All Forum Posts by: William Sumnicht

$50 here; pretty common in my area.

@Jeff B. Ok, I've never done a sub to, and I'm ignorant here.

Everything I can remember reading about it implies or refers to a title change. See Dave Van Horn's and Milton B. Yates' BP articles.

Dave's article references the title company and title insurance, and Milton's article explains title transferring hands in the first paragraph as one of the steps in Sub To purchasing.

What am I missing here?

@Dave Foster Thanks for your feedback!

Isn't that the idea of a sub 2, to take title to the property subject to the existing mortgage?

@Dave Foster

Awesome!

From what you're saying, I'm reading that if the underwriters of the mortgage determine that the partner would not have been able to put the downpayment on the table without my contribution, that they'd be more likely to call the due on sale. Do I have that right?

Along a similar line of thinking, could this work without a partner, but with a sub-to (where it would otherwise be sold only for what remains on the mortgage), add cash on top of the remaining loan, and rather than the seller lowering the price, kick back a check for repairs?

Also sounds a little too good to be true, but again, sure be cool if it wasn't.

Hi all,

I have this combo-strategy dreamt up, and I'm curious if anyone (especially tax or 1031 experts) has insights or opinions as to whether or not the IRS would drop kick this right out as taxable boot in a 1031.

*Disclaimer* I solemnly swear not to rely on posts made on BP for legal advice. Moving on...

There are a few strategies at play here:

• Using a standard, forward 1031 exchange.
• Buying properties that need work (BRRR with or without the refi, utilized to achieve a higher return).
• Partnering with someone who can get a loan when you can't (to bring deals into grasp that were previously out of grasp).

The question is, can we combine the 3? Say I sell a property all cash within a normal (non-improvement) 1031x. Here's the thought process: 

• I find the replacement property deal
• Partner puts the property under contract
• Identify 1/2 of that property as the replacement property (via tenants in common)
• Double close. I pay partner my entire cash basis of the relinquished property for 1/2 ownership in this replacement property, with an agreement in the contract that I run the rehab, and that the partner is restricted to using the money for closing costs, downpayment on mortgage, writing rehab checks (I would receive no payment), and just to make it interesting, funding cap ex and rehab accounts.

It sounds a little too good to be true, but it'd sure be cool if it isn't.

@William Robison Just busting your chops. I think this is a fantastic idea! And I have high hopes. They don't call the Wednesday home games WINSdays for nothing.

@Bill Gulley Keep that passion alive!

@William Robison We really should have chatted first. My band just played a Wednesday Royals game last month.

@Karen Williams I am not very familiar with expired listings. Do you mind sharing the reason for not asking a realtor? If one provided a website, would they feel you are indebted to buy through them?

@Ognen Borissov What a great list!

@Ognen Borissov You know, I've been warned to stay away from considering KCK for years. But on the flip side, I know people that own dozens of properties in the area and have amazing success. Seems like it takes practice, perseverance, and extra attention. With the right changes, I have full faith that you can turn that puppy around. Sure would be nice if you could get a fantastic PM company, as @William Robison suggested, and start working with them while you're there turning the place around. Might be a good opportunity to train each other.