All Forum Posts by: Pete Storseth

If you are planning on selling your rental to the tenant in a sort of wrap around mortgage scenario, are you going to be taxed for capital gains since it wasn't you living there? If so, when does it start?

@Paul Sassin

This is a deal I'm always looking for to try and tackle the numbers. I would crunch the numbers every way that you would consider, and really looking at different exit strategies as well.

If I found a rental property that I could buy seller finance, I'd be looking at cash flowing despite the sellers interest, the tenants I would be inheriting, and the property itself. What's the potential? Would it make sense if I had to sell? Would it work if I wrapped my payments to the seller into the tenants payments to me?

I haven't mastered explaining this strategy to people but wrapping seller financed deals can work, if the tenants are exceptional.

@Marquis Williams

Great plan. Also you can always put in realistic numbers for a sample property, and run the numbers a few times to make sure they look right, even post the report on BP so others can proof it.

Then you have a sample to show future investors in your goal projects.

This is what I need to do.

@Bradley Ritter

Find out why it's not performing and fix it

@Marquis Williams

Watch the webinars or youtube videos on using the bigger pockets calculator. Plug in some redfin listings and practice that way.

The one calculator I am not sure of is the BRRRR calculator.

@Rajan Udeshi

I have a wonderful investor friendly realtor in thise markets. PM me if interested

@Zack Howard

I dont know man. I went to a smaller bank with like 55 branches and the loan officer heard me say what my plan was, and I showed her how I'm going to save enough to pay off two of my credit cards, half of my student loans to reduce the monthly payments. Once I do, in 3 months I'll be able to qualify for a 140k house. Never say never.

@Ryan Evans

I believe my value is in my unrelated experience. I did door to door sales, b2b, and retail for years. My tolerance for rejection is very high. I am still pursuing conventional loans thru portfolio lenders for the house hack or just traditional rental property, but need a lender to realize I'm not trying to buy now, but once I've saved and found a partner with cash to cover.

I also may get a realtors license and work on selling houses to save even more, though that's a longer timeline.

Ideally I would find a partner to split 50/50 the profit for 100% financing, and have a mentor to coach me from crossing into dangerous deals like you mentioned.

@Ryan Evans

I dont it's over-thinking. Its creative thinking. Since I dont qualify, some would quit. I'm not going thru analysis paralysis because by simply being rejected from banks, I'm taking some action. I have to keep finding ways to get started on my goals.

Thanks for answering that refi question. I was afraid of that.

Why are wraps only for seasoned investors? I understand subject to is dancing on the due on sale clause, but seller financing a seller financed loan isnt.

I agree that a mentor, or more experienced partner would be my best blessing. How would I approach potential partners without having any experience?

@Charlie Scheiderer

I'm not am expert, but if someone knew the market was about to crash, they should know exactly what to do to capitalize on that situation.

For one, I would buy and hold because if the market crashed afterwards, more people will be renting instead of buying and the market rents would go up. And now the interest rates are pretty low, so more cash flow for a crash.

Two, when the market crashes, there are millions of people that will abandon investing, leaving the investing world with less competition.

Three, when the market crashes, if you have money from investments prior to the crash, you can use is to buy real estate dirt cheap.

Four, dont listen to people who aren't where you wanna be. I guess that includes me because I'm just starting. But I wouldn't sacrifice a dream because of someone else's fear.