All Forum Posts by: Mark Edmunds

Hi All

We want to develop on vacant land that we believe to be $600K present fair value. Our desire is to negotiate with land owner (motivated seller but not distressed) to pay for the land in 2 years time (post design-build-flip). What would be considered a fair price given current interest rates and what other variables should also be considered. I'm thinking lease option is the way forward though unsure of how to structure and prices to pay. I'd be open to any other financial mechanisms that would secure also the land. 

Thanks for reading and extra thanks if you respond!

Thx Jon, much appreciated..... so given that it would be considered a refi, are there any benefits to wrapping into an LLC? I'm assuming that as personal grantor on loan, I will still be personal liable which negates the point of setting up an LLC, right?

How would you recommend I best release equity? Would an home equity loan be a better economic option. Apologies this is my first purchase so a bit wet behind the 'real-estate' ears  

Hi All - I would be thankful and Interested to hear your informed opinions.

I am looking to release $100K on my condo (to use for a new purchase) and am interested in the most cost efficient way to do this. I currently owe $400K at 3.5% 30 yr fixed. (29 years left)

I bought property for $525K but now value is $700K.
I already rent out 2 rooms which essentially covers mortage payments.

I'm considering the following options...

Option A -
Take out a 30 year fixed home equity loan (I assume a couple of percent points above current mortgage rates)

Option B -

Start an AMC LLC.
AMC LLC apply for 30 year mortgage from Bank. (guestimating 4.5% )
Sell Condo from myself to AMC LLC.

I'm thinking that Option B be a more cost-effective way to

a) release equity
b) write off all costs associated with renting out the condo. (Mortage Tax, Maintenance, Asset Depreciation, Maintenance Tax, Property Tax)

Note: If I executed Option B I would not live in the condo myself (i.e rent out the third room) but rent the third bedroom.

Am I missing anytihng important with option B? Is it less clear cut as to which option would be better. Are there more risks with one option than the other?

Thanks for your time and expertise.