All Forum Posts by: Mark Krier

Does anyone remember which podcast episode had the guy who was talking about how he built his portfolio using some sort of "program" he created to offer to retiring landlords which enabled them to collect a steady cash flow and defer taxes out? It was obviously some sort of seller-financing strategy, but it sounded like he had a great way of arranging the deal and had a great way of explaining it to sellers. The way he arranged it might have even included some other mechanisms but I can't remember (life insurance, ira, annuity?)... 

I have a older landlord (70+) who owns a bunch of property free and clear, and would be happy to sell the property if she can guarantee herself a steady monthly income for the rest of her life.. She's also very concerned about taxes, not because she can't afford to pay them, but she just really hates the idea of paying a bunch of taxes... Anyone remember which podcast episode this was? Or have any other ideas to share? @Joshua Dorkin @Mindy Jensen?  

Hi Pete, 

Some of the lowest vacancy rates in the country with an very affordable housing market makes Grand Rapids a very strong market for cashflow investing. Inventory is very low though, so it's not like quite like shooting fish in a barrel (like it was a few years ago).  For example, you can find stable duplexes in C areas that rent at $600-$800/unit for low to mid 100's, or $800-$900/unit for mid to high $100's.  Some quadplexes around too. Beyond 2-4 unit properties it gets a little more competitive with limited inventory, mostly traded off-market. Are you looking at 2-4 unit properties, or larger than that?

@Jay Hinrichs The first reply mentioned she was from our city and that set off my keyword alert, I assume same thing with Paul. The alert caught my eye too because I just had someone ask me about $15M+ sales the other day, which resulted in me digging around on the topic. What I found was that there are rarely ever sales in Midwest, not even Chicago, at $15M (0 last year in Chicago). Even in NY and Cali it looks like there are only a few per year above $10M. Point is, I don't think a $30M spec house in Arizona is likely to fly off the market. Would love to get that listing though!

I would say he's out of his mind, although I'd probably say it in more polite words than that to him. There are only a handful of single family residential sales in that price range per year, anywhere in the United States. Check out the most expensive active listings currently in one of the most expensive real estate markets in the US (San Francisco):
https://sf.curbed.com/maps/sf-most-expensive-homes-for-sale

Hi Jamira, which event are you going to?

@Isaiah Burnside - Welcome to GR! 

@Peter VanWesep - Sorry I missed this one, was out of town. Looking forward to the next one. 

@Charles Kao - Hey Charles, I just requested membership to your Facebook group. I'm glad someone finally set one of these up. I've been meaning to for awhile. 

Thanks Peter. I love Rez and would love to hang out, but unfortunately I'll be in Chicago this holiday season. I'm looking forward to connecting next time you're in!

It was a great meetup indeed. Thanks for putting it together.

Other ideas for financing: Maybe he would seller finance the deals for you. There's obvious benefits for you there, and also benefits for him (delayed tax realizations, continued cash flow, etc). Also, you should be able to get commercial financing with a fixed rate. It's not common, but with a good enough relationship with a bank they do offer it (higher rate of course). Lastly, you could partner with someone willing to fund the deal for you. You'll probably just need to put together a nice proposal/plan for these deals and shop it around at the local banks/credit unions.

I was disappointed I missed this. Who all was there? Is there enough people/interest to set something up like this again?