All Forum Posts by: Andrew McGuire

Zak

As the borrower? I have not heard of needing one and have not used on my own personal loans. Typically you want to do the lender right and secure a lein on the property. 

Why 280K, is there an option to look at a little higher price point getting creative with the financing of? 

 How you finance the sell/purchase. Anything not using a traditional lender/loan could be considered under the creative finance umbrells. 

I get that but I have a hard time paying rentals after realizing how much wealth was built by owning many properties from 2018-2021. When appreciation hits you’ll want to own 20 properies not 1 or 2 that are paid off, as long as there is Cashflow and you have a reserve own more props 

whatever you do don't pay off the 3% loan. Are you in a position where you can house hack a new buy. If not I personallly would look for a seller finance deal. Having a very hard time making sense of #'s on anything that is not house hacked or seller finance. I guess you could find something in Phoenix where they are making it easy to add DADU's, I have  a friend who built Shed/DADU for 70K including everything and rents for 1400 which makes the property cashflow in addition to rents from main house. 

Last year when my family purchased our new primary residence it was a struggle to go through the lending process and just barely were able to qualify. I thought this was a little crazy because yes I quit my W2 job just 10 months earlier but also had a 8 property rental portfolio so didn't think that it would be an issue to qualify for a new primary. Turns out the rental properties as well as no longer having a W2 were bigger problems that I initially thought. Anyways I'm glad it was difficult because that is when I decided to explore this rapidly growing strategy of acquiring real estate, Creative Finance Real Estate. 

I decided to give it a try and acquired a couple for myself and sold a handful for others. He's what I've learned. 

5) Seller Finance transactions are way simpler and cost efficient than buying/selling traditionally. 

4) Because of #1 anything sold on terms will sell at a higher selling price with many more interested buyers. 

3) There are way more buyers on the market looking for Real Estate than qualify for loans. Its been eye opening to see how many people that are out there that want to own Real Estate but for many reasons could not qualify. 

2) Seller finance Real Estate has many more ways and options to make money by owning Real Estate than conventional selling/buying. 

1) Price is not even top three of what is important to a buyer when buying on creative finance. When I speak to off market sellers in attempt to buy their home on creative terms, they also say things like sure, for $1 million. I couldn't restrain myself the first couple of times so I replied, okay I'll write it up. $1M, 1% interest for 80 years amortization. My payments will be $2000 for the next 80 Years, deal.

whatever you do don't pay off the 3% loan. Are you in a position where you can house hack a new buy. If not I personallly would look for a seller finance deal. Having a very hard time making sense of #'s on anything that is not house hacked or seller finance. I guess you could find something in Phoenix where they are making it easy to add DADU's, I have  a friend who built Shed/DADU for 70K including everything and rents for 1400 which makes the property cashflow in addition to rents from main house. 

Mesa has been very good to me. I like to look for the homes built 30-50 years ago, usually less HOA restrictions and opportunity to force rents up, specifically exterior entrance, garage conversion or add casita. Most bang for your buck in Mesa.

Cash for keys unfortunately has been my best strategy. I would probably let them know we can do this the right way or you'll be forced to turn in the docs to the court. But let them know either way they are going, just depends how.