Towson, MD · Member since 2015 · 161 posts · 44 votes
Hello everyone. Does anyone have any thoughts on doing an assignment lease option, sandwich lease option, or seller financing as a first deal in Baltimore? I'm still a newbie, and I recently learned about these strategies and I like that they possibly can require less money out of pocket as opposed to a flip, and that there a several sources of income (new buyer's down payment, some monthly cash flow, then the end profit once the buyer hopefully qualifies for a bank loan). I am trying to learn about other ways to make offers on deals to improve my chances of getting one accepted. Any insight would be greatly appreciated. Our initial goal for our first deal was to do a rehab, but now we are thinking again. We have great credit, but not sure if we are willing to go in on a 1st rehab job while we work full time jobs.
@Sarah Lorenz the seller financing would be as a rental property, but I'm wondering if there was a way to combine seller financing for the purchase, then do a fix and flip deal, or a fix then lease option deal, or a fix then seller finance deal to a new buyer? My hunch is that you would not combine seller financing to purchase the house with a fix then lease option deal to a new buyer because the seller would lose out by getting paid sooner and missing out on interest. Sorry if I don't make any sense!
Angela DeBorja I think asking the "why am I/we doing this" question may help narrow down what options you want to go for. In addition, when you explicitly state that then you can go after that strategy with laser focus. Hope that helps!
@Angela DeBorja I think you know I will help you in any way I can in the Baltimore area. However when it comes to lease options, low equity, or Pretty house strategies. I am not at all the guy to give advice. @Brian Gibbons is strong in these strategies. Look up some of the stuff he has written here.
Also be aware the Dodd Frank law affects how you must approach these deals.
Yes. Ned is a wise man. He knows more about the Baltimore neighborhoods than anyone I can think of. Maybe I can think of one other wise man who knows every street in Baltimore.
Thank you @Ola Dantis, @Ned Carey, @Adam Schwartz, @Brian Gibbons, and @Steve Vaughan. I grew up in the area as well/ Timonium/Lutherville.Towson and lived in the area most of my life. I have specific target neighborhoods/areas I would like to stick to both in the city and Baltimore County as of right now. I have repeatedly listened to/watched/taken notes on about about 13 hours of Chris Goff home study/webinar content/training on lease options, SLO, wholesaling, marketing, and seller financing that comes with his CRM/REI software and it has really helped me get organized in terms of steps from beginning to end of a deal, from lead generation, contacting the owner, seller screening, inspection/due diligence, offers, contracts (I have had mine to date reviewed by a local attorney here in MD and plan to continue to do so and have local counseling as I move along), affidavits, closings, and getting paid.@Brian Gibbons your advice above refreshingly sounds like the material I have been learning so far with respect to low equity houses/lease option, I have a friend in mind in that motivated seller kind of situation. I would like to hopefully chat with you sometime very soon. @Rich Baer Ned Carey for sure is a wealth of knowledge. I just was picking his brain at the local meet up this week!