All Forum Posts by: Nathan Grabau

Very happy with the Sams Club Hotel Collection, not expensive either.

Yes, credit does matter here. A lender will look at your credit history and factor that into your risk profile, which will impact things like your max loan to value, interest rate, and whether or not they lend to you. Some lenders actually have grid style sheets where they should how your credit score impacts your terms. 

I would definitely recommend buying a new primary over a new investment if you are okay with moving! You will not only have to put less money down, but you will also get a better rate. 

Personally, I would consider trying to leverage the 400k in your current home more aggressively, and do some type of financing transaction like a cash out refi. There is no real value in not having debt, assuming it is leveraged against an asset and its monthly payment is paid by others. 

You should be able to cash out 100k of your current home, on a 30 year note without increasing your mortgage. I personally operate at a leverage ratio in the 70's, so I have about 70k in debt for every 100k in assets I own, but also understand that you might not want to leverage yourself that aggressively. 

If you 1031 you have to redeploy 100% of the proceeds and keep the same amount of debt. You are allowed to do a cash out refi as soon as you are legally allowed(12 months now for conforming) to get cash out of the deal. 

Your return on equity here feels low. It is likely you could have a better return on your money if you redeployed through a 1031. Back of the envelope math says you should probably at least have 600k in equity after closing costs/ REALTOR fees, so to only be spinning off 21k a year here, without any maintenance/ vacancy/ capex/ flood costs/ risks included is a 3% cash on equity return. (before appreciation/ loan paydown).

You should be able to outperform that in a appreciation market pretty easy, and blow that out of the water(Cash on Cash) in a cash flow market. 

I am happy to run numbers on what I think you could get with that kind of investment in CO or can connect you with the reatlor/ pm I use in Ames, Iowa(where ISU is) that I cannot recommend enough. Happy to help in any other ways you think could be useful!

I would generally say that the view being interrupted by another row of houses is easy to find before going under contract and would not constitute due diligence. 

Is the agent that is telling you you can't back out also the listing agent, or do you have your own agent? It is very important that if it is the listing agent, you are selective with how you interact with them. 

In Colorado, someone who did not waive the inspection termination deadline would be allowed to terminate the contract over the flooring issue. We allow buyers to request that something is fixed or they can terminate the contract. 

LLC to LLC transfers are relatively simple, but could trigger the due on sale (highly unlikely). Generally speaking, if you want to put them in a trust, this does not start to make sense until you have over 1m in equity.

Most likely what you are protecting yourself from here is lawsuits, as you will likely have to personally guarantee the loans you have. All of the properties I own in LLCs, with the debt in the LLC's name, have personal guarantees, and in addition are guaranteed by any holding companies they are respectively in.

With FHA loans, you will hold PMI forever/ until you refi into a conventional at sub 80 LTV. With conventional PMI drops automatically after 78%.

You also can have PMI drop sooner if you are willing to pay for an appraisal and the new value gets the loan below 80% LTV(with a conventional loan, does not apply to FHA).

I would pull the permits. You are going to have issues if/ when you sell the property with it not being permitted, and it will likely cost you a lot more than 7k.

You enter into a contract to buy it, but say the contract is transferable(either check box or additional provisions, depending on the contract you are using). I personally would encourage people to be honest with buyers about this. You still are doing a service, you are finding them someone who will buy the property for the price you have negotiated. Pay earnest money, so you have essentially locked in the seller. You then enter into a deal that when the contracted is successfully closed, you get x dollars as a assignment/ finders fee. You transfer the contract to buy to the person who is going to actually buy the property. At the close, you get paid. 

I would not bring partners in that you do not trust. If you cannot trust that they won't steal it from you, you can't trust that they, for example, will have the funds to close or not back out at the last minute and blow up the deal. 

With larger deals, people tend to put the deal under contract, then get it funded with a pool of people they have that are looking for deals like the one they found.