All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1796 times.
Post: Liquid cash to invest
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Brian H., what you're describing is being a private lender. This is a good route to make good cashflow, but if you are an accredited investor, you can invest in syndicated deals, and get cash-flow plus the appreciation/forced appreciation, which can usually result in greater gains. Being a lender only gets you interest income. Both come with their respective risks. Good luck!
Post: Refinance investment property or sell with a 1031.
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Jeffery Keith Hallen:
Thank you everyone. I was talking to a Property manager/investor (not the one I am using) and he said the properties could possibly squeeze maybe $1000 between them all and also suggested maybe investing $40K each to remodel/ renovate with another bedroom and bath to get close to $3000 for rent. Sounds intriguing but not sure if it's worth it as I am sure the taxes would also go up. I do like the idea of doing a little bit of both -1031 and refi. Maybe that would be the best bet. Still got time to think about it I just need to find a private lender.
Jeff, if you recently inherited the properties, you can most likely sell and not have to do a 1031. This is due to you receiving a stepped up basis from when you inherited them. It will relieve the time and property selection pressure of a 1031. Talk to your accountant or attorney about them.
Post: What are your thoughts on Westcherster and Putnam county markets?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Juan Catano:
@Scott Wolf thanks for the insight.
How’s the inventory in the area for flipping?
Not sure, it's the area of the business I focus on.
Post: Only $5,000 cash how can I start with a rental property !?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Cesar Gomez, have you considered finding private lenders that are looking for funds? It can a be a short term way to get a decent return on the money you have, while building up a larger pile of cash to buy your first investment property.
Post: What are your thoughts on Westcherster and Putnam county markets?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Juan Catano, both are good markets, but high entry price and taxes make it tough for cash-flow. If you're looking at flipping, that may be a better avenue, as those markets are hot right now for people looking to move out of the city.
Post: 1031 exchange for a two family row home
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Ray Young, yes it can be done. You need an attorney and CPA that know what they're doing. Where are you located and are your gains over $250k?
Post: Any New York lawyers can assist in commercial tenant eviction?
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Hi @Daniel Bryant, I know a few attorneys that do that. Shoot me a PM with a few more details, and I'll give you their info.
Post: 1031 Exchange Tax question
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Account Closed, whoever handled this transaction for you really screwed the pooch. Needing the exchange to be worth the full sale price is 1031 101. Expensive lesson learned, (and clearly get a new 1031 team) but since you're paying capital gains tax, the deal was still a win.
Post: New York State LLC Publishing Requirement
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Steve Duffy, this would hold up the title aspect, as we'd need to know the llc was in good standing, etc. That being said, it is a quick fix, but doing it beforehand eliminates one more thing to do.
Post: Seller second financing to tenants with low cash DP
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Daniel Seaton:
Hi all, I have a condo I'm planning to sell soon in Alexandria, VA near Amazon HQ2 in a very hot, low inventory neighborhood. The problem is I have tenants in place until June 2021 and they aren't interested in being paid an early termination fee to move out before the lease ends (I offered when mentioning to them my potential plans to sell). They did however ask about what price I'd be looking to sell at, which leads me to think they might want to purchase the place. They are a young newlywed couple and I don't imagine they have much funds for a DP, but the husbands mother co-signed the lease and I imagine she might consider co-signing a mortgage so I think they could qualify on a DTI basis with her. The problem would be the DP.
My agent has advised listing at 399,990, which I think I could get from an investor, but bidding wars are common in the neighborhood with multiple above-listing offers (I could see the place getting 425 based on recent sales), although I think that’d be less likely in my case since I wouldn’t be able to market to owner-occupants. I was wondering whether I might be able to put together an offer for the tenants where I took back a small (say 10k) mortgage, interest only for 5 years with a balloon payment, and sold it to them for 410k with them putting a Very small amount down. Would they be able to get a conventional mortgage under Such a scenario? Or do they themselves really need to put 3% of sales price into the deal to get conventional financing?
Thanks for any suggestions/advice!
None of us can be sure what they will or will not be approved for. I for one wouldn't be in second position for any property, but I may too risk adverse. I'm also not sure taking a 5.6% haircut to try to sell to an investor is the right move either. Good luck!