All Forum Posts by: Snehanshu Ashar

OK, this kept bothering me so I dug up the disclosures from Docusign.

Redfin's refund addendum says the following, so I don't see anything illegal with this.

In this transaction, the Buyer would like to utilize up to $______________ of the rebate
at the closing for lender allowable loan and settlement costs, pre-paids, loan discounts,
interest buy-down and/or financing and closing costs. Any amount of the rebate not
utilized for the above items will be rebated to the Buyer within a commercially reasonable
time after Redfin receives its commission related to the transaction.

Yeah, I hear you on the service side of things. But, like you mentioned, missing out on cash-back on new construction doesn't make sense to me. I had that happen to me on my first home: the agent never wanted to show me new construction, so I found one myself and bought it. Then the agent told me she would have passed on some of the commission if I had mentioned her during my initial visit. I never met with that agent again for my future purchases.

Redfin spoiled me in all my future buy transactions with their rebates and wonderful service. I find it hard to believe yet that it is not legal. I think they disclose it somewhere in the documents and lenders are OK with that. My buy transactions were a while ago, so I don't have the time now to dig up what exactly how they did it.

Here's my perspective: If there are agents who value my hard work in identifying properties and reward me for that (either buying new construction or through something like roofstock), then I get some well-deserved rebate for "my" hard work in searching for the right properties. 

But yes, trusting a random agent (Redfin rebates have gone down now, so no more redfin) to pay cash bask after closing seems too risky and not a good idea for 1031. I guess if I do end up using one, I'd rather have those rebates apply at closing to increase my buying power.

So this agent is advertising mortgage fraud?

https://www.texashomes2percent...

“The rebate can be applied towards closing costs at the closing table or, it can be given in cash after closing on any new home, anywhere in Texas! “

@Russell Brazil

Are there different laws in different states or mortgage companies?

I think have used both options (part of closing and check) with Redfin rebates for various transactions. Agents list these options too on their websites.

Hello all.

I have some 1031 replacement property transaction questions:

• For my replacement property, can I work with a buyer agent who offers me rebate from their commission?
• Can this rebate be in to form of a check after closing? i.e. not part of the 1031 closing statement, so that I can get some cash to use, without it being considered boot?

Thank you @Wayne Brooks and @Dave Foster

On a related topic, can you please suggest:

• Where to look turnkey 1031 investment options with good rental income returns in the $4 mil range (with 1, 2 or 3 large investments)? https://www.biggerpockets.com/...
• Where to look for mortgage options for such investments?

@Anton Ivanov

Thank you so much for your posts!

I came across these while exploring my 1031 exchange options and thought of exploring apartments and multi-dwelling units after reading that small future plan item you had mentioned :)

I posted this question on the main thread, and here's the recap. Would appreciate if you could share any thoughts you have on this.

https://www.biggerpockets.com/...

I am selling my rental property with a 300,000 mortgage, and expecting to sell it in the range of 1,000,000, i.e. 30% LTV (simplified numbers with similar ratio).

I am planning to reinvest in with 1031 exchange and have a bunch of questions on that. This post is about alternatives to SFR turnkey investments.

I have only self-managed a couple of SFO Bay Area SFR rentals, and looking to explore alternatives after my 1031 exchange of one of those properties.

I have looked at a few turnkey or rental SFR investment sites such as roofstock (not sure if they are turnkey or just facilitate investments by providing rental estimates and guarantees based on as-is properties), doorvest, renttoretirement, and turnkeyinvestproperties.

Are there popular and/or convenient options to look for, buy and manage larger complexes (apartments, commercial etc.) similar to the above list of options for SFRs? I posted another question about leverage. Assuming that I can increase the leverage in my 1031 exchange, I want to explore options of one or two large purchase(s) with similar returns instead of buying 5 to 10 SFRs, but have no idea where to look for those, and how to analyze the deals and management.

Hi all, I am a newbee on this forum, hoping to get some guidance on my upcoming 1031 exchange.

Scenario:

I am selling my rental property with a 300,000 mortgage, and expecting to sell it in the range of 1,000,000, i.e. 30% LTV (simplified numbers with similar ratio).

I am planning to reinvest in with 1031 exchange and have a bunch of questions on that. This post is about alternatives to SFR turnkey investments.

I have only self-managed a couple of SFO Bay Area SFR rentals, and looking to explore alternatives after my 1031 exchange of one of those properties.

I have looked at a few turnkey or rental SFR investment sites such as roofstock (not sure if they are turnkey or just facilitate investments by providing rental estimates and guarantees based on as-is properties), doorvest, renttoretirement, and turnkeyinvestproperties.

Are there popular and/or convenient options to look for, buy and manage larger complexes (apartments, commercial etc.) similar to the above list of options for SFRs? I posted another question about leverage. Assuming that I can increase the leverage in my 1031 exchange, I want to explore options of one or two large purchase(s) with similar returns instead of buying 5 to 10 SFRs, but have no idea where to look for those, and how to analyze the deals and management.

Hi all, I am a newbee on this forum, hoping to get some guidance on my upcoming 1031 exchange.

Scenario:

I am selling my rental property with a 300,000 mortgage, and expecting to sell it in the range of 1,000,000, i.e. 30% LTV.

I am planning to reinvest in with 1031 exchange and have a bunch of questions on that. This post is about leverage.

I read mentions of some 200% rule in identifying replacement properties, which kind of implies I can identify properties up to $2,000,000.

So, my question is: Can I increase the leverage (LTV ratio) in a 1031 exchange?

i.e. In my scenario, can I use the $700,000 cash from the proceeds as a 20% downpayment to buy replacement properties worth $3,500,000?

If 200% rule limits this, then can I buy replacement properties worth $2,000,000, with a mortgage of $1,600,000 i.e. 80% LTV ratio?

Or is it the case that I have to maintain the exact LTV ratio? i.e. buy with $700K cash and 390K mortgage?