All Forum Posts by: Evan Scott

So my partner and I bought a 6-plex in Cleveland Ohio all cash, we have done some work to it and renewed a couple of leases to raise the rent.  Now we are hoping to get our capital back out and move on to another commercial deal using that money as a down payment on a commercial loan.  If anyone can point us in the direction of a commercial lenders that does these types of loans it would be greatly appreciated!  Would love to hear about Your commercial lender you're using for your deals, maybe you can give them a referral to help them out and myself out!  Thank you! 

Thank you So much for your time and your insight!  Hope you have a great day!

Thank you for your input! That makes perfect sense.  So would you approach a commercial lender in the same state?   Im not even sure if the loan has to be commercial.  Im a newbie. Just wondering what that process would look like

@Account Closed  Thank you for taking time to respond!  We have owned it for 5 months. We have increased rents from 3200 to 4k.  I guess what I'm really asking is does a cash out refinance work the same when youre in a partnership.  Also, do we have to use a commercial loan? 

So my wife and I partnered with a friend on a 6 plex in Ohio. Bought it off a wholesaler for 220k and both of our names are on the TITLE and we split it 50/50 all cash. We did not form a LLC as we had to buy within 5 days by the time this deal got to us. We have improved curb appeal and successfully raised the rents by 10% as they were way under market. We have an investor interested in buying for 350k, but Im wondering if its possible to BRRRR this commercial property as Partners, and get our capital back so we can keep this cash flowing property in our portfolio and not have to pay capital gains taxes. Im not sure where to start, any thoughts or suggestions would be greatly appreciated. Commercial Lender referrals would be greatly appreciated as well. Thank you for your time!

So my wife and I partnered with a friend on a 6 plex in Ohio. Bought it off a wholesaler for 220k and both of our names are on the TITLE and we split it 50/50 all cash. We did not form a LLC as we had to buy within 5 days by the time this deal got to us. We have improved curb appeal and successfully raised the rents by 10% as they were way under market. We have an investor interested in buying for 350k, but Im wondering if its possible to BRRRR this commercial property as Partners, and get our capital back so we can keep this cash flowing property in our portfolio and not have to pay capital gains taxes (im also not sure how to 1031 exchange when its a partnership owned property). Im not sure where to start, any thoughts or suggested would be greatly appreciated. Commercial Lender referrals would be greatly appreciated as well. Thank you for your time!

Thank you so much for your insight! I like your mindset regarding the 10% increase after 1yr.  Thank you for the time you took to reply. We have about 200k equity in our current property, would you pull from your 401k or equity of your primary home, do you personally have a preference? Sorry for the extra questions but I looked at your portfolio and saw that you are indeed in a similar situation regarding housing market. 

Hi! My name is Evan Scott and my wife is Kathryn Scott.  We are a couple in our mid 30s and have two kids, a 8yr old son and a 6yr old daughter.  We both work full times jobs on a 9/80 schedule with every other Friday off.  We live in Ventura County, California.  Our goal is to leave behind multiple rental properties to our children and perhaps gain some financial independence along the way. We currently own 1 home and it is our primary residence.  We purchased this home 3 years ago for 780k with 180k down, we recently refinance for a lower interest rate (did not pull out any cash) and it appraised at 970k, which is what houses in our neighborhood are currently selling for.  We want to purchase our first rental property but the typical single family home in this area is about 650k, so down payments are massive. We are not sure how to generate a down payment for our first deal.  I also have about 375k in my 401k but we are not sure if borrowing from that is the best option.  We are grateful for any advice or wisdom that this community may have to offer.  Thank You!