Congratulations Brandon, this is a good story of persistence, as well as how things happen when you are active in the market. You never know who may have the next deal.
I’m curious, is this using one of the bank sources you mentioned in earlier posts back in May? How are your bank relationships working out?
I’m curious, because it seems to be the season for banker to be out recruiting for loans. One of our biggest bank lenders just paid us a PR visit looking for more business. I’ve got another deal that two banks are competing for the deal, and offering terms that haven’t been negotiable in the last few years. It would seem lenders are loosening up for commercial real estate, or is that just in my market?
I think this deal just died due to tax issues. The problem im running into on no-cash down land contract is the the seller has recapture all the depreciation in the 1st year. This is what killed the 7 duplex deal but I thought it was more because that guy held them for years and just had a ton of recap as well as quite a bit of appreciation.
I think this deal just died due to tax issues. The problem im running into on no-cash down land contract is the the seller has recapture all the depreciation in the 1st year. This is what killed the 7 duplex deal but I thought it was more because that guy held them for years and just had a ton of recap as well as quite a bit of appreciation.
Ill update more later.[/QUOTE]
Are you saying the problem is the deal structure and not the really the motivation of the seller? Is there a way to restructure the deal so there is enough cash to cover the tax bill? I would expect a change in the price if there was more cash up front. In other words, how would the deal have to change to make it work for the seller?
Im buying a $500k property for $1400 out of pocket. Its all legal, title and insurance.
I think were still gonna close either as planned or in January to give them 14 months before they to pay the taxes.
If this doesnt work Im going to refi the land contract deals I did last year over the next 6 months then go after this deal with 75%LTV small bank financing and the seller will carry the balance minus credits as a 2nd.
Me and sellers both see me owning this inside of 12 months.