All Forum Posts by: Aaron Hanson

Just want to say I appreciate everyone hopping in here with their helpful advice/guidance.  

Thanks for this.  I think this might be the route we explore going.  I was hesitant to do seller financing because it would just mean that we delay getting locked in at better rates, but I suppose with the cost-savings from this route it could end up being a wash? 

I think that's an interesting point I hadn't considered.  We were primarily motivated to move towards a conventional loan to lock in a rate before March. Does that make sense?  Seller financing would certainly mean we could move quicker.   

I appreciate everyone's feedback here and duly noted re: liability with potentially getting involved pre-appraisal. There was no competition on the property, but we landed on a price that was based ARV - our projected rehab costs. We live next door to the house so are familiar with the area.

Thanks for the feedback. You're right, we may be overpaying. @Patrick Britton Not trying to pull one over, but attempting to get the house clean & ready for an appraisal. Does that not happen? 

I know that also historically in Austin there has been a gap between appraisal values and offer prices as the historical sales data catches up to current market values.  To your point, @Eric James, isn't it sometimes the case that appraisals can lag behind?  I'm new to this so am trying to learn. 

Hi BP family, 

We have a fixer-upper deal in Austin that we are looking at that is FSBO and off-market. We have a handshake on a purchase price. It'll be a primary residence and we'll be using a conventional loan. The seller also offered owner-financing, but we're wanting to lock in rates while we can.

The condition of the house could be liveable after a deep (biohazard) clean.  The previous tenant was a hoarder, but most updating is cosmetic and the exterior is in great shape. 

My concern is that the house may not appraise for our offer price and my question is if it's atypical for the buyer to engage in the process of "cleaning" and preparing the house in preparation for a lender's appraisal.

Thank you both @Jerel Ehlert and @Andrew Postell!

We have an FSBO opportunity and have met with the homeowner. He wants to sell to someone who'll live in the neighborhood (which we will), so it's a great opportunity for our family. However, the homeowner is under the impression that there are restrictions in Texas that limit individuals selling privately... He says "they eliminated the owner finance recently unless you have a license".

Is this true? We'll be working with a mortgage broker, but I was under the impression that we could work directly with a homeowner + mortgage broker + title company w/o having to engage agents.

@Kenneth Garrett I’m curious, when you partnered with a seasoned investor for your first, what was in it for them?

Also will be very close to the Gigafactory.