All Forum Posts by: Steve Morris

Taxes should be a deciding factor, but NOT the driving factor.  If the property offers a good return on funds or not should be your lead metric.

As a broker, I've dealt with too many people that bought a stinky 1031 just to avoid taxes.  So do think it through.

Well friend, appraisals count - Whether they're "good" or "bad" since the lender uses them to decide if/how much to lend.

Any buyer should have a "must meet or beat appraisal" clause in ANY offer and lenders have the same in their contracts almost 100%

Talk to an account.  CapGains (selling something for more than you paid) is different from ordinary income (your paycheck).

Well, I would not give a hard money guy ANY recourse (or collateral or a lien) on ANYTHING besides the property they''re lending on no matter how much they like it.

Hard money guys have two main decision metrics:

1) 100% servicing of the loan AND

2) If they take the prop back or force you to default will the asset cover the debt

"Any recommendations?"

They're all pretty much the same and same material.  Cheapest online one you can find CERTIFIED as an hours proivder by your state.

Being an auto-didact in the future will help you out.

I’m tired of hearing you “why are thinking about a fourplex, why aren’t you shifting to thinking about a 100 unit complex??”

Ignore them, they've been to a nothing-down seminar.  You have your funds to buy with and no amount of rah-rah $1000 seminars will change that (besides having $1000 less to invest).

Am a broker and get those calls a couple of times a month.  I try not to spend too much time without being rude.

I'd join a class action suit, however, getting judges to agree (since in OR a lot get appointed by the government) is going to be a hard push and they'll find every excuse not to stop it.

Kinda funny, how if in OR, we want to get PERS benefits modified since it's bankrupting us, we get the ongoing "sacredness" of contracts argument and that we can't make ANY changes.

Someone should remind them a lease is a contract also since it creates legally enforceable obligations.

Think getting out of the hard money is not a matter of the C Corp, it's more of paying off the loan.

Go talk to a conventional lender and ask them what they need to finance it since you'll probably need to stabilize the property if it's new construction.

Well, broker apts in OR, so may be useless, but:

1) If you don't know what you're doing, get a broker or atty

2) Figure what a FMV is on the property, get numbers and figure return. Then compare it to comps. Write at a price that you can reasonably qualify at (i.e. you have 30% down in liquid funds).

3) Get it mutually accepted, then go thru the contingencies:

a) Title review

b) Physical inspection

c) Books/records review

d) Financing approval

You'll need to affirmatively waive each.

Think I'd get an atty that does RE.  Not an atty, but if someone tells my buyer I'm not responsible for remediation of code violations or major structure issues, I'd walk - UNLESS I HAVE AN IRON-CLAD IDEA OF THE COST.  Kinda weird, since usually I get attys go the other way and blow stuff up over smaller issues.

However, sounds like that was a bargaining chip with the seller since they rolled over right away.

On the realtor, accepting stuff depends on the market.  If it's hot and you want the house and there are 10 other people that want it, you may have to accept stuff.  Then again, realtors get paid when they "realate" (i.e. get deals closed).