All Forum Posts by: Tim Zajicek

Great insight, thanks Brett

Hey Paulo- thanks for the words of wisdom, appreciate it. 

Thanks Kyle- appreciate the advice 

Wondering if anyone has experience with using a Delaware Statutory Trust to complete a 1031 exchange? Any insight on pro's/con's would be amazing.

If what you thought about equity and rates of return turned out not to be true, when would you want to know? 

Jordan- you bring up a great topic. I’m in MN and you are correct that the Brrrr strategy is very difficult right now. I tend to buy a property for cash flow, but we also must realize that equity sitting in a property earns zero percent. It’s like putting money in a coffee can and burying it in the backyard. Also remember that the only way to access that equity down the road require either a refinance or the sale of the property.  So I would argue having liquidity, use and control of that money would put you in a safer position than having it buried in equity in the house. 

Okay thanks for the info. They do own it free and clear! Would it make sense to buy an owners title policy? 

Hey Erik- thanks for the comments. Is there a better/best way to set up the seller financing? Something better then “contract for deed” or is that pretty standard. Does it matter that the property isn’t titled to me? 

Looking at purchasing a 9 plex and the current owner is interested in seller financing. Is that the same thing as a "contract for deed." Also, I would be buying the complex in the name of my LLC, but the seller is wanting me to also personally guarantee the deal, is that common? I'm assuming most banks would do the same thing??

was wondering what the pro's and con's would be of seller financing? Look at buying a 9 plex and the owner is willing to do the following: 20% down, 25 year amoritization, 3 or 5 year balloon (I pick), 5% interest rates. Most commercial lenders in MN right now are 25% down, 5.125% interest with 7 year balloon.