All Forum Posts by: Nuhan Demirkan

Thanks for your input Karl. I've done wholesale and retail flips since this posting without any problems with my broker. I'm assigning contracts in wholesale deals. Can't find a title company that will do double closes. It was a bit uncomfortable explaining the assignment fee to the seller at first but figured that one out too.

Have you tried to talk to the bank that gave you the LOC? They can convert these loans to commercial mortgages to free up the LOC money. I used LOC to pay cash for purchase and rehab then converted to 30 yr fixed rate mortgage until I had 10 mortgages. I started using commercial loans after that. I still use this method to build a rental portfolio. Just make sure the properties are still cash flowing after re-fi.

how much is it going to cost you to do the cash out re-fi? and how long before you get that back based on the projected after re-fi cash flow?

I agree with Jesse T. Find the deal and partner with an experienced rehabber to pull the deal off and learn. 

I agree, if you are making $800/mo in cash flow why would you sell it? I don't know California laws but you are probably depreciating the rental property to off set your taxes, correct? When you sell the property you would still pay capital gains taxes. And why would you pay off a 3.5% fixed rate mortgage? Surely you can earn more than 3.5% with the money you would use to pay off the mortgage. As for converting the 4.65% fixed rate mortgage on the rental to 3.65% 5 yr ARM to save $200/mo does not make any sense in my opinion. Find another tax man who is familiar with real estate investing.

Good luck

Stephen, I've done sub2 but never done a contract for deed. As I understand it it is similar to a land contract where the deed stays with the seller until the contract is paid or some predetermined time in the future. Based on that I would do a sub2 to transfer the property to your name for tax purposes plus it gives you more options.

Hello Gentlemen, good to hear local voices...

sorry, landlordstation.com

I use lanlordstation.com

Gabe, my tip would be to find a mentor for either strategy.