All Forum Posts by: Mike L.

@Hai G.

Hi Hai,

Property tax appraisers typically aren’t great at knowing current pricing and, dallas has been changing so fast, especially in emerging markets. There was a deal I was brokering where the tax assessment was $1m, but the property was selling for $6M.

We never show a listing price on properties for our clients so that appraisers won’t have a clue. We also make sure title companies and banks we work with don’t report pricing so that taxes remain at their current levels.

Mike

@Phil Dodd

Hi Phil!

I know your lot. How much do you want for it?

Thank you,

Mike

@Meaghan Simonich

Hi! If I knew more specifically what you were wanting to do, I could probably give better insight. That said:

In general, owning commercial property can be much less painful and less hands on than dealing with residential tenants. Your tenants are typically going to be more experienced and professional. Plus, often times the tenant is paying taxes, insurance, and maintenance. If you have a good tenant, it’s close to just collecting checks. There are a lot less potential tenants for a commercial building than for a residential property, so they can be harder to rent. Also, financing terms are less favorable than residential terms. Amortization schedules are almost always 25 years or less.

During covid, pain points are, tenants can’t pay because they can’t be open or are limited. However, good banks are being flexible and allowing deferred payments.

Mike

@Mike Price

So are you saying there is no way for us to get into a 30 year note situation?

Mike

@Mike L.

Why yes, Mike. Here is some good info

https://www.carcovidupdates.org/relief-faq-for-agents

Seems like 1099 independent contractors will just fill out the same application as the small businesses. And under payroll, will just average their 2019 monthly x2.5, excluding anything over $100k annualized. So the max monthly would be $8,333.33= max application $20,833.32

Any disagreements? Thoughts?

Mike

Hi,

I haven’t gotten very clear direction from anyone (I’ve talked to a local bank and a mortgage broker).

I own a Sf house with three other partners in an LLC. We originally bought the house 2 years ago. Because we didn't have much credibility, we got a 20 year schedule with a 5 year term and around a 6% rate. We obviously need to refinance, but I want to do it the smartest possible way.

I'm told you can get a Fannie or Freddie loan if you are an LLC. I'm told we could switch the deed to one of the members of the LLC, qualify for a 30 year note, close on the refi, then immediately sign the deed back into the LLC. Is this really the way to do it? The mortgage broker said it could "trigger" a pay on sale clause but it "shouldn't " happen. Didn't seem very reassuring.

Related but separate: how do you get 30 year fixed notes on investment properties from the beginning? If I wanted to buy a 20 unit apartment complex?

Thank you,

Mike

Hi everyone,

I’ve had the hardest time figuring out if 1099 independent contractors working as real estate agents qualify to get money from the government under the disaster sba forgivable loans. It seems that we do, but does anyone have any clear direction?

Thank you,

Mike

@Grant Doyle

I had this happen once myself. I was going out to a property on a lake I was interested in purchasing. I’m in commercial real estate so since I am licensed I wanted to represent myself, but my company doesn’t really use the mls. So I was finding my leads through Zillow. I clicked on what I thought was the listing agents number and set up a tour. I showed up a little early and there was an agent (not the one I had contacted) there. Her name was familiar, so I looked back on Zillow and realized she was actually the listing agent. The other agent that I had contacted was texting me that she was still driving there, so I put together what had happened. I figured I made a mistake and clicked the wrong person to call on the app. I owned it and basically said to myself, if I buy it, I’ll throw this person a bone that I made drive 30 minutes to show me a house. I didn’t end up buying the house so it didn’t really matter. At the end of the day, poor communication all the way around. She should have asked me more questions, which would have flushed out the fact that I was representing myself, or I should have been more intentional with my position. I’d guess that your parents just clicked the wrong agent to call thinking it was the listing agent. The agent that showed up might have figured out what had happened and was just trying to squeeze in the deal by spending time on it. My 2 cents

@Dennis M.

I like it. Good thought

Hi all,

A group of us just bought some raw land in an up and coming area of Dallas. The land has very good/liberal zoning that will allow for a variety of uses. Our plan is to hold the land while the area improves as it is not ready for development (at least not ready for a development that would maximize the zoning, which in turn would bring us the highest price from a developer).

My question is: Are there any strategies you have thought of or have heard about that would help us cover our carry costs (taxes,mowing)? Obviously the goal would be to make it as low cost and low impact as possible in the interim.

Land size is 19,000 sqft. Very urban area. Taxes are $12,000 a year.

Thank you