Met at 827 W. Park, Butte Montana at the “Buttification” home featured in HGTV pilot, July 26th 6:00 to 7:30. Thank you Kathleen for hostessing! Topic for the evening was “financing options”. The group consisted of investors experienced in financing with other people’s money including investing with: family, a contractor to decrease amount for construction loan, traditional bank loans, lines of credit, solo 401k, solicited investors for down payments. Presented basic information on difference between recourse and non-recourse loans. There was also experience in the group with buyers using owner financing and suggested terms to use when owner is elderly.
Attendees touched on the difference between self-employment income tax and passive income tax. S-corp formation suggested as a way to stratify taxation of income generated by a sole-proprietor business. Presented rationale for WREIN being set up as an S-corp.
We talked about the difficulty of “hospice” properties. Properties which have been vacant a long time due to difficult owner relationships. Approaching the owners requires investment in patience, time and focus on win/win. 30% vacancy rate in housing stock in uptown Butte means opportunity for those skilled in difficult conversations with owners.
At each WREIN Meet Up, I ask each person for an “ask”. Asks from this group included: rehab estimation cost calculator, carport strategy solutions, how to monetize WREIN, certified historic brick repair contractors and what was the last…a request for the next group meet up! Feeling that this group is very well appreciated and will continue.
Next meet-up is: August 8th at 6 pm located at Sage Mountain Retreat: http://sagemountain.org/
Will be looking to car pool!