All Forum Posts by: Matthew Vorce

@Byron Bohlsen This would be my second property. I currently own a duplex that is being rented out.

@Michael Lam

Thanks for the information. It sounds like I will be holding the money for 60 days in order to avoid needing to gift it and pay taxes on it. With regards to your 4th bullet, the reason I dont fully finance it myself is because it will be an investment non owner occupied loan so I will need 20% down. Unfortunately, I do not have 20% down for the > 300k multi families I am looking at.

I am looking to jump start my real estate investment by receiving a loan from my parents. I am looking for advice on the best way to proceed with this. Things that I am concerned about:

I want this to be a loan and not something the IRS will try to tax me on.

I have heard that if it is a gift I will be able to use the money right away for mortgages. This worries me because I do not want to be taxed on this money.

If the money sits in my bank account for 60 days, is it safe to assume I should have no problem using it for a loan?

Other issues that I have not thought of...

Example Scenario:

Loan from parents: $100,000 at 7% interest
Use loan as down payment to get a $400,000 investment mortgage on a small apartment complex

Thanks in advance for any advice!

Very good points. Thank you for the replys

Sorry for the hard to read image. If you right click the image and select "View Image" it should be easier to read.

The "Lender's Title Insurance" is listed at $750 and the "Settlement or Closing Fee" is listed at $550

Hello BP!

I am working on closing my first duplex deal in Mount Clemens Michigan. The duplex is 2 - 3/1 units with a price of just over 100k. The loan I am using is an FHA loan with 3.5% down. I received the closing cost details for my loan which is pictured below. Below are a few questions I have about the closing costs.

1. Under Section C, there is listed"Lender's Title Insurance" and "Settlement or Closing Fee". Do these fees seem reasonable or should I be shopping around for a lower price?

2. The homeowner's insurance is estimated at $100 a month. Does this seem reasonable?

3.Where do people recommend getting homeowners insurance in Michigan?

4. Under "Calculating Cash to Close" it lists "Sellers Credits" as -1735$. Are these credits due to the 3% concessions that I negotiated with the deal?

5. Anything else seem out of place with these closing costs?

Thanks!

For my first multifamily, I would like to be in the Ferndale, Royal Oak, Oak Park, Hazel Park, or the surrounding area. Ideally, this property would be in a slightly nicer area as I will be living in it. Outside of my first property, I am more open to areas such as Roseville, Mount Clemens, Pontiac or other areas a little farther away.

Hello BiggerPockets!

I am a new investor, actively looking to purchase multi-family homes in the SE Michigan area. Ideally, my first multi-family purchase would be open to FHA financing as I will be occupying one of the units. I am working working with an investment partner and we are very motivated to move on some properties. Any advice is appreciated!

Thanks!