All Forum Posts by: Jill Iwanski

Thank you for the information.

My question today is the life insurance premium we are contractually obligated to carry tax deductible. Long story short, as part of a land contract we have to carry life insurance equal to or greater then the amount we owe the seller. The land contract has a principle amount owed of $1.5mil. We have also borrowed $300k from this individual for another property making the total owed $1.8mil. We have a $2mil policy. As I understand the tax law we should be able to deduct the premiums because we had to buy it to honor the contract and we are not the beneficiaries of the policy. Our accountant is saying we can’t us it as a deduction. Any advise would be greatly appreciated. Thank you.

We have purchased our entire portfolio of 58 units in less then 4 years without investing a single dollar out of pocket. 1st property (4 units) we borrowed the down payment for in-laws on a 5 year note (property cash-flowed it back in 2.5 years). 2nd property (2 units) cash out refi the 1st for the down payment. 3rd property (28 units) cash out refi the 1st & 2nd tied with a land contract. 4th property (24 units) the seller carried the paper on the down payment for 5 years tied to a commercial bank loan.

My wife and I have moved into the multi-family sector in 2020. Prior to 2020 we had a quad and duplex. We started our investing career in 2016 with the purchase of a quad. Then in 2017 we purchased the duplex. In 2020 we purchased a 28 unit for $1.5 mil and a 24 unit for $1.35. We did not have a net worth even close to the loan amounts or liquidity. We spent a great deal of time putting together a presentation that we presented to the loan committee and bank board of directors. We were able to show positive cash flow while building reserves for each property. We have a mix of self managed and on-site property managers. We work with a local bank that carries the mortgages on our primary house, the quad and the duplex. The investment property mortgages are commercial loans at 4.1%. We have good to excellent credit score and slightly above average W-2 jobs. I think anything can be done if you learn to ask the right questions to the right people. We work closely with our banker and he is in the loop every step of the way. The bank is basically your partner and we treat our bank just as that, a partner.

@Toby Jurging we have used both of these strategies in the last 11 months to close multi family deals. 1st we used 100% seller financing to purchase a 28 unit. Then we used a seller carries the the down payment with commercial financing on a 24 unit. We can help you work out the details. DM if interested.

Our goal when we started in the investment property business 3 short years ago was to have 30 doors in 20 years, when we would have hit retirement age. We started by purchasing a quadplex. A year later we found a nice little duplex. Follow that a year later by putting together a deal on a 28 unit complex. Because we have we hit our 20 year goal in 3 years we were forced to up our new goals to 100 doors in 5 years for now. We have a plan in place to meet these goals. “Plan the work, work the plan”.

@David Hulit

How and where do we apply for this grant loan?