All Forum Posts by: Alex Olson

@Elizabeth Palma Do what you have time for and do what generates business. If you don't have any prospects under contract and are needing buyers and sellers, you have time. If you are full of buyers and sellers, then you need to pick what works and stick with it. It IS that simple. 

@Jeffery P. Might be hard to pull off. Factors that may help - sold off market, showing rental history of the purchase before and after, if you have a history of buying long term rentals. Other than that @Dave Foster can hop in here and give his opinion. 

@Andrew Perkins Caleb is right, if you can put 10% down and use it as a second home or similar that would be great. However, with a 1031 exchange it has to be used for investment purposes. Hope that helps

@Kyle Hoppman Not sure if you are using an agent on this but the 1031 exchange should have nothing to do with you as the buyer. Typically, language like this is placed on the contract to help pass an IRS sniff test. You, as the buyer, will not be responsible for any cost to the 1031 exchange as well. Unless, they are asking you to pay for the QI (qualified intermediary) fees which would be very rare. On a positive note, those fees are only a few thousand dollars or less so even if they are forcing a buyer to pay this fee, it should not be a deal breaker depending on the duplex condition and price. 

@Daniel Amram I am not sure what market you are in but how we handle both downleg (property you are selling) and your potential upleg is through contract negotiations. You would need an agent that is willing to work with you and stick with you regarding both downleg and upleg. You can add a clause in the contract that seller has right to extend 30 days, 1 time, without penalty to the buyer or the seller. This will give you some extra time. Then, for proof of funds, you will most likely use a commercial lender to get pre approved for your next purchase. You should do this now or at the point that your downleg property is under contract. It would be difficult, rare, and frankly not a practice I would help with, for you to place your downleg under contract and your upleg under contract before your downleg is past due diligence period and the buyer's money is hard. I am happy to chat through this further if you would like. 

BJ Craig or Casey Crawford are excellent resources. 

@George Nicely The loans you are after have very strict requirements and will most likely tell you the same thing. You could try First National Bank of Omaha as I have seen them be lenient on some of the rules for secondary market loans (fannie mae freddi mac which are 30 year fixed rate loans). However, though the fixed rate is really nice, you are not saving much money, if any. Fees are so much higher with these types of loans that you need to look at the APY vs the APR and compare to a commercial lender. Hope that helps!

Hi Scott - could look at community America credit union. They will lend 100%. Let me know how I can help. 

@Dave Foster is right. However, TIC (tenants in common) is very...er...common. Find an attorney/cpa that can figure it out for you guys.

Great work! Congrats on correctly using a 1031 Exchange!