All Forum Posts by: Seth Williams

@Ned Carey is right, tie it up with an offer and get it under agreement. That being said, I might suggest otherwise than Ned as far as getting an agent. If you have found the property, and know the numbers work, you've already found your property, the listing agent can help you submit an offer if thats allowed in your state ( dual agency isn't allowed in some ) and you may get it 1-2-3 % cheaper. The listing contract she or he has with the actual seller probably locks it in at a 4-6 % commission, and if you go through her directly she or he is going to try and keep both sides of the comish, or you could discuss this with the listing agent and shave 2-3 %. Depends on how it goes and id need to know more. You may have to put 1000 down to bind the offer, and potentially more at P&S, but all this comes back to you at closing since your going VA. Ive structured VA offers like this in the past, but its going to depend on the agent(S) you use. If you need a lender, talk to @Upen Patel, he's licensed in every state! 

Good luck! 

No problem @Ayodeji Kuponiyi I guess really the only way to cut this corner would be trying to shift your focus to owner financed properties. Typically, this allows a seller to still recoup passive income by holding paper on the transaction, but usually wants $ down, sometimes less than conventionally obviously because they will be getting their eventual selling price, plus interest etc. I did this recently with a 3 fam property, where I only put down 8%, allowing me to buy more property than I had previously with less $ than I needed conventional. a little bit of a harder search, but more rewarding for sure. Id look into it more, and PM me if you have questions. Typically, this is a sellers price, your terms deal. Look into it, and Good luck!

@Dave Foster Shoot me a PM, Im brokering a few deals where we need a solid 1031 guy. 

Oh yeah, I can't read. 

Originally posted by @Upen Patel:

Hey! @Seth Williams thanks for the tag.

@Ayodeji Kuponiyi Apartment loans are commercial loans, so you are not going to be able to get a low down payment option. But you could do a 1031 exchange to avoid capital gains, which should provide the needed boost to make the needed down payment. I would recommend you connect with @Dave Foster (a 1031 expert) and @Brandon Hall (REI Accountant). They should be able to help with structuring the move to minimize your capital gains bill.

 Maybe I'm off here - But if he does move into the duplex he could save some of the cash, but might make the 1031 harry. If you wanted to use the cash after thats left, you could, but would need 20-25% down commercial.. Right? 

Should be pretty easy, are you moving into the Duplex? If not your going to have to put down the 20-25%. If its primary residence you should be able to do FHA or low money down conventional. Be careful on the capital gains though, you might want to talk to your RE ATTY about a 1031 like kind exchange if it has been an investment. Ill tag @Upen Patel as a lender through the US to talk to you about these programs. Hope that helps, and congrats!

Been starting the research up there myself - commenting because I'm interested in the answers! I wouldn't worry about the landlord friendly states or not, I think great tenants is the recipe there, and great upkeep from the owner or prop manager. Albany is a complete dump, but getting re-vitalized they say and a new casino could raise prop values. Buffalo is on the way up for sure, but things aren't that cheap anymore. 

Depending on units you should be able to figure out what the property could be worth using rate, but you would still need cap rate estimates or comps to know the area cap rate, or pick your own cap rate. Would need more info the discuss.

Lol @Daniel Hanson - good call. Typically, I don't see this adding much to an appraisal worth talking about, its normal maintenance. Same as putting a new roof on wouldn't "improve the value". Just my take. 

ohhh I see what your saying, very familiar with "residential vs commercial" and whats considered. Typically, its going to be calculated on a few things... #1 could be Cap rate - which is essentially NOI vs. Value or Purchase Price, 2nd could be DSCR - Or Debt service coverage ratio, basically just rents vs. debt service. 3rd could be rebuild cost and so on. Typically, a factor of Cap rate on bigger buildings or DSCR is the way appraisers look at it. If the DSCR is over 1.25 % then you are usually good and the deal will get financed as a stand alone asset, with you as the personal guarantee. @Anthony Lapolla, where you at?

You keep using the word Residing, Meaning you will live in this new property? A lot of the times banks don't want that its not going to matter if its primary residence and will lower cap rate and DSCR because you are losing unit rent. Make sense?

Example DSCR - 2000 in rent, 1000 in debt service = 1.5 DSCR