All Forum Posts by: Francesco Barbati

@Francesco Barbati , do you think you could find a SFH that is at a good price, in a good area that needs a little TLC? You could "house hack" where you live in the house while fixing it up and then sell after 2 years at a profit. You won't be taxed on the gains from the sale and can leverage those gains to buy other investments or do the 2 year fix/flip again, etc.

In response to the 10% interest rate, not sure that's correct, seems to be 0% interest and considering the time value of money, seems like it's actually negative interest. This person lending you the $120K seems to be losing money here. Anyways, the answer to what you "should" do really depends on a lot of circumstances, those with the most weight relating to what you and your wife personally/financially want. If she's on board with you, it might be a good idea to get a 2-4 unit place, live in one, rent out the other 3. If you find a great deal on a SFR, may go for that, however note that we are seemingly at the height of the market, or at least not sure it has that much run left in it, so be somewhat wary.

@francescobarbati  I just started talks with JWB today.  I can keep you in the loop on how it goes if you like.  send me PM.

@Francesco Barbati

Besides price, ask what is the seller looking for? flexibility to move on her schedule? Taylor your offer to her needs, and she might entertain a lower cash offer from you.

Since you're also dealing with the listing agent, you might have an advantage over the others as long as it's a win/win situation for everyone. 

What if you are competing against other cash offers?

Some people - especially older people who have lived in the home for a long time - get sentimentally attached to their property, and can give preference to someone who's going to live in it over someone who is not.

It can't really hurt, and if you get the property, it's totally worth it. Just make sure to tailor it to the property you're making an offer on.

Just my 2 cents, I think your family intend to lend you to buy a primary residence, then do that. If you are going to invest in something else, like duplex or BRRRR, then make sure to let them know how you are going to do with the money, I think it's a respect thing. And best wishes to your journey no matter what!!

@Francesco Barbati

@Francesco Barbati just be careful and definitely do your research when it comes to Philly.  I live close and its one of those areas that are block to block.  Being that you would be an out of state investor, I would just really make sure you do your due diligence.  

I don't want to scare you though because Philly has a lot of nice area's along with a big push for gentrification within some of the less desirable areas.

I believe David is WRONG about his "10% interest" comment. Rather, it IS "0%" if after 120 months, it's completely paid off! ie. $12k paid in year 1 results in $12k off the PRINCIPAL, etc!

Regarding the suggestion that was put to you to use the $120k as a DEPOSIT on something more expensive, that'll only work if Lenders don't care about it being already 100% FINANCED!

Q. How much of your OWN additional funds can you bring to the table to impress Lenders with?

I agree with those who suggest you ONLY use the $120k for the purpose it was loaned to you...

@Brian Garrett and @Francesco Barbati... the premium in Boca Raton is due to the schools systems. Check out the school ratings over any of the areas you're looking in and you will see the difference.