[Garrett Francis]

Garrett Francis

That works. Economics would tie out the same, you just won’t get the deed. I personally hate sub2’s given the amount of service providers in a transaction that don’t understand it and will try and kill your deal. Just be sure to put provisions in place that when you want to close on next transaction, seller involvement is minimal/none.

[Garrett Francis]

Garrett Francis

I’m in Tampa, fl and would also like access.

[Garrett Francis]

Garrett Francis

Also forgot to mention that I wonder f I have an interest/agreement with seller and they do the owner financing rather than taking tile and doing an owner carry myself, I wouldn’t be subject to the transaction limits set in Dodd Frank.

Welcome to hear thoughts.

[Garrett Francis]

Garrett Francis

Hi Jackie- I don’t want to take title on this property for the aforementioned skinny profits in the deal. Don’t want to have to cover costs during vacancy or foreclosure with such little equity. However, the seller has a 3.6 fixed mortgage in place that will result in some decent cash flow. The upside wouldn’t be in appreciation but rather strong monthly cash flow and the paydown differences in the note. Not sure I want to give that up since the owner has agreed to the terms in principal.

[Garrett Francis]

Garrett Francis

Such a responsive forum. Glad I found people willing to share insights. Is the management mastery program focused on this? I thought I saw that it was a collection of books written by Miller.

[Garrett Francis]

Garrett Francis

Thanks for the feedback Dee. We are in an inflated market but locking up no interest financing on a 30 yr term creates strong immediate cash flow that marginalizes the price . This is a pretty strong rental market and my expected levered coc yield is close to 18% with a conservative 20% vacancy factor. My downside scenario still has resident income paying for my payments so I’m good with that risk.

I hear ya on the Feds though. Hayek and Mises are rolling I’m their graves.

[Garrett Francis]

Garrett Francis

Thanks for the feedback See. This deal is a personal investment and not a homestead or a deal within my company. We buy apartments in Texas, Florida, and Colorado and Texas/Florida have been tough with tax reassessments. We’re about to purchase a 600+ unit property and expect property taxes to almost triple upon new purchase price posting in records. Just wondering if we can use a trust help determine that cost increase.

[Garrett Francis]

Garrett Francis

Hey Bill- I should have clarified. By taxes I meant property taxes, not income taxes. My full-time job is in real estate private equity and when we purchase deals we always see a massive jump in taxes the year following the purchase due to the taxable values getting reassessed and a new value set.