All Forum Posts by: Jeffrey Holst

@Sorin Ciobanu try not to use all caps, that being said if you can get a lower rate and the fees aren't bad and the payment stays the same or decreases then you should do it assuming you plan to keep the properties however your current rates seem decent so I wouldn't stress on this too much.

@Shivam Kashan I'd be careful with relying on a tiny amount of mortgage pay down and possible appreciation on a deal that really only cashflows 70/month. This sounds like a flip deal to me. Even if you don't end up making a lot tying up a hundred grand to make 70/month is a big risk. If the market goes south even a couple percentage points you will lose all your cash flow for several years. Flip and start working in the next deal.

@Rick Thompson in general the reason to use Heloc and pay cash is to get a better deal by removing financing contingency and being able to close quickly. I would do this if it meant saving enough on purchase price to justify the seasoning period, the interest rate risk, and I still had adequate reserves to cover costs and expenses. However if you aren't able to see real savings on our has price then you should finance it and use Heloc for down payment only.

@Vina Real great keep it up

Mid July update. So far 2018 has been good to me. I have formed a new partnership and we are progressing towards our first deal. I closed my biggest (yet)transaction as a realtor. My primary partner and I closed on our largest apartment building to date a 32 unit. We did so using a 1031 and were able to consolidate several Detroit single families in to a very nice building. We have been able to raise rents by an average exceeding $100 a door in our 12 and 19 unit buildings and anticipate even higher average in the 32 unit. I am working on a class A office building deal. As far as my stated goals Posting is going well I am easily exceeding 10/ month, I am up to podcast 170 and should be able to finish them all this year. We used the Roth money to lend instead of buy (slight change there but it's deployed at a great rate with a safe borrower) the only real point of failure is I still have not acquired individual property but the year is only middle age. Hope everyone else is likewise crushing their goals.

@Greg W. Dont wait get working on this now. Do whatever you can tied get him to sign the extension or at least get a written statement from him saying he agrees like email or text. Might help you when he doesn't sign and tries to foreclose. In the meantime talk to as many lenders as you can and try to get a refi going. There no way you are getting out of this contract and getting you down payment back. You might be able to convince seller to let you out for even or something but if you still like the property and want to hold on you need to get alternative financing in place because this seller seems unlikely to actually grant the extension.

@Dave Foster is correct these exchanges are just not that hard. We have taken the strategy of starting to look for replacement Properties as soon as we decide to sell the relinquished property and we have never gotten burned badly. On our first exchange we didn't do that and end up with a not so great deal. The key point is if you work the process the exchange can be super powerful. As a side note out if an abundance of caution we try when possible to identify a back up using a dst just in case it all goes wrong. We are also always willing to walk away and pay the taxes if the new property has a glaring defect that will cost more than the tax issue at hand. (We haven't had to use either of these back up plans though)

I might try to pop in, in advance of our regular meet up which starts at 5pm but no promises

Welcome to Chattanooga hope we cross paths sometime

I agree its hard to maintain disciplinary but we dont have a choice unless we want to die if and when a crash comes.  Its unlikely in my estimation that a crash will come in next 1-2 years and when we do see a drop it will likely be far less bad than the last but still if it doesnt cash flow out of the gate dont buy it