All Forum Posts by: Phil G.

@Robert Cook

The program is administered by the Park Service.  You must pass the "Substantial Rehabilitation Test".  Simply put, you must spend more on allowable rehab expenses than the basis of the building.  Basically, you'd need to spend more than the cost of the building - cost of the land in allowable rehab expenses.   You have to go through an application process with the Parks Service.  I, like most developers hired a consultant who specializes in this process.  The work must be up to the standards of the Park Service.

It's normally used by developers on larger projects to use as a portion of the equity in the project.  There's a marketplace to sell the tax credits at a discount, providing capital to your project.  The building must stay income producing for 5 years -- the tax credits are taken over a five year period.  

On larger projects being on the National Register makes possible participation in the 20% Federal historic preservation tax credits and possible Massachusetts tax credits.  This project won't be big enough.  Some cities have tax incentives for historic preservation.  Worcester has some loan programs, I think.   There is a preservationworcester.org site that lists the programs.

All the Fannie Mae addenda I've signed allow for the inspection and return of EMD if you provide written notice. I never ask for inspections in any offer. There's usually a clause like this:

EFFECT OF ADDENDUM: THIS ADDENDUM AMENDS AND SUPPLEMENTS THE CONTRACT AND, IF APPLICABLE, ESCROW INSTRUCTIONS. IN THE EVENT THERE IS ANY CONFLICT BETWEEN THIS ADDENDUM AND THE CONTRACT OR ESCROW INSTRUCTIONS OR NOTICE OR OTHER DOCUMENTS ATTACHED AND MADE A PART OF THE AGREEMENT, THE TERMS OF THIS ADDENDUM TAKE PRECEDENCE AND SHALL PREVAIL EXCEPT AS OTHERWISE PROVIDED BY LAW.

Life is short.  Do what you love.  

In most states, it is unlawful for a broker to pay a commission to an unlicensed person.  Unlicensed assistants are usually restricted to performing clerical type activities.

There is an RD multifamily loan guarantee program, but it's a very different animal from the guaranteed single family or single family direct loan programs.

http://www.rd.usda.gov/programs-services/multi-fam...

10% down for low/moderate income renters.  It's a competitive funding program, so you can wait years for available funds.

Not a lawyer, but I do flips in both NH and MA. You will need to file the LLC in MA as a foreign LLC and pay for the formation, annual report fees and registered agent for MA. NH does not recognize pass-through entities, so you may be on the hook for Business Profit Tax (BPT) and/or Business Enterprise Tax (BET), depending on your individual circumstances.

NACA.com offers 0% down, no closing cost, no PMI loans on 1-4 families. The max mortgage amount available varies by location and is often less than FHA max. Their website allows you to enter a zip code and see if they serve the area and the max mortgage amount. They have a buy down program that allows you to buy down the interest rate to 0%.

I've had a couple of flips purchased by buyers with the program and a couple of friends who I represented in home purchases used the program.

If you're looking to wholesale it, I'd steer clear of it.  It's one thing if you're buying a personal residence and you love the house and are willing to deal with the challenges, but as a wholesale property...

I've used them for CE and I will use them again this year.