All Forum Posts by: Jesse Baker

Friends and business is fine when it’s backed by  real estate. I’m sure they’ll default and I’ll have to foreclose anyways. But I’d like to give them a chance. 

His last statement said total payoff was 65k. Total cost to pay off the mortgage is now 100k. Chances of them paying is 50/50.  

I noticed a foreclosure notice of an old family friend. I’d like to help them without taking their house. The have 400k of equity but can’t pay their bills. The buyout is 100k form the mortgage servicer and auction dates next week.. I could buy the property but I don’t want it.  I’d like to keep their name on the property and have them make payments over the next 5-6 years and have my interest secured by the property. Any advice would be appreciated on how to navigate this.  

Thank for the quick reply! The first Lien Heloc is a good idea! 

Here’s some numbers!

Property #1 Townhome  value 550k cash flow $2.6k per month 

Property #2 Townhome  value 350k cash flow $2k per month 

Property #3 Townhome value 400k cash flow $1900 per month 

Property #4 single family value 600k  $2200 cash flow per month. 

Property #5 single family value 1.1 mil cash flow $4500 per month.  

I'm mainly looking to have backup cash and get loans based on cash flow from the properties to purchase a multi unit. I have cash for purchase with or without the properties equity. I'd like to lower my income by purchasing the properties in my LLC from my family and doing some kind of owner financing to possibly reduce yearly taxes and capital gains later down the road.

Hello Forum, 

This is my first post and have been listening to the podcast for a few months.  Seems like this would the place for some advice! 
 
I manage 5 family rental properties in the Northern VA area. My wife owns 3 and my mother in law owns the other 2. All properties are paid off and have tenants. We were thinking about buying more rentals with the equity or just rental income from the properties. Not sure what the best option is for my situation but here are my options that I can think of.

1. Sell the properties to my LLC, owner financed and then take the rental income from the properties to buy more.

2. Refinance the properties to fund new investment properties. 

We don’t really need the money and could fund deals, but more money at low rates never hurts and the owner financing write offs might benefit my family in taxes yearly or down the road.  What would you do? I’d love any suggestions.