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Critique my offer?

This topic contains 12 replies, has 0 voices, and was last updated by Avatar of anonymous anonymous 14 years, 10 months ago.

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  • #2811
    Avatar of anonymous
    anonymous
    Member

    I have an appointment with a seller on Friday evening. I’m trying to get a handle on most of my offer(s) before I go.

    The specifics:
    Asking 160k
    FMV – 160k “as is” per appraisal 4 mos ago.
    Owes 116k (106k 1st and 10k 2nd) ($1024 PITI and $239 respectively)
    Both are current.
    Needs “updating”. Unsure of costs of rehab as I haven’t seen it yet.
    Estimated ARV – 190-200k (per seller)
    Waiting on some comps from a Realtor friend. There are houses in that subdivision that are worth 200k, there are others worth 120k.

    If comps bear out the 190 ARV, I thought I’d offer the following….

    170k if he services the 2nd mortgage and agrees to at least a 5 year term. Trying to free up some cash flow. 1300-1600/mo rent is typical in this area for a 2100 sq. ft house.

    160k if I have to service the 2nd.

    Exit strategy:

    Bump equity to 200k
    Get 5% down ($10k)
    Monthly spread – $22560 ( $376/mo for 60 mos.)
    Split of Appreciation at termination- $23750 (at 5% app. Currently appreciating at about 12%/yr)

    10,000
    22560
    23750
    $56310 profit

    Of course, I didn’t include cost of the rehab in there. Assuming 10k at this point, we’ll see.
    Cost of the trust and closing costs also not in there.

    See a better way or something I missed?

    #18395
    Avatar of red12
    red12
    Member

    Didn’t realize I wasn’t logged in! This board needs a “tweak” in that regard. Seems to happen a lot!

    #18396
    Avatar of anonymous
    anonymous
    Member

    1) if youre offering $170k while the seller carries the $10k 2nd, does this mean youre going to personally put up your credit to get conventional financing for the 1st? in essence you still have to service the $10k 2nd right? this doesnt make sense?

    it would make sense if you offer $170k while you service his $106k 1st and 10k 2nd. you’d freeze his equity at $160k and give him an addition $10k probably at the end of the 5 year trust term.

    2) im also confused when you said $160k and you’re servicing the 2nd. doesnt this mean youre paying the retail price and qualifying for a 100% conventional loan? it sounds like youre paying FMV @ 160k to get the seller completely out of the picture and then structuring a PACtrust with you and an RB on a $200k MAV?

    #18397
    Avatar of anonymous
    anonymous
    Member

    how motivated is this seller?

    give out a letter of intent with 4 offers and make the seller pick.

    high offer – YES
    you can offer his asking price or more only if the seller agrees to your trust terms

    middle offer – maybe
    you can offer 10% below FMV if the seller is willing to give you some incentives(credit repairs, closing costs). youre going to have to put up your credit

    middle offer – maybe
    you can offer $130k if the seller is willing to carry a 30k 2nd payable in 5 years. youre going to have to put up your credit

    low offer – definate NO
    you can offer all cash with a low ball price by discounting his equity by factoring rehab costs, holding costs, closing costs, etc.
    whatever is left over is your maximum offer.

    #18398
    Avatar of red12
    red12
    Member

    @alvin wrote:

    1) if youre offering $170k while the seller carries the $10k 2nd, does this mean youre going to personally put up your credit to get conventional financing for the 1st? in essence you still have to service the $10k 2nd right? this doesnt make sense?

    it would make sense if you offer $170k while you service his $106k 1st and 10k 2nd. you’d freeze his equity at $160k and give him an addition $10k probably at the end of the 5 year trust term.

    2) im also confused when you said $160k and you’re servicing the 2nd. doesnt this mean youre paying the retail price and qualifying for a 100% conventional loan? it sounds like youre paying FMV @ 160k to get the seller completely out of the picture and then structuring a PACtrust with you and an RB on a $200k MAV?

    Thanks for taking a look Alvin. In answer to your questions:
    1. I wasn’t getting financing. My R/Bs payments should cover everything. I just thought if the S/B paid the 2nd in exchange for a higher offer, I’d be able to free up cash flow (which is currently more important to me). Is there a reason that won’t work (other than Seller not agreeing to it) that I’m not seeing.

    2. Again, I don’t plan to qualify for a loan at all. Other than paying the 1st AND the 2nd, it’s exactly like the other offer

    #18399
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Here’s how I would do it:

    @Anonymous wrote:

    Asking 160k
    FMV – 160k “as is” per appraisal 4 mos ago.
    Owes 116k (106k 1st and 10k 2nd) ($1024 PITI and $239 respectively)
    Estimated ARV – 190-200k

    Questions:
    Who is putting up the $10,000 for the “repairs’?
    When are the repairs going to be made?
    Who’s going to make the payments during repairs.
    How long are repairs going to take.

    @Anonymous wrote:

    170k if he services the 2nd mortgage and agrees to at least a 5 year term. Trying to free up some cash flow. 1300-1600/mo rent is typical in this area for a 2100 sq. ft house. 160k if I have to service the 2nd.

    I have no problem with you offering him $170,000 at all, I may too, but it is not necessary. I have a rule of thumb. Always give them what they are asking and MORE. Bill talks about deducting things from your offer like Repairs, Commissions, Closing Costs, etc. I don’t bother and just give them what they are asking. No negotiations, no dickering etc.

    However, I do show them what they may Net if they sell for $160,000. This guy may only take away or net $140,000. I make that clear and the Seller agrees that if they sell for their asking price they may only come away from the closing table with $20,000, not $40,000. So by me offering Full Price of $160,000, the Seller will recieve the whole $40,000 at termination not just $20,000 if they sold today.

    Not that you can’t ask, but for what reason do you need or feel you need to ask the seller to pay the second, it’s not necessary to build in Positive Cash Flow for yourself. The RB payment will more than cover the second and give you cash flow (see below). Asking the Seller to make the 2nd may kill your deal in this case.

    Five years may be too long but I always ask for the longest term possible. You also need to remember, that if it goes past 3 years, the seller may have a taxable gain to deal with and were not talking about a “deperate” seller here. He is current and not over encumbered.

    You are also make one critical mistake. Forget the term “Market Rents”. We are NOT dealing with Renters or a Rental situation here. You may start at Market Rent but sell to the RB additional Benefits, such as Taxes, Pride of Ownership, Share of Appreciation and Profits. These are all thing that you don’t get for $1300 to $1600 in “Rent”.

    If indeed the ARV (After Repair Value) is $190,000 bumping it to $200,000 MAY be no problem but then again it MAY. What happens when the prospective RBs ask what the price is? Of course this isn’t a sale but they see this “Bumped’ value and say, “no way”. I’m not paying $200,000 for a $190,000 house. I do bump the MAV on most of my deals but you just need to be aware of this and know how to explain it to the RB.

    As I look at this deal as a whole, it reminds me of one of Jim Pasquini’s favorite saying, “Pigs get feed, Hogs get slaughtered’. In other words, you may be trying to milk this thing too hard.

    Build Value First and Profits will Follow. Hey, that’s pretty good, I think I’ll claim it.

    @Anonymous wrote:

    Exit strategy:
    Bump equity to 200k
    Get 5% down ($10k)
    Monthly spread – $22560 ( $376/mo for 60 mos.)
    Split of Appreciation at termination- $23750 (at 5% app. Currently appreciating at about 12%/yr)

    10,000
    22560
    23750
    $56310 profit

    Now let’s look at your numbers and Exit Strategy.

    First:
    What do you mean 5% Down? I would give the Seller ANY Down.
    Is that what YOU are going to give the Seller upfront to do the deal?
    Who are you splitting Appreciation with here, the Seller or the RB?
    And, If it is the Seller, WHY?
    How did you calculate the monthly spread? If you can get $376 per month on this per month great but you forgot the monthly Trustee Fee. And, if you want to get an RB in, this may make your payment too high even if you do sell the RB additional benefits (below).

    Your split is not of Appreciation no matter who your splitting it with. It is of NET Profits and Proceeds. There is a big difference. And, you can’t calculate the appreciation based on your bumped value but only of the Current Market Value of today which is the $190,000 ARV. So $190,000 at 5% appreciation for 3 years would be approximately $220,000 and 5 years would be $240,000. Let’s use the 3 years figure for now, here is how the NET Proceeds are caluculated to “split”.

    $220,000 RB Purchase Price
    $115,000 Loan Balance, assuming NO Note reduction, is paid leaving…
    $105,000
    $ 45,000 Sellers beginning Equity returned to him
    $ 60,000
    $ 40,000 Your Equitable Interest to you (diff of $200k and $160k)
    $ 20,000
    $ 10,000 RBs contribution to Trust at inception returned
    $ 10,000 NET Profits to be Split

    If the RB is getting 50% Interest, which they should or you won’t get an RB, they you are spliting the $10,000 NET with with the RB which leaves you $5000 of NET Profits, $40,000 of Equitable Interest or spead in the deal plus whatever you have made in Cash Flow.

    If you wish, and I do this quite often to get the deal, I split the the $40,000 or a portion there of with the Seller. Or, like what you did upfront, offer $170k so the Seller gets $10,000 more at termination and you get $30,000 instead. I like that way myself. Give em more than what they are asking. Again, I would not have the Seller paying the 2nd Mortgage unless you are splitting the entire $40,000.

    @Anonymous wrote:

    Of course, I didn’t include cost of the rehab in there. Assuming 10k at this point, we’ll see. Cost of the trust and closing costs also not in there. See a better way or something I missed?

    So are you planning on putting $10,000 into this thing for repairs before you put an RB in? Why not let the RB do ALL the repairs instead? Let them spend their money, not yours. Or you can also use some of your money and let them do the work. For doing that you could give them part of the total deal or part of your $40,000. Or make the MAV only $180k instead so when they fix it up they also share in more NET proceeds and profits.

    You can even give them “Credit”, dollar for dollar, for materials only on the repairs as a contribution to the trust in addition to their initial contribution for Closing Costs.

    Of cours in my example I did include RB Closing Costs but what I didn’t include was your upfront Investor Profit of those costs which may now be another $5000 to $6000.

    I think, without the Seller paying the 2nd, you can still Cash Flow $200 plus per month after all costs. That is 100% more than most Landlords get. Do you know how many Landlords and NARS Members would love $200 per month in Positive Cash Flow?

    #18400
    Avatar of red12
    red12
    Member

    @scott_l._moyes wrote:

    Here’s how I would do it:

    @Anonymous wrote:

    Asking 160k
    FMV – 160k “as is” per appraisal 4 mos ago.
    Owes 116k (106k 1st and 10k 2nd) ($1024 PITI and $239 respectively)
    Estimated ARV – 190-200k

    Questions:
    Who is putting up the $10,000 for the “repairs’? The RB during the term of the trust.When are the repairs going to be made? Anytime during the trust. Near the end would be better for achieving max FMV.Who’s going to make the payments during repairs. N/A
    How long are repairs going to take. At least 24 hrs LESS than the length of the Trust! LOL!

    @Anonymous wrote:

    170k if he services the 2nd mortgage and agrees to at least a 5 year term. Trying to free up some cash flow. 1300-1600/mo rent is typical in this area for a 2100 sq. ft house. 160k if I have to service the 2nd.

    I have no problem with you offering him $170,000 at all, I may too, but it is not necessary. I have a rule of thumb. Always give them what they are asking and MORE. Bill talks about deducting things from your offer like Repairs, Commissions, Closing Costs, etc. I don’t bother and just give them what they are asking. No negotiations, no dickering etc.

    However, I do show them what they may Net if they sell for $160,000. This guy may only take away or net $140,000. I make that clear and the Seller agrees that if they sell for their asking price they may only come away from the closing table with $20,000, not $40,000. So by me offering Full Price of $160,000, the Seller will recieve the whole $40,000 at termination not just $20,000 if they sold today. Good point.

    Not that you can’t ask, but for what reason do you need or feel you need to ask the seller to pay the second, it’s not necessary to build in Positive Cash Flow for yourself. The RB payment will more than cover the second and give you cash flow (see below). Asking the Seller to make the 2nd may kill your deal in this case. After thinking about it, I agree. I’ll pay both mortgages.
    Five years may be too long but I always ask for the longest term possible. The Seller actually suggested 5 years during our first conversation. You also need to remember, that if it goes past 3 years, the seller may have a taxable gain to deal with and were not talking about a “deperate” seller here. He is current and not over encumbered. He’s been in the house less than 2 years so he’s gonna have capital gains issues either way.

    You are also make one critical mistake. Forget the term “Market Rents”. We are NOT dealing with Renters or a Rental situation here. You may start at Market Rent but sell to the RB additional Benefits, such as Taxes, Pride of Ownership, Share of Appreciation and Profits. These are all thing that you don’t get for $1300 to $1600 in “Rent”. Selling the tax benefits of homeownership may allow me to pull in 1500-1700 giving me at least a little spread after the monthly Trustee Fee (approx. $70)

    If indeed the ARV (After Repair Value) is $190,000 bumping it to $200,000 MAY be no problem but then again it MAY. What happens when the prospective RBs ask what the price is? Of course this isn’t a sale but they see this “Bumped’ value and say, “no way”. I’m not paying $200,000 for a $190,000 house. I do bump the MAV on most of my deals but you just need to be aware of this and know how to explain it to the RB. So…how do you explain it? If it’s an issue, I could adjust back down to 190k, I suppose…
    As I look at this deal as a whole, it reminds me of one of Jim Pasquini’s favorite saying, “Pigs get feed, Hogs get slaughtered’. In other words, you may be trying to milk this thing too hard. Agreed. I heard another version of that from a professional Poker player, “You can shear a sheep many times, but you can only fleece him once!”
    Build Value First and Profits will Follow. Hey, that’s pretty good, I think I’ll claim it. It’s not exactly “Damn the torpedoes, full speed ahead!” but it’s still pretty good! :P

    @Anonymous wrote:

    Exit strategy:
    Bump equity to 200k
    Get 5% down ($10k)
    Monthly spread – $22560 ( $376/mo for 60 mos.)
    Split of Appreciation at termination- $23750 (at 5% app. Currently appreciating at about 12%/yr)

    10,000
    22560
    23750
    $56310 profit

    Now let’s look at your numbers and Exit Strategy.

    First:
    What do you mean 5% Down? From RB I would give the Seller ANY Down. Me either!
    Is that what YOU are going to give the Seller upfront to do the deal?
    Who are you splitting Appreciation with here, the Seller or the RB? The RB
    And, If it is the Seller, WHY?
    How did you calculate the monthly spread? If you can get $376 per month on this per month great but you forgot the monthly Trustee Fee. And, if you want to get an RB in, this may make your payment too high even if you do sell the RB additional benefits (below). You may be right. I suppose I won’t know until I get the RB talking to me.

    Your split is not of Appreciation no matter who your splitting it with. It is of NET Profits and Proceeds. There is a big difference. And, you can’t calculate the appreciation based on your bumped value but only of the Current Market Value of today which is the $190,000 ARV. That’s the figure I used. So $190,000 at 5% appreciation for 3 years would be approximately $220,000 and 5 years would be $240,000. Let’s use the 3 years figure for now, here is how the NET Proceeds are caluculated to “split”.

    $220,000 RB Purchase Price
    $115,000 Loan Balance, assuming NO Note reduction, is paid leaving…
    $105,000
    $ 45,000 Sellers beginning Equity returned to him
    $ 60,000
    $ 40,000 Your Equitable Interest to you (diff of $200k and $160k)
    $ 20,000
    $ 10,000 RBs contribution to Trust at inception returned
    $ 10,000 NET Profits to be Split

    If the RB is getting 50% Interest, which they should or you won’t get an RB, they you are spliting the $10,000 NET with with the RB which leaves you $5000 of NET Profits, $40,000 of Equitable Interest or spead in the deal plus whatever you have made in Cash Flow.

    If you wish, and I do this quite often to get the deal, I split the the $40,000 or a portion there of with the Seller. Or, like what you did upfront, offer $170k so the Seller gets $10,000 more at termination and you get $30,000 instead. I like that way myself. Give em more than what they are asking. If the deal requires further incentive to the Seller, I was thinking of offering him a 10% share of the future profits. At least that would help offset his capital gains tax in the year of the trust termination. How’s that sound to you? Again, I would not have the Seller paying the 2nd Mortgage unless you are splitting the entire $40,000.
    I’ll be servicing the 2nd, most likely, but I would be willing to forfeit some of my future profits to the seller (by way of a percentage of the profits). That way I could increase my cash flow, which is my primary concern at the moment as I attempt to transition into CRE “full-time”. This could also benefit the seller, since his 2nd will be paid off BEFORE the end of the Trust (assuming at least 5 year term) and he won’t make that payment for a while toward the end.

    @Anonymous wrote:

    Of course, I didn’t include cost of the rehab in there. Assuming 10k at this point, we’ll see. Cost of the trust and closing costs also not in there. See a better way or something I missed?

    So are you planning on putting $10,000 into this thing for repairs before you put an RB in? NO, way! Why not let the RB do ALL the repairs instead? Let them spend their money, not yours. Or you can also use some of your money and let them do the work. For doing that you could give them part of the total deal or part of your $40,000. Or make the MAV only $180k instead so when they fix it up they also share in more NET proceeds and profits. We discussed this in this thread… http://site.landtrust.net/board/viewtopic.php?t=3744 . That’s my plan.

    You can even give them “Credit”, dollar for dollar, for materials only on the repairs as a contribution to the trust in addition to their initial contribution for Closing Costs. See link above.

    Of cours in my example I did include RB Closing Costs but what I didn’t include was your upfront Investor Profit of those costs which may now be another $5000 to $6000.

    I think, without the Seller paying the 2nd, you can still Cash Flow $200 plus per month after all costs. That is 100% more than most Landlords get. Do you know how many Landlords and NARS Members would love $200 per month in Positive Cash Flow?

    So… that leaves us where, exactly?

    MAV 160k
    ARV 190k
    Seller owes 16k @ 1263/mo PITI
    Put house into trust for 5 years
    Get 5% and 2 payments ($12,700) from my RB
    $12700
    - 2600 (Trust setup)
    - 2526 (Contingency Fund)
    $ 7574 (Hip Pocket) <—seems a little high, did I forget something?

    $237,500 — FMV after 5 years @ 5% appreciation
    $109,000 minus loan balance (est. $7k note reduction)
    $128,500
    $44000 – Seller’s beginning equity returned to him
    $84000
    $40000 My equitable interest $200k (bumped equity) – 160k
    $44000
    $22700 RBs contribution to Trust refunded (incl. 10k in repairs)
    $21300 Net profits to be split 50/40/10 (RB/IB/SB) (10650/9585/1065)

    Seller gets 44k + 1065
    RB gets $22700 + 10650
    I get $40k +9585 + 12,000 (cash flow) + 7574 (upfront) = $69159

    Scott, does that look better? Does it look correct?

    Sorry for the length!

    #18401
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Red12 wrote:

    So… that leaves us where, exactly?

    MAV 160k
    ARV 190k

    This is assuming the RB does the repairs and that they are done prior to moving in, which then would allow you to put an MAV of $200,000. I would suggest making the MAV $170,000 or a bump of $10,000 to you first and then let the RB make the $10,000 in repairs over the 5 years or when ever they want. But you can’t make the MAV now of $200k.

    I’m going to work this up based on the MAV of $170,000 NOT $200k because that is NOT the Current FMV,and the RB actually doing all the repairs, and you giving them full credit for them.

    @Red12 wrote:

    Seller owes 160k @ 1263/mo PITI
    Put house into trust for 5 years
    Get 5% and 2 payments ($12,700) from my RB
    $12700
    - 2600 (Trust setup)
    - 2526 (Contingency Fund)
    $ 7574 (Hip Pocket) <—seems a little high, did I forget something?

    5% of $170,000 is only $8500, I’ll round it off to $8000.

    $8000 RB contribution
    $3000 Two payments, one for contingency fund and one for 1st payment
    $11,000

    $8000
    $2600 Setup Costs as per your example
    $3400 Upfront profit

    I would either go with 3% plus two payments or 5% plus one. I use 5% plus one because the other month for the contingency fund is taken out of the 5% but I’ve used 5% plus two for you here.

    Thinking about it, from a marketing concept, I like 3% plus two payments better, and 3% looks smaller. And remember the thing about the Hogs. You don’t want this to sit on the market for a long time. 5% is $8000 plus $3000 or so for two payments. 3% is only $4800 plus $3000 or so. You will get more in at $7800 then $11,000. Just something to think about. I’m going to use 5% plus two for now.

    Since the RB is doing all the repairs as an RB while living in the place, we have no idea what the ARV will be or when so we again will make some assumptions. We will assume that when they are done that it increases the value by $30,000.

    $170,000 MAV @ 5% appreciation per year
    $ 30,000 Increase in Value over the 5yrs as a result of repairs plus…
    $200,000 @ 5% ….

    $250,000 — FMV after 5 years @ 5% appreciation
    $109,000 minus loan balance (est. $7k note reduction)
    $141,000
    $44000 – Seller’s beginning equity returned to him
    $97000
    $10000 Bump to 170k cuz repairs haven’t been made yet
    $87000
    $18000 RBs 5% of MAV of $160k refunded (incl. 10k in repairs)
    $69000 Net profits to be split 50/50 (RB/IB) (34500/34500)

    Forget the SB split. It’s not necessary cuz you’re already giving him $20,000 more than what he would have gotten.

    Seller gets 44k
    RB gets $18000 + 34500
    I get $10000k +34500+ 12,000 (cash flow) + 3400 (upfront) = $59,900

    #18402
    Avatar of red12
    red12
    Member

    Scott,

    Well I met with the seller and his needs are different from what he indicated on the phone. NOW he needs 15k up front cash. We will discount the MAV to 146k if I’ll give him 15k up front and the rest at termination. He actually has a likely RB already lined up that wanted to rent the house from him.

    Anyway I can make this work? I don’t have 15k to give him. I could forfeit my up front profits from the R/B’s contribution but that doesn’t get me but about 25% of the 15k.

    Is this just a “NEXT!” situation? Seller doesn’t want to go to a Realtor but will if he’ll get cash sooner. BTW, my 10k estimate on repairs is probably pretty close. Just need updating.

    BTW Scott, where can I get one of those 95% NOO Pay Option loans you referenced in your “Flipping with EHT..” post? My HML didn’t have that in his arsenal. He e-mailed me with the details on a house that they’re getting back within 30 days with a 360k ARV that can be acquired for 255k.

    #18403
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Red12 wrote:

    We will discount the MAV to 146k if I’ll give him 15k up front and the rest at termination.

    What do you mean WE will discount the MAV. The MAV would still be the FMV which is $160k or your bump to $170k. His current loan balance is $116,000 so that would have him recieveing another $29,000 at termination.

    MAV: $170,000 after bump of $10,000 to you.
    Ask: $160,000
    Dwn: $15,000 What he wants up front, if you give it to him
    Bal: $145,000
    Loan: $116,000
    His beginning equity contribution would be… $29,000

    @Red12 wrote:

    Anyway I can make this work? I don’t have 15k to give him. I could forfeit my up front profits from the R/B’s contribution but that doesn’t get me but about 25% of the 15k.

    I could make it work too, but I wouldn’t be giving him $15,000 upfront. I may offer to buy some of his equity for .50 on the dollar but thats all. If he is considering getting a Realtor then he is going to lose at least 3% of the eventual sales price, which I guarantee you is NOT going to be $160,000. It will be at least 5% lower plus the Realtor Commission, plus Closing Costs. He will net less than $145,000 on an outright sale and you need to let him know that you know that.

    What I would do is have him refinance, pull out his $15,000. The Closing Costs will be rolled into the loan so the RB is going to pay them anyway. Then at termination he can get another $29,000. But I would not five this guy $15,000 for absolutely NOTHING!

    @Red12 wrote:

    Is this just a “NEXT!” situation? Seller doesn’t want to go to a Realtor but will if he’ll get cash sooner. BTW, my 10k estimate on repairs is probably pretty close. Just need updating.

    Again, the most he would get with a Realtor would be $25,000 to $30,000, MAX. He can refi, take his $15,000 now and get the rest at termination. No cash out of your pocket and you can make some upfront cash. If he will do this let me know and I’ll help you.

    @Red12 wrote:

    BTW Scott, where can I get one of those 95% NOO Pay Option loans you referenced in your “Flipping with EHT..” post? My HML didn’t have that in his arsenal. He e-mailed me with the details on a house that they’re getting back within 30 days with a 360k ARV that can be acquired for 255k.

    Just call me and I’ll take care of it. I have a couple of Banks I deal with just for these deals.

    #18404
    Avatar of red12
    red12
    Member

    After I posted this, the light bulb went off! DUH! Get him to refi for his cash.

    How ’bout an interest only deal, that lowers his payments and increases my cash flow?

    10-4 on call you, Scott. I’ll do that Monday after I’ve seen more than just pictures.

    #18405
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Looking forward to it and I’m glad the lights came on for you.

    Good Job!

    #18406
    Avatar of anonymous
    anonymous
    Member

    I heard a while back that investors in Katrina Zone properties could greatly accelerate the depreciation of their newly acquired properties; but that may have been within the year following Katrina. Do you know if this is so? I hope you have been able to take advantage of it.

    Anyway it sounds like you are off to a flying start in the NARS way of investing. I’ll be -flap, flap – right behind.

    Merry Christmas and may all your investment dreams come true.

    Dennis Whitmer
    A “button busting” proud member of Utah Pac-Rats

    #18407
    Avatar of red12
    red12
    Member

    There are provisions in the Gulf Opportunity Zone (GO ZONE) established by the Feds after Katrina. I’m am not up-to-speed on the details of that program….

    I did find some info online:

    http://www.mississippi.org/content.aspx?url=/page/3269&amp;

    http://www.gozoneonline.com/?gclid=CO63udC1nIkCFRxZVAodTUZNWg

    http://gozoneguide.com/

    HTH,

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