A question for those of you familiar with leasehold property transactions (vs fee simple). If you have a sellers market where pricing is phenomenal and rents have skyrocketed and you *KNOW* you can vacation rental said property and cash flow it to pay for itself in a few short years, because its in a very high demand location, is pet-friendly, and it can provide temporary accommodation for family when theyre in town… How does one structure a win/win for seller financing (assuming the leasehold only has 14 years remaining) or where does one turn to for get financing – considering mortgage companies dont finance leasehold loans on property w less than 30 years remaining? (Seller is sort of open to owc, but really wants to get out of it, kid has graduated, doesnt need property anymore) I have good credit, 20% downpayment, but am self employed for less than 2 years and have claimed aggressive deductions on my taxes, thus lowering my eligibility. Also, the leasehold profile of the property doesnt fall into what traditional financing covers. Love to hear your creative replies to see how this can be approached! Property specs: 62k asking price (I expect to lower that) L/t rental value: $1600 p/m Fully renovated (no renovation costs) Vacation rental value: $125 / night Location: Waikiki
Israel Sandoval: Edward Peugh
Israel Sandoval: He is amazing with his creativity. .. love the mans work…
Ryker Keller: Israel Sandoval: The only thing is, he cant see the post!
Israel Sandoval: Ryker Keller: i thought if the link came out dark.. he could…. bugger.. 🙁 my bad..
Ryker Keller: Israel Sandoval: Nope, not how it works. (S)he (whomever you tag) has to be a member of the group, or they cannot see it.
Israel Sandoval: Thanks for that. I will learn for next time…
Katelyn Buchanan: awesome Helena thank you for reply. looking forward to seeing how your friend works 🙂
Ryker Keller: It sounds as if you may have answered your own question here and pretty well covered all the bases. Sometimes NO really is the RIGHT answer. There is no way this is going to result in a win-win. Either you or the seller is going to be very unhappy with the outcome.
Katelyn Buchanan: haha. Yes. Have to agree with this one
Hadley Ford: Katelyn Buchanan:, How long has the seller owned the property for? Whats their basis and whats their selling price? If they held the properties for a long time AND theyre selling it for higher cost, then they may owe capital gains & depreciation recapture taxes. By doing seller financing (installments), the seller can defer those taxes PLUS make interests on what they would have paid in taxes. Also, find out how much they owe on it so you can entertain the idea of doing a wrap-around contract
Katelyn Buchanan: Hi Sam, thank you for your reply! The seller has owned the property for 7 years, and although they have made some nice improvements (i suspect they did it themselves and probably did it for 10k or less) but now the leasehold only has 14 years remainin…See more
Katelyn Buchanan: Hey guys, sorry for the delay in reply, for some reason the notifications must have been overlooked by yours truly. I decided to move on from this kind of deal as it doesnt build equity and is a little too complex for a novice buyer. When you live in Hawaii islands for a long time it tends to cause a myopia with regard to housing and we forget there is a greater world out there. I passed on this property, but I will go ahead and answer your helpful questions (thank you to those of you who took the time to reply!)
Israel Sandoval: There r much easier ways to get into subject 2 stuff. And lease options.. you will find them.. i have faith in you Katelyn Buchanan:
Katelyn Buchanan: Israel Sandoval: interesting. id love to know more about you and what you do Helena. 🙂