All Forum Posts by: Eric Mayer

If I have to get a loan at 5% interest, how much am I making? I’d lower the price a bit.

Eric

At first glance...

“Anyone investing in prison?” 😂

That’s a lot to walk away from so I would try to make it work. I would ask the owner to finance the difference with a balloon payment due in 2-3 years.

This will be a learning experience to always keep your deposit protected. There is no reason to ever forfeit a deposit. An extension should have been signed.

Eric

You may be doing the investor a disservice if they are just starting out. They would be better off getting better financing in their personal name and acquiring an umbrella insurance policy to protect themself. 

Just make sure they provide the actual income/expenses. Not the “what it should do” version. I like it though at $4.5m if everything is legit. Passes the 1% rule 😂

@Kyle Kadish Good point. I won’t list it in the first year.

It seems like such a gray area. From the research I’ve done, some go 12 months and some go 6 months. There are others who even stretch that and say there is nothing you can do if someone offers you a nice profit. After all, the IRS just wants our intent to be keeping it as a rental.

I have a 4-plex that I purchased February 15th on Daytona Beach and renovated to force appreciation. I was wondering when the majority here thinks I can sell it without any issues.

Sounds like some moisture is coming through the slab and got trapped under the laminate pad. This is normal here in FL. I would bleach and then use a product like MVP over the concrete before installing the new floor. 

I see a lot of 4-plexes come up in your area. You could use that same 3.5% down fha loan and live in 1 unit while renting out the other 3 if you really want to start with a bang.

Eric

@Ryan Proffit That is a good strategy, but on this one I just went in with full ask, 15% down, 5% interest, 30 year amortization, 7 year balloon. I feel that was a fair offer for both parties, but I did go a bit higher on the monthly payment after some negotiation. Offering full ask will get most sellers to think about it in my experience. 

Eric