All Forum Posts by: Andrew N.

@Sarah Lam - Hey Sarah I should be able to make it on the 11/18 at 6:30. Thanks for the heads up about the reschedule!

@Sarah Lam - Hey Sarah. Sorry to hear that your property was sold but I'm sure you'll find another great property soon.

Do you mind sending me the name of your Turn Key provider as well? After @David J.

@Bill Gulley

I actually fully intend to consult a RE Lawyer (as you recommend) in order to draft any sort of installment deal. I agree with you that it would be foolish to attempt to create a deal like this for the first time without expert legal council. I was merely looking to do as much homework as I could ahead of time so that when I talked to them I could ask a list of intelligent questions, rather than pay a large hourly rate for them to teach me the basics I should already know. I realize this wasn't clear in my initial post.

I believe in being an educated consumer rather than just showing up without a clue and asking a lawyer to create a financing agreement with no idea what I am looking for. I'm trying to determine what terms make the most sense and are the most standard along with any key things I should be aware of in order to do this type of deal. This way when I talk to the lawyer I will have a better idea of what it is I want.

I am also trying to get familiar with the basics as much as possible before discussing the options with the seller. You make a great point about needing to be seen as the expert in the room. This is exactly why I am asking for resources to read so that I can become the expert and so that I know how to discuss the topic intelligently.

I also didn't mean to say there were no books on installment deals. I was just asking if this topic has been extensively discussed in a thread or forum post previously that I could reference in my research. I would love to read a book on the topic of installment deals if you had specific recommendations on what to pick up. The problem with randomly picking something off of Amazon is that the reviews are often faked.

You also mentioned being able to make a note dance to any tempo. Do you have specific recommendations on when each of the different terms you mentioned would be most advantageous for solving different specific problems (ie. Split principal, Partial Balloons, etc.)?

What are the best ways to make the end loan marketable for the seller? Are there certain generally accepted Loan Terms that are required in order to make a loan marketable? Are there other requirements to make it marketable? You mentioned showing the loan to a Mortgage Broker and to a Note Buyer. Do you consider this the best way to determine a loans marketability?

Your loan package suggestion makes a lot of sense and is great advice.

UCC Filing is also a useful tip to keep in mind if there is any private property that would be included in the sale.

Thanks again for any feedback!

@Sarah Lam - Hey Sarah. Unfortunately I can't make 11/13 either. I have prior plans that evening. Please let me know about the next one or if you happen to change the date to another time in November. Thanks for organizing again!

I was wondering if there was a definitive article/blog/forum post that summed up the exact process for creating a seller finance deal. I've searched the forums and there are a number of "Pro/Con" type articles but fewer with details on how to actually structure the deal. I realize the deal can be as complex or simple as you want but I was hoping to get a list of best practices or pitfalls in terms of setting up the terms. Basically is there an A to Z process other than just "consult with a real estate attorney"?

Also are there any good threads that outline the advantages of deferring Capital Gains Tax using an Installment Sale (Seller financing) for a low income retirement age seller?

In my case the default risk is assumed to be very close to zero with high credit individuals who are related to the seller.

Thanks in advance for any feedback.

@Account Closed - Hey John. I'm also from the SF Bay Area and I've been grappling with similar issues in trying to determine the markets I'm going to target.

Personally I am looking to get rehab experience in CA so I can get experience turning distressed properties into retail worthy properties without adding the learning overhead of rehabbing virtually.

From there I'm planning to renovate distressed properties for buy and holds out of state for cash flow purposes because as @Mike D'Arrigo mentioned cash flow in CA leaves much to be desired.

Also there are a handful of San Francisco Bay Area BP'ers who have started meeting informally to network and exchange ideas. I've included the link below in case you are interested in joining us sometime. We've only met once so far but it was really educational that first time. I believe @Sarah Lam is planning on having another one sometime next month.

http://www.biggerpockets.com/forums/86/topics/102248-san-francisco-meet-up

@Cory T. - Welcome to BP Cory. Nice looking AirBnB condo. I may have to plan a vacation to Palm Springs =).

I see you hopped onto the SF BP meetup thread Sarah started. Hopefully we get a chance to chat next month. I'd love to hear how your vacation rental journey is going. I've been interested in the AirBnB rental model for a while. I have a couple of friends who have gone that route and I'm curious about your experiences.

@Andy Wong - Hey Andy. Have you had any success virtual wholesaling based off of your training yet? One aspect that concerns me is that I definitely want to transition into rehabbing (with an experienced partner) as soon as I feel I am accurately estimating ARV and Rehab costs. I'm not sure if virtual rehabbing is also something I should tackle early on. What has your training said on the subject of virtual rehabbing? Would you recommend any of the material you have been studying?

@Andy Kaufman - Hey Andy. Sorry for not getting back to you sooner I didn't see your reply until now for some reason. Where in Berkeley are you building your co-working community? Is it a Next Space type of communal office or is there more to it? How many members do you currently have working out of the space? I'd definitely be interested in checking it out given more details. Do you guys have a website?

@Sarah Lam

Thanks for organizing. It was really educational and great to meet other SF BP people. Looking forward to next month!

@Johnson H.

You definitely didn't talk too much. If anything we all couldn't stop asking you questions. Your insight into virtual investing and commercial RE was extremely helpful and much appreciated.