lower offer? Is there any cover sheet or summary i should submit with the offer to show justification? Oh, the place is fully rented now at about $75K gross income.

Thoughts???

Beginner question here, what is the right method to peruse a house using a private loan. I need a proof of funds letter to show the seller / seller agent. What does this letter have to say? I heard you can use a picture of the guys bank account, does this work? Seems like you can just take one offline. What I'm saying is that it's doesn't feel like many people would accept this??? Thanks in advance. Dave

So I am closing on my first 100% seller financed deal tomorrow and would like to understand how to handle the payments, especially for tracking purposes come tax time. Obviously I can send them a check every month but what else should I be doing? Sending an updated amortized schedule? Does someone have to send out a 1099 / 1098 or can we be self sufficient?

Thanks in advance

Thanks @Dave Lin

@Gus Mardoni welcome to Biggerpockets and investing in the area. I have some good referrals for you. Ill email them over.

Nathaniel Busch much appreciated. Makes perfect sense to me. Hopefully it will to his accountant as well.

The situation is as such, Seller owes house free and clear Seller is offering me 100% seller financing I'm going through an attorney to get the mortgage note and all paperwork together. Will the seller be responsible for paying capital gains on the property in the tax year of closing???? Or when I go to refinance the property and he actually gets the funds? It's hard for me to believe that someone will be responsible for paying capital gains / taxes on money that they don't have in hand. Once the seller gets the funds (I.e I refinance him out) and he gets the money then he can get taxed on it. Up to that point the only taxable funds would be the income from my monthly payments?

@Philip Pellegrino hope all is well. Check out FL&B. Frotzpatrik Lentz and Bubba. Awesome experiences with them. They know their stuff

I'm about to enter into a 100% seller financed loan and I'm wondering how I need to handle everything to ensure I can still write off the interest on the mortgage note and take advantage of all the other  tax deductions. Thoughts?