All Forum Posts by: Adam Lang

@Michael Spindler From my understanding you can only foreclose on someone during an owner financed transaction. During a lease option you can evict the tenant if they are not paying but if they can come up with the financing they can still purchase the property at any point. This is because the lease option is two separate contracts, one for the lease of the property and another for the option to purchase it. I am not an attorney though and you may want to discuss it with a lawyer, every state has different laws and different contracts. 

I recently had a motivated seller contact me about a small house in a small town that she desperately needs to sell but I am having a hard time determining how much I should offer. There are only 2 properties sold the past couple years within a couple miles of the property and the sales prices were about $30,000 different. On top of that, the house is on the main highway that runs through the town and it is a somewhat busy road. This seems like it would be hard to value and may not see as much appreciation as houses off of a busy road. The house needs about $15,000 in repairs but I'm not sure of the ARV.

Curious on thoughts if I should just run away from this one or at least put in an offer even if it is really conservative. The lady is having health problems and really needs to sell the house which has been listed with a realtor for almost a year. I would like to at least give her an offer to consider even if it is lower than she wants. Thoughts?

@Harry Maxtens You could always use it to rent out the property using Airbnb.

@Daniel Dietz I have been looking for a partner who might be willing to do something like that. Do you know anyone who is currently in the position to do that?

@JD Martin I have already spoken with one mortgage lender and they told me I could have a second loan on the property as long as I can still show that there will be positive cash flow. But looking at some deals I found it would hard to have positive cashflow if the second loan was higher than 8-10% interest rate.  

I am looking to purchase a few duplexes for rental properties and should be able to get the loans to do them but I don't have enough to cover the down payment. What is the best way to still be able to purchase the property. My thought was to offer other potential investors a note to cover the down payment and then pay both them and the bank on a monthly basis. Is this something other investors would do/be interested in? If so any ideas on interest rates?

@Daniel Ditto First, self promotion is generally not allowed and each new post gets approved before it is published. I am not sure how well the following discussions are moderated since there are so many. I think as long as you are trying to add value to the community your post will be alright. I would just say don't post or do anything that is dishonest or disrespectful and you will be fine.

Second, I have found all the calculators super helpful for quick analysis of a property. The forums have also been super helpful for the not so common questions that you can't just google. 

Third, there is a marketplace where you can find deals but some smaller local markets don't have anything listed so if you are trying to invest locally you may not find any deals there. Otherwise I think it is all good stuff. There isn't any other site that has this much info. 

@Donald Lidster In my opinion if you are going to be doing a lot of flips together my recommendation would be to form a company and determine how much equity each person will have in the company. If it is just for one or two deals than I would say this would just complicate things further. If it were me I would try to limit the ownership of the property to one or two people and hire employees to do the work. Four potential owners just sounds like a headache to me. 

@Zuriel Castillo The lower the better but at the end of the day it is all about making sure your return on investment is better than the rate you are paying. Even if you have to pay 10% it would be worth it for a deal making 15% as long as you stay on the conservative side with your numbers. 

When looking to buy a rental property that already has tenants in place, is there any way to confirm that the tenants are current on their rents and that the seller isn't looking to sell because they don't want to deal with the eviction process? How likely is it to buy a rental property and have to evict the tenants the first month for not paying rent?