All Forum Posts by: Asher Carr

I wanted to get some input on how to offer a wholesale offer on a home that's not really distressed or as o call "pretty". Little to no repair and ready to move in. Is wholesale only best for distressed properties or can I use it creatively and offer it like a normal buy? Thanks.

0 Votes

Looking to work with a realtor in the Marlboro NJ area on a rental. May need help finding a buyer.

0 Votes

Originally posted by @Jaron Walling:

Location, Location, Location. That's all that matters because people won't pay a premium for property in bad locations. Networking with more REAs in your area may be helpful too.

Thanks @jaron walling. I agree. The area itself is very wealthy. That is a good reminder to leverage that fact and make the home more presentable.

0 Votes

Hey everyone,

I am finalizing a deal for a lease purchase. I'm still working through the numbers but I need about $4000 a month to come in. I wanted to get insight on how to market this home to find and attract the right kind of teant/buyers at this price point. Thanks.

0 Votes

Originally posted by @Anthony Angotti:

@Asher Carr what kind of rate you have on private money and how open they are to then owner financing this to your client would be the first question.

It would need to be an exceptional deal for me to even consider this though. If he can't qualify for a loan based on DTI then you might be risking not getting paid yourself. If you owned the building outright your risk would be lower, but now you're getting into a loan to then give someone a loan. Once you analyze your actual return on this my guess is that your return would be very slim unless this deal is tremendous. You'd probably have higher return buying something on your own or private lending from a credit line to a more experienced investor with better financials.

I understand trying to do right by and help your client, but this seems like a lot of hoops to jump through. Unless this person is a personal friend or family and I didn't need the money I gave them I don't think I'd take this risk. I would just start looking for properties that this person can buy with owner finance without you being an intermediate lender. Or try to help them find a loan program that will work with their financial needs. Also, it may be best for them to come at buying a house from a stronger financial position.

Just my two cents, but how can you do it and should you do it seem to be two different questions here.

Thank you then the input. Yes. This Is beyond the scope of what my business offers. I'm still looking for FSBO homes for him that can work. He has a large enough down payment ($50K) and monthly payment of $2K to work with. It's just finding the right one for him. I wouldn't want to go through too much hassle trying to acquire a home and just GeT it under contract through terms with the seller.

0 Votes

Hi everyone,

I have a client who cannot qualify for a mortgage due to a huge amount of student loan debt and he is lookg toward me to provide an owner financing deal. Hes so motivatd to move to a new home, that he started to send me what hes looking for within his budget and we just found a home for him to live in. The home is on the MLS and I would have to go through an agent to get the property. I am in NJ but the home is in Massachusetts. Im not letting the distance be an issue because im also in CT and RI as well.

If anything, this would be my first deal and I want to cover everything I can to make to flow as smooth as possible. How should I buy the house as an investment so I can owener finance it out to my client? Should I use a convential loan to buy the property or use private money? I was thinking of putting a 30-year mortgage on the home, owner finance it for, at most, 30 years or maybe even less, until my client cleans up his credit enough to refinance the home later one. What should I except the process to be being out of state? Thanks in advance.

0 Votes

Originally posted by @Scott Hollister:

Hello @Asher Carr,

Welcome to BP!

Glad to see you are taking action by making offers. But make sure you have the capital to close those deals when you get one accepted, otherwise the agents will remember that you cannot close and will think twice about accepting your offer next time. It is a small industry and your reputation plays a large part in your success.

It terms of working with private lenders/lenders:

They typically like to see skin in the game (putting down 5-25% of the purchase price)
Experience: lenders like to see 2-5 deals in the last 12 months
Credit score not really a big factor, but still considered
Exit strategy: They want to know what your plan is for the property

My advice is to understand these numbers:

As-is Value
Repair budget
After repair value

There is no magic and the more you become an expert in your area, the easier it becomes to spotting a good deal and understanding the numbers above. Typically you have to build a track record first, then private money becomes "easier". Not always the case, but at first I used hard money. They lend 85% of the purchase price, 100% of the rehab, NOT exceeding 75% of the ARV.

And with private money, you can create any deal structure. My last one was financed 100% of all costs, purchase price, rehab, holding costs, etc. So I didn't pay any money during the project and the lender received the payout at closing. I offered them 10% fixed, whether we closed the deal in 6 months or 12 months.

The best way to educate yourself is going to meetings, talking to other successful investors, and reading. Check out Anson Youngs Book, I just finished reading it yesterday. I think it would be a great guide to help fund your deals.

Best of success!

-Scott

Thank you Scott for the great information. I definately need a better definition of ARV. More so on how to calculate it. Ive been using the rental property calculator on BP and its so cool to see how the numbers generate. This should help my understanding on how to present the deal to lenders and make things happen.

1 Vote

Hey everyone,

I wanted to get some feedback on questions I should ask RE agents before working with them on investments. Other than the tools they have access to, how do I know if I can trust them in looking out for my best interest? I want to expand my network and I know having an agent can be beneficial in my success. Thanks in advance.

0 Votes

He was actually interested in doing a 2nd mortgage financing method. To be honest, I didn't really understand. But on his last home, he sold it with seller financing, the buyer brought in a down payment and partial first mortgage and then the seller financed the remaining purchase price. But there was collateral on the buyer in case of default, which was a piece of his business. And it worked out. So I'm looking into structuring something like that. No interest was brought up.

0 Votes

All Forum Posts by: Asher Carr

Asher Carr has started 44 posts and replied 79 times.

Post: 21% ROI Turnkey! $320m CF, $16K down! Seller Financing Offered!

Post: WHOLESALE OFFERS ON PRETTY HOMES

Post: REALTOR IN MARLBORO NJ IN NEED

Post: HOW TO FIND HIGHER END BUYERS/RENTERS?

Post: HOW TO FIND HIGHER END BUYERS/RENTERS?

Post: CONVENTIONAL OR PRIVATE FUNDING FOR FIRST DEAL?

Post: CONVENTIONAL OR PRIVATE FUNDING FOR FIRST DEAL?

Post: LOOKING FOR FUNDING ON NJ & CT DEALS

Post: BEST INTERVIEW QUESTIONS TO ASK TO RE AGENTS

Post: OWNER FINANCING A $1,000,000 HOME- GETTING THE DEAL