All Forum Posts by: Wendy Stclair

@Jaron Walling to clarify, I didn't buy properties in Cali this year with non-conforming loans. I've been buying in the mid-west primarily with 20% down and usually a pre-pay penalty but still 5-6% max. But now i just sold my California condo that was an 2013 residence of mine at 3.65% or something. Thinking now i should have just held onto it and house hacked it but that is a different story. The 1031 stress is real!   

Hi all

I'm a non-W2 employee and I've bought 6 houses the last 2 years with non-conforming loans at approx 4.25 - 6% interest, still making them cash flow without issue and putting 20% down with 30 year conventional loans. I've found several lenders doing these loans. 

I saw the hike coming but didn't anticipate this level so fast. I'm doing a 1031 exchange so I have both loan and equity (cash down) requirements ($378k in cash and $278k in debt if that helps) . I was really hoping this was my chance to level up into more Real estate and get closer to retirement! 

But today i was just quoted 7% for 20% down on a 7-year ARM (and yes prepay penalties if i opt out early). YUCK! I see my options as these and curious if anyone has other ideas or recommendations? I'm dealing with a few properties in this exchange so i can be flexible but man someone just moved my cheese... again!

1) put more down - i'm told that putting 50% downcan get me closer to 6% interest . 

2) opt for an interest only loan at about the same 7% rate (no prepay penalty) for 50% of the property or something and use the equity (cash) for the rest of it

3) quickly accept a high paying W2 job in the same industry i've been in and then maybe i can quality for 5 - 5% rates which is what i hear the fanny / freddie loans are creeeping up to now (I am actually interviewing for one but don't want to take it as i love my freedom!) 

is the grass any greener on any other sides of this yard? thanks! 

Hi Jason! Great move. I am curious if you are doing this on your own or partnering? I too have several SFH and some small multi and this whole tim'e i've wanted to do more multi-family but I've struggled to find 6-10 unit places for under $2M even more than finding cash flowing SFH!

I totally agree with @Josh Chastain regarding trying Mashvisor a couple years ago. i'm currently re-looking at it to see if it has improved and within 30 minutes began wondering the same thing about updated listing info.  Thanks for the tip re AirBNB, I'll check it out also.

Shoot -trying to clarify here - what i meant was... I KNOW i'll owe for these 3 CA properties going forward BUT my hope is that I'll pay less to Cali in the long run if i ONLY buy 3 properties with the 1031 (one with cash) then later do a cash out refi on that last one and take THAT cash to buy more properties OUTSIDE the 1031.  yes? 

Hi

I'm in the middle of a 1031 exchange out of Cali and trying to minimize how much hassle i bring into my life with this "clawback law"  My thinking is this... can anyone confirm? If i leverage myself as much as possible and buy 6 or so multiple properties paying just the minimal downpayment, I will have many properties i eventually need to pay California tax on.  But if I just get 3 properties (of course with the required equity and boot numbers) i could buy just 3, one mainly with cash. That last one i would own outright and that would satisfy my exchange right? Then to make that money work for me later,  (maybe even soon if i wanted) i could cash out refi that property and buy more properties that would NOT be subject to the exchange.  is this flawed thinking?  thanks for any insights!  

I also have invested in two properties with Wagner Nolasco at Bennah Oaks. I've talked with Wagner multiple times on the phone and by email. We are at a critical point for delivery in June / July of this year. Crossing my fingers all goes well. I've had positive interactions with them so far.  Hoping to know more tomorrow on timing as i'm hoping to use this as a 1031 myself as well. We'll see!  

Hi @Ayano Itoh,

I agree with @Tal Shachar. This works best when you have multiple properties - you have holding company LLC in Wy and a direct LLC in the state. Things flow through on your personal tax returns as an (some word i can't remember) entity. Clint Combs does a good job of describing it in this vid link i posted below but watch out it gets pretty deep pretty fast. i do use Anderson Advisors for my RE stuff but i have to say they are very spendy and many days i question whether they are worth it. https://bit.ly/3K7VF8K

@Daniel Mears may I suggest that pit bulls are not bad, they really get a bad wrap. I’ve met some amazingly sweet and even docile pits. Depending on where you live in the US your local town may have demonized them. Denver was like that. I was afraid for a long time. Now in california it’s not an issue and honestly I’ve seen the light. They are STRONG for sure but can be very very sweet and not destructive. Now my sisters husky mix? Destroys everything in its wake.

Do you have any details or a pro forma on this? thanks!