All Forum Posts by: Stephen Dickey

Hello everyone.

I am in the process of selling one of my rental properties and I currently have a Deed of Trust through a hard money lender on set property. I am working an arraignment to have the lender reinvest the principal owed for rehab on a new property we just acquired once the rental property closes. Basically, he will receive the interest owed on the property and reinvest the principal amount. He has placed a lien (Deed of Trust) on the property as collateral for a previous property we flipped. 

Basically, he is asking for a payoff for the Deed of Trust so everything is on paper. By doing so, we will know exactly how to move forward. My question for you, fellow Bigger Pocketeers, is how to go about getting this payoff. My initial thought is through a title company, but we used my attorney to originally place the Deed. Am i able to use my attorney to do this again? Should I go through a title company? Trying to find the most cost effective method so that we can move forward and begin the budgeting for the rehab on our new property. Does anyone have any experience with this? I am calling my attorney tomorrow, but am just doing some due diligence before i do so. Kind of a simple question, but any advice/tips help.

Thanks everyone!!

I've met Larry, he is a great guy. However, I recommend saving the 'coaching' money and investing in your first property. By joining a program, You'd basically be paying for a system and your coach's connections. But anything you need can and will be found on Bigger Pockets or other means. Just my two cents. Happy investing!!

@Scott Komich welcome! You are at the right place! Do you have any experience with building a MHC from your jobs standpoint? Such as what is required to be approved for funding in order to develop?

@Jessica A. Smith it is zoned for residential use. We would basically need to get the septic people out there to see how many units per tank we could use. We would not fix and flip b/c the reward would not equal the work it would take. @Chris Puckett is is in Lawndale, NC, which is in Cleveland County. Rural area. Land is not cleared and graded - yet. There is still a single family home on the land as well, so it would need to be demolished.

We are going to meet with septic company to see how and what we could do to get the ball rolling. I think we are going to lean in favor of the mobile park. Thanks everyone for your input!

Ok. So I got a deal on 3 acres of land and a SFH in a rural area in North Carolina. The house could be renovated, but it would cost and is basically trashed. I don't know if it is worth fixing up, as the rental market there is not much ($500 or so). The rehab would cost $10,000+.

The way I see it, with 3 acres I could do something bigger.. I am looking for ideas. I am thinking of demolishing the house and clearing the land, putting a couple of septic tanks there and putting some mobile homes on the property. I could probably run 9-10 with no problem. It would just cost.. 

I just know the land has some potential, as it is a big piece of property. I could also wholesale it to an investor if needed, but it will take some work. The market is a rental market, as it is a rural area. It is in good location as well, less than a mile from the church and the school.

What I am asking for is if anyone has any ideas/suggestions as to what you would do in this situation? My options are endless, but I am hoping someone has something I haven't thought of before...

Thanks.

Hey Dave! My business partner and myself will both be atending! It will be our first time so looking forward to meeting everyone!

Hello!

My business had a recent shift of direction and strategy for our company, and it will involve us selling all four single family properties we own. I am wanting to transition into multifamily, and doing so will allow us to gain the needed capital to get involved. Here is my dilemma, and I would love some advice/feedback as the best way to go about this. From my understanding of a 1031 tax exchange, we are able to sell real estate, put the gains with an intermediary, and use the money to purchase a "like-kind" exchange of something equal or greater value, and we can defer the taxes on the sale. From there, there are other stipulations that must be followed. We have 45 days to identify properties we are interested in, then a 180 day window for closing. 

First thing, unless we get extremely lucky, we will not sell all four houses at the same time, definitely not within the time frame the IRS requires. Secondly, the four properties will all sell at different values, which will mess up the 'like-kind' situation. With that being said, we are wanting to combine our gains of all four properties into one 1031 tax exchange to put a down payment on a multifamily property. 

On paper, with the IRS stipulations, this sounds as if it will not work and we will have to shoulder the tax bill, which will cut into our available capital... Is there any way to combine these funds into one 1031 to move forward with our plan and defer taxes? Has anyone ever encountered a similar situation? If so, how did you maneuver it? Are there any loopholes I could take advantage of? If all four properties sale within one of the time periods, could we take advantage of that? Is there anything I am missing with this situation? 

I plan on contacting my attorney to get legal advice as to how to approach this, but I wanted to reach out to the community to get some advice on this situation. There maybe someone who figured out a way to make this happen.

Any thoughts/ideas/suggestions would be greatly appreciated. Thank you very much.

Now that is a beautiful house Bryan. Fantastic job! I know Charlotte is glad to have this one!

@Wendy Patton although I have yet to do a lease option deal, it definitely broke the "science" of it down for me! I plan on incorporating this into my business in the future. Using the power of lease options and subject to's could really open up opportunities for my small business to acquire cash flow to help build my capital! Any updated 2017 advice you could give me for using this method?

Ahh I misunderstood the question! Have you considered forming an LLC with brother and sister? That way it protects the asset and you put the title under LLC name, and since you have the better stats, you could guarantee the loan.