All Forum Posts by: Adam Zach

@ashraf there is a local real estate group that meets monthly that Lee and Jason put on. There is a facebook group and I know Erik Stewart is always mentoring folks.  I live in fargo as well.  Good luck!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $341,505
Cash invested: $30,000

Bought a new construction home and have a tenant moving in day 1 to cash flow 20% CoC ROI.

What made you interested in investing in this type of deal?

tenant day 1

How did you find this deal and how did you negotiate it?

Found the tenant first, property 2nd.

How did you finance this deal?

commercial loan 5/20 at 8%

How did you add value to the deal?

tenant day 1 on a lease with option to buy

What was the outcome?

ongoing....

I would not say illeagal. what two parties are on for a sale of home is 1 thing. Appraisal will likely be the kicker if buyer is using traditional financing. Oftentimes we use a set price with an escalation of 4-5% per year.

I noticed you put this in the Rent to own aka lease option thread. Is that what you are considering?

seems logical. my thoughts
- can you get Private Money to Extend and still sell?
- If you go DSCR route I would watch for prepayment penalties if you are looking to sell as I see a lot of 5,4,3,2,1 which can be tricky
- Lease Option vs normal rental is a whole other strategy in itself but I like LO as they tend to me more profitable.

Good luck

1st figure out if a Lease Option and the deal makes sense. Can you share more?

Otherwise key items are
- Term length (how long you have)
- Purchase price (set price or changes?)
- monthly payments (credits or not?)
- Option fee (you want this low)
- repair/maintence responsibility
-Tax/insurance responsbiliity (typical still seller)
- what happens if you or seller default? (e.g. do they have a mortgage?)

this is doable just make sure the numbers make sense.

 "hottest" I am not sure but HPOA is pretty big and seem to be buying in these spots. https://www.homepartners.com/how-it-works/communities

 Could be based on a future appraisal price, get an appraisal. The big companies like Home Partners of America do a 9% increase year 1 followed by 5% increases each year after that (note they are in top 40 metro markets). 

 in terms legal professional. You probably want someone close to the subject property should anything happen.  LEGAL DISCLAIMER use one i had drafted a few years back at your own risk. Not legal advice but hopefully it will help. https://drive.google.com/file/d/1vNn5lGVvZnpkcMi7iQuurRNDq0p...

no one specific but each time we do a new state we simply google real estate attorney near "XYZ". Note the more metro you go the higher the cost (typically). I would also find one that has done it before and has a blank document that they give you at the end vs just a PDF.