All Forum Posts by: Tom Shepard

Paid all cash for first property (cashed in stock options from my day job to get the cash)-- now in the process of using Fannie Mae Delayed Financing program to get equity out to buy a second property.  One of the options for second property is a seller financed duplex from another investor I met on BP who needs the cash from a down payment on the SF to help him buy out his partner!  

Best part of the Delayed Financing program has been talking to lenders about it, as they had no clue they even participated, but once they checked they found out they did!  

That it is!  

I was listening to one of the older BP podcasts today (maybe 17?), working my way through them during drive time, and @Joshua Dorkin was saying how real estate is often slow and steady, not the fast paced excitement that non-investors often picture. The most successful investors seem to be those that find what works for them and repeat it over and over to scale up.  

Not sure what your deal looks like, but most people I know in Nashville are having more luck finding properties that "math out" from sources other than agents and the MLS. Not many great deals there from what I am seeing in Nashville.

Good luck with your investing!  

@Mark Douglas

Your instincts are correct, you have to honor the lease unless you can find a material reason to evict, and then its going to cost you.  Better to find a different property if you cant wait until one of the leases is up.  Agent should definitely find out when the leases end so you can decide.  If they are struggling with simple things like that, I would find another agent.  If you find one that also does property management then they should be familiar with investor relations as well.  Still doesn't guarantee they will be great, but is a good starting point.

Update:  I have contacted several local and national lenders after researching requirements for the Fannie Mae Delayed Financing program, and many of them are able to do it.  Looks like I will have several options.  However--  I had to tell them about the program and let them go look into it.  Two of them told me they got a good education today!

Thanks @Andy A.@Michael Noto@Account Closed

Great info, as always BP rocks!

Update:  I have contacted several local and national lenders after researching requirements for the Fannie Mae Delayed Financing program, and many of them are able to do it.  Looks like I will have several options.  However--  I had to tell them about the program and let them go look into it.  Two of them told me they got a good education today!

Thanks @Andy A.@Michael Noto@Account Closed

Great info, as always BP rocks!

Thanks @Andy A.

Sounds like a plan.  I will start calling on Monday!

Thanks @Michael Noto

 Good info, and sounds like a solid way to go.  I don't have a track record like that (great job!), but I've got a great credit score and good income, so I would think that will count for something too.

Trying to start out slow and steady, (and somewhat idiot proof for me) my wife and I paid cash for our first real estate investment (buy and hold) at the end of February. Our goal is to diversify some or our portfolio out of the stock market and supplement my W2 job retirement in 7-10 years. We planned to make our second purchase probably around the same time next year after bonus season, new tax year, etc. As I am continuing my REI education on BP and meeting other great investors, we are thinking we should take some of the cash out of that first investment and get another deal going now. I have talked to two banks and they said we have to own it for 6 mo before they will refi. I am hearing different from various sources on BP, podcasts, blogs, etc. Can someone with experience refinancing a cash purchase shortly after buying share whether they went to a conventional bank, small local bank, or elsewhere? How did you start the conversation to ensure success? Thanks!

@dawnwilkins

Don't know if you got your answer on this. I would get a second opinion from a different tax person. From what I have read the excise and franchise tax are only on entities (LLC, S-corp, etc), and if it's a LLC that's family owned (95%) and "derives substantially all of its income from passive investments" (66.7%+) then you can apply for a waiver of the franchise and excise tax. It's called FONCE (family owned non-corporate entity) if you want to look it up and read what I read.

Best of luck to you!

Thanks @Clay Smith -- I'll try to give you a shout tomorrow.