All Forum Posts by: Travis Sperr

Mostly from wholesalers -there are a lot of them in the area, some are much better than others. I am not sure what you are asking in regards to the loan and down payment - for new construction projects?

@Amanda O'Mara Welcome to BP. Access to the MLS can be helpful but not necessary, taking the course for your RE license will certainly give a much better understanding to the ins and outs of how real estate transactions transpire. The best deals are happening off market right now.

Good Luck and let me know how I can be a resource as you continue your journey.

Never heard of them.

 A couple notes

I don't follow when you said you would be saving the $20k toward rent? there is almost 0 loan pay down in the first year especially when considering the money you will spend on the property.

No Idea what this means: However in 3 years time, when I am able to ay 20% of the home value (with extra payments) -- the Mortgage payment would be 2K and rental 2.6K (assuming no change). So a $600 per month margin

Don't count on such high appreciation, the Denver Metro appreciation over the last 40 years is 6% per year.

Also do a little research on what a turn over costs especially on a higher end home with sq ftg.

@Scott Trench - Landlord sounds like jerk. 

Not taking his side but devil's advocate - without notice and a signed lease - how could he have re-rented the property as it was leased to the tenant? So he missed out on potential rental income from another source during that period?

Not saying it is the way I would handle it. Un/Fortunately it is a small amount of money and not worth going to court for, considering the signed lease showed what was agreed upon.

@Sunny Basu This is a tough on because you intend to live in the property before moving (meaning you may need a better neighborhood than a straight investment purchase). It has been my experience that it is difficult to make money on single family properties with a value above about $250-300k. The mortgage amount is so high and the rents only increase marginally after about $2,200 per month. I am not sure what you are seeing for rents in that area? 

Does your zillow calculator include taxes and insurance? Toss a property manager, vacancy and repairs in the mix and it gets tight.

Not saying it cant happen but I would really encourage you to run your numbers and see if the cash flow makes sense. You might find that a smaller purchase price with 3 or 4 beds would yield a better return.

Last thought is if the property doesn't perform well it could make it difficult to finance a purchase where you are moving to.

Good Luck!

@Bert Nethercot I am sure there is a 1031 specialist that can jump in here as well, but you may want to do some more research regarding the process. The purchase of the new property doesn't need to match the sales price of your current asset, it needs to be at your basis (original purchase) or higher. The debt does need to be the same or greater than the property you are selling. The exchange intermediaries websites are very helpful in helping you work through a lot of the details.

I just did a reverse exchange earlier this year and it was a great tool to defer a similar amount of gain.

My gut says to avoid this. You are taking all of the risk in this transaction - 100% owner financing for your buyer, no skin in the game on a turn key investment. If he has so many rentals why doesn't he have any money?

Very likely if structured the down payment loan would be in 2nd position. So with a small high interest can you still sell the 1st? certainly -but there would have to be a discount for the additional risk in the CLTV. Can you sell just the 2nd, I guess there may be a buyer out here for that, but for pennies on the dollar.

When considering the discount you would take on the sale of the note(s), why not just sell them to a buyer at a discount now that doesn't need your financing?

There is a process for this in every municipality. Call your city or county zoning department and explain what you are looking to accomplish, they will be best to get you the information.

@adam Next event is tomorrow at cannonball creek brewery in Golden. 5pm to 8 ish.