All Forum Posts by: Adam Germany

@Jim Viens thank you for that information.  It was very valuable.  The homeowner now actually is working to acquire a traditional mortgage from a bank to payoff the original owner who holds the current mortgage.  Once she acquires that, this makes the deal more of a traditional wholesale, because she would be on the deed instrument with the bank .  Now I just need to market for buyers in her area.

A new challenge.  

Thanks again! 

Hey BP Family,

I have a homeowner that I am working with that wants to sell her house, but her name is not currently on the deed instrument.  She agreed to purchase the house on a 10 year mortgage which the original owner is currently holding the note.  

So my ultimate question is:  how can I structure this wholesale deal/contract to get it to a closing to ensure that the end buyer that they will actually receive the property upon closing?   

I hope that this information is clear, let me know if more information is needed.  Thank you in advance for your professional opinions and advice.  

Adam

Hi John,

It sounds like your company is doing amazing things, and has some solid goals! Congratulations!

If you could send me more information about your process, I have a fix and flip property under contract that has a 44% - 64% return on investment. I think we might be able to work together and make achieve mutually beneficial goals.

I look forward to connecting with you.

Adam N. Germany

Welcome Zac Gilliam! Congrats on joining the BP family and having your first rental property! I am a newbie RE investor as well. I currently live in Colorado, but I grew up in Huntsville and my parents still live there. I'm looking to establish and grow my real estate business here in Colorado and then look to expand into the Huntsville area (fix and flip for short term goals & buy & hold for long-term). It is a very unique market, with much untapped potential, I believe.

Best of luck to you in your REI endeavors!

Hey Aaron Mazzrillo that is great advice. You've just given me a new tool for "negotiating tool belt". I'll take a closer look at my numbers and see if I can restructure a better deal.

Hey Aaron Mazzrillo that is a creative way to structure that deal!! I didn't think about the balloon piece. What exactly do you mean by:

"Fix up for down or 10% down"?

The $20K btw is for retail.

I greatly appreciate the feedback, its very helpful.

Steve Babiak thanks for the clarification. Somehow BP posted my reply as Ray Cokran. I don't even know who that is. At any rate...

* Makes total sense on the monthly rent piece. Not at all a good selling point, unless there are lower payments. The property is located in a vacation market so it would probably make more sense as a vacation rental, which is a whole different ball game and mess of problems.

* All I can do is ask, the worst that could happen is that I'm in the same place that I am now, without the deal. If he's motivated to sell, he will. If he isn't then he won't, right?

* Same as above, keeping it as a monthly rental isn't nearly as attractive because of the size.

Thanks again for the wisdom, you've totally given me a fresh/new perspective.

Hey Jon,

Thanks for the reply! I won't continue conversation about wholesale with seller if he won't budge off of the $130K. I'd only want in under contract at $85-90K MAX! So it would be $85-$90K + $20K = $105-$110K for which you're in the deal. The ARV is $150K so there is $45-$40K of profit still available. His house had been on the market for two years and it has no curb appeal and it's outdated. It NEEDS the $20K in updates to sell. Even if I don't buy it, it won't sell in this area without updates. So he could be stubborn and stay at the $130K but he'll be holding that house while doing so.

With regards to the seller financing piece, you are right, he would only receive $126K in payments. Another of my many rookie miscalculations. Thanks for the helpful eye! :). The note would have to have a 4.5% interest rate for him to get his $130K. As mentioned above because of the updates needed, that is the closest he'd get to his $130K asking price.

Thoughts???

Welcome to the BP fam Jeremy! Congrats on taking action!

I spoke about this deal in another post, but I have an update. Below are the details:

•860 Sq. Ft. Lake-view Cabin
2/1; open Kitchen-Living Area
•$900/month rental potential
•Owned free and clear
•$150K ARV
•Seller wants $130K
•Needs closer to $20K in repairs
•In order to wholesale, I need to get it under contract for under $85K. First goal is to sell him on that.
•If seller doesn't accept traditional wholesale, plan B is to do seller financing (see below):

$100K Selling Price
Seller holds note for 15 years
$5K down
$700 monthly payments
$900 monthly rental income
Owner would still net $130K (his initial asking price) through interest payments over 15 years by holding the note.

Would this be an attractive seller financing deal for you seasoned investors out there if this were in your market? If not, what would sweeten the deal for you?

As always I appreciate all honest and productive feedback and comments. Thanks in advance for all of your help BP fam!