All Forum Posts by: Adam V.

If you're only going by pictures/info on zillow you're only getting about 33% of the story.  If you've gone out and seen the properties and still have this question you might be missing things that a more seasoned person might catch like electrical issues, rodent infestations, foundation problems etc.. Or it could just mean you're willing to do more work than the typical investor.  Most important thing for you is to get a knowledgeable agent's opinion on comps in the area you're looking.

You have to be careful if you are a sole member of the LLC. If you don't follow strict guidelines to create clear and demonstrated separation between your personal activities and your business activities you are exposed to the LLC being viewed as a shell entity and it will not provide you the LL that you seek. There are some great articles and youtube videos from tax/corporate attorneys explaining how to protect yourself. When in doubt grab an umbrella.

@Stacey Paulin Glad to help!  A quick update on this is the seller has some sort of situation where the mortgage is paid directly out a medial spending account and cannot be terminated without a sale, so i'm changing my offer to conventional.  Having no control over whether the mortgage gets paid is just more risk than I will take.

I will say when I started this I was under the impression the seller owned the property free and clear, I didn't seek this type of deal out.  Mainly wanted seller financing.  Good luck on your deal!

Turnkey, in my area, usually means lower CoC unless you manage to get a great deal. CoC is all about the deal and folks with turnkey properties are typically going to ask for market value.

I shoot for minimum 30% CoC; anything less is not worth my time or my capital.

@Alexandra D. hit it on the head.  A good relationship with a few agents is huge.  Make sure they know what you're looking for and be clear that even on creative deals you can cover commissions.

Technically you don't have to pay the commissions, the agent's contract is with the buyer not you.  That being said, if you plan to do this a lot in your community and want agent's on your side (and trust me, you do) then I would pay the commissions.  I would pay normal the 3%.

@Steve Vaughan Good point.  I will technically have 14 months built in because the title will pass to me in Nov at close but my 1st payment on the financing agreement won't start until Jan 2017.

If I'm able to close this deal i'll report back as to what type of deed we used.  The lawyers are hashing that out as I type.

@Steve Vaughan Thanks, I didn't consider the seller could hold the LL policy and name me as an additional insured party.

Property came to me via an agent I work with, I didn't want to go traditional route due to high closing costs and a high tax pro-rate so tried to get creative.  The price I'll pay will give me 35% equity instantly but I need 12 months title seasoning to do a cash out refi which will basically return my initial investment.  

..best to have cash on hand as Peter suggests