All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1799 times.
Post: Cash or Mortgage for Quick Deal
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
Originally posted by @Trey Wilcox:
@Scott Wolf We haven’t gone over the details but from what we have discussed he is more interested in helping me learn than turn a profit. That being said he obviously doesn’t want to lose money so instead of paying interest on the loan we have discussed that when we sell it we would split the profits by a certain percentage.
That makes more sense, but I'd still talk to a mortgage professional in your area, or your primary banker to get an idea of what they can offer you, and start hammering out some details with this private lender so you can figure out which path is best for you.
Post: How will the death of the 1031 impact you???????
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@James Hamling, it doesn't require what you said at all
"your narrative to be true it requires a construct that politicians are 1: intelligent and knowledgeable of actions & effect on the market, and 2: always act for what's in the general publics best interest. "
It requires them not being able to fund projects in their states and listening to their biggest donors, and constituents, which a lot of times are RE players.
If you're so sure of your position. My offered wager stands, and it doesn't involve squirrels.
Post: How will the death of the 1031 impact you???????
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
Originally posted by @James Hamling:
Originally posted by @Steve Morris:
"I doubt the political will exists to get rid of it"
I don't know. last time Ds owned the world was 2009, however, the make-up of Congress has changed a lot since then. If Congress is D run, odds are new taxes are more likely than not.
Way too many things to fix, like climate change, bad schools, social injustice and inequities - And we've done so great on these up to now. These all need funding, plus they've discovered how easy it is top spend $1T at one shot now, so there's that.
I suggest doing some google searching or simply read this article (https://thediwire.com/biden-pr...) detailing the end of 1031 is not theory, nor talking point, heresy or conspiracy, it is a key component of the incoming administrations tax plan "The Biden Plan for Mobilizing American Talent and Heart to Create a 21st Century Caregiving and Education Workforce", that has a $775 BILLION cost to it, making it necessary to create funding for, such as raising capital gains and eliminating capital gains tax measures such as 1031.
I suggest also checking who controls which branch of Gov. as of this moment, as it stands as D across the board for incoming administration, making for a clear path for 2yrs to pass whatever D may desire, such as the new administrations tax plan.
In summary, it's all but certainty it's happening.
Ok, so let's make a friendly wager $100. @Dave Foster can hold the money in escrow for us.
Once again I'll cite political will. NYC alone lost $1.2 BILLION in tax revenue from decreased sales activity in 2020 due to the pandemic. I don't see Congressmen & Women signing up to further hurt their tax bases from real estate transactions.
Post: Cash or Mortgage for Quick Deal
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
Originally posted by @Trey Wilcox:
@Scott Wolf I really appreciate the responses! I’m looking in Athens, GA. where supply is very limited. The pros of my cash lender is that he’s a friend and mentor as well so I know he would not charge me more than what’s fair and he would also analyze the deal with me before the purchase because it would be his money. The cons are having to find that great deal for him to agree to. Hearing y’all’s input on the amount of time allows me to feel more confident moving forward with him. The mortgage would be more of a back up in case I couldn’t find a deal he agreed with. That is if I could even find someone to give me a loan due to my lack of credit. Would anyone know any creative financing strategies if that were the case?
"he would not charge me more than what’s fair" Fair for who? As a private lender, they will most likely be looking for at least a 6% return, and that's being generous. A bank now, you'll be at sub 4% at worst.
What terms have they provided you so far?
Post: How will the death of the 1031 impact you???????
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@James Hamling, yes it will certainly die. All politicians always keep all of their promises. (please note this is saracasm)
It may happen, it may not. If it does get removed it will hurt lots of businesses and stall out markets. I doubt the political will exists to get rid of it, and my money is on it not getting killed.
Post: Anyone ever had a buyer not show up to closing?
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@Jared Hettler, if the buyer has signed a contract, there should be provisions in there with some penalties (forfeited down-payment usually) for not completely the deal. My advice would be to speak with an attorney in your area.
Post: Cash or Mortgage for Quick Deal
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@Trey Wilcox, I agree with @Aaron Smith. July is a long time to find a deal and close.
Not sure I understand your reasoning on the private lender vs. mortgage. If you'll be living in the place, and have a job, you should be able to get a mortgage at a much lower rate than a private lender would offer.
Post: Properties in New York City — price drop?
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@Daniel Cohen, I feel your pain. Childcare & zoom school has been a nightmare for my wife & I.
I own something in Hyde Park, NY (just north of Poughkeepsie) and it has been doing well during the pandemic. I like the area you mentioned, because I feel that domestic/local travel will be the first to resume, so if you can find something near the ski resorts to airbnb, I think it could be a huge success.
Post: Open an new LLC for rental property
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@Joseph W., @Alexander Szikla is correct, you can use your NY LLC. NJ may have some foreign entity fees you will need to pay to use it, but it will be less than opening a new llc in NJ most likely. I'd speak with an attorney or you can try to look it up.
Post: Ended 2020 with 3 closings. What are your 2021 goals?
- Lender
- Boca Raton, FL
- Posts 1,919
- Votes 933
@Chinyere Orie, I'm currently reading Atomic Habits. Only 30% in and already feels like a must read!