All Forum Posts by: Adam Meadows

@Allen Thomas email sent.

I have two vacant lots for sale in Mableton (30126) and Smyrna (30080).

• Mableton: 1.2 acres for $33K
• Smyrna: 0.13 acres for $12K

Priced to move quickly. Both are zoned residential. Please send PM or leave email below if you're interested in more information. Thanks!

@Steve Vaughan point noted, sir... :-)

@Brent Coombs you're exactly right. If I were to wholesale, I'd get it under contract for $70-72K for a $3-5K assignment fee for myself. But to your point, the rehab numbers have to be airtight (with a 10% cushion or more). 

I appreciate the education from both you guys. Clearly there's something to be said for 67 posts vs. 4,000+

Thanks again!

@Steve Vaughan very helpful again. Yes, I think a security deed is similar to a deed of trust. Here's what I copy and pasted from a website: "A Security Deed can have many names. In some cases, it's known as a Deed to Secure Debt, Warranty Deed, or even a Loan Deed. It provides a full and direct legal title transfer from the borrower to the lender, leaving the equitable title with the borrower. The lender then provides the loan. The borrower makes payments, and until the payments conclude, he or she retains only the equitable right (a legal right guaranteed by equity, not from another legal source). During that time, he or she keeps exclusive right of possession and the right of redemption, meaning that the lender cannot sell the property's legal title unless the borrower defaults or they agree on the sale."

@Brent Coombs thanks for your perspective. I see now that this deal, as I presented it, doesn't meet ideal terms for seller financing. I guess my question still remains is there any deal to be had here? Is $95K all-in (purchase plus rehab costs) a "good deal" for a property with an ARV of $140K that will rent for $1200/mo for a buy & hold investor? The all-in cost is less than 70% ARV. And just to be clear, I'm NOT saying $75K purchase + $25K financed + $20K rehab. Just purchase and rehab.

Separately, I'm open to any resources either of you recommend to learn more about seller financing. Thanks again.

@Steve Vaughan thanks so much for the feedback. Your insights are very helpful. I am hoping to structure this deal in a way that appeals to a buy & hold investor because of the location and rental market. It would be structured as a security deed and a note. The house needs a decent amount of work, so I know that complicates things in terms of timeline to get it rent-ready.

One problem is the seller is looking for a sizable amount of cash. I don't think he would go for anything less than 50% down based on the numbers in this deal. Perhaps there's an angle to negotiate down further on the purchase price to buy him outright.

If a seller financing deal is still on the table, what length of time makes sense for the financing?

Hi Folks,

I'm looking to structure my first seller financing deal on a property I'm going to see tomorrow. I know the seller from an open house when his property was listed. It didn't sell, and he reached out to me a few days ago to work out an off-market deal. Here are the details:

Property: 3/1, 912 sqft, 10,000 sqft lot, built 1950's

ARV: $130-140K

Asking: $100K

Repairs: $20K (estimate)

Rent: $1200/mo

The seller owns it free & clear and wants at least $70K down. He hasn't mentioned anything about interest (and I'm not going to bring it up unsolicited). So here's what I'm thinking:

Purchase price: $95K

Downpayment: $70K

Cash flow: $800/mo

COC return: 10%

Terms (Financed amount $25K): 24 mo, 36 mo, longer? Fixed monthly payment ($200-300/mo) with balloon at the end? If he asks for interest, what's a reasonable rate (5%, 7%)?

My strategy is to wholesale this deal to an investor in my network. Thanks in advance!

@Evan Stalcup sure thing! I'll send you a PM.

@Philip Bashaw Congrats! What an exciting opportunity. I'm inspired by your ambition, and I hope this leads to more success than you can imagine. I look forward to hearing updates along the way!

@Arriston Worthy @Jamaal Hadley email sent. Good luck!

I re-ran the numbers as a rental, with a lighter rehab and more conservative ARV ($175K). It will cash flow well ($750/mo) and the property values are increasing in this area. They just rezoned the north end of this street for 36 new townhomes. Let me know if you're interested! [email protected]. 770-282-4527.

367 Roselane Pics and Info