All Forum Posts by: Sam Horton

@Justin Lee Taylor Where are you out of?

@Connor Deneen if the seller has 100% equity you could approach with a seller financing option, assuming they don't need the proceeds from the sale. Also could attempt a lease to own option perhaps? Although that could get complicated since it as multiple units involved.

@Carly M. Additionally, Plymouth is the largest town in the State geographically so that would certainly impact the below average metric.

Have you been reading about the new Massachusetts "Airbnb" laws? They are adding additional taxes to properties rented under 30 days. Worth looking into if you are exploring short term versus long term.

@Shronda Sledge Is this property in a rural area that is making it tough to comp or a unique structure to the market? Typically I will continue to expand my search until I find comparables similar to the property. If comps are located in other markets I will use value adjustments/explanation to verify distance expanded or justify outliers in specs. 

The only thing I would worry with 5 or 6 banks is your credit score at that point, if each bank is doing a hard pull on your credit then that could affect your score. I've been told if you send out the app's in the same week it should count as one pull against credit. You can always ask that they do a soft pull instead of a hard pull as well. My only other question would be are speaking with direct lenders or loan officers? Depending on who you ask there are benefits to both types.

Not a CPA but my understanding is: LLC's reduce the liability an investor has. Another is for tax purposes if they are doing a lot of business a good CPA might roll the LLC into an S-Corp to help with the self-employment tax at year-end.

@Wayne Brooks Interesting, I did not know interest was taxed so high. Thank you for the advice. 

@Brie Schmidt is correct about the IRS gift and down payment required from lenders. It sounds like a lot of work for you and he is just looking for an easier transaction. He could always apply for a bridge loan which would have higher interest rates, that would allow him to carry both while he closes. Or just do it like most home transactions and just close both properties on the same day.

@Alexandra Courtney I would say if you are comfortable with your capital situation then buy and hold. If you need to build up some more capital and or reserves for other hold properties then look for a flip.

@Wayne Brooks I was thinking the higher interest would essentially work as income for the seller. With a lower buy-in price, they would have less cap gains.