All Forum Posts by: Benjamin Z. Pickens

@Shiloh Lundahl

And anyone else who may be interested/intrigued.

I presented the tenants (who didnt want to/ couldn't get financing) with the terms of a lease with option to purchase.

Explained to them I would be as helpful as possible in assisting them in getting a loan.

GO, figure they are calling the bank this coming Monday to see about financing.

Just thought it was interesting that they originally were opposed to financing (understable) but now all of a sudden they arent.

Can someone clear this up for me or confirm my understanding?

Is this how transactional funding works:

1. Secure a contract for $50k.

2. Secure Transactional funding at say 2%

3. Secure buyer (not sure how to do this if legally I can't market a property I do not own) with purchase agreement to buy property for $75k.

4. Close with seller using 50k plus closing costs (2k) for a total of 52k from TF.

5. Close with end buyer. $52k(+$2.6k for interest) goes to TF. The rest ($20.4k) is profit for investor.

Am I understanding this correctly?

@John Marchi

Thanks for the insight. I do want to sell but on my terms. That they are decent teants rent is sometimes late but they pay every month. They just seem like the kind folks that could get financing but are also the "we don't trust banks" type. We will sort it out.

@Todd Rasmussen

Yeah. I need a cost effective way of obtaining documents. As mentioned before I just dropped $500 on a doc with a local attorney. He does good work and I am satisfied but dropping that much everytime I need a legal doc is crazy. I recently stumbled upon rocket lawyer due to an old blog post from Brandon Turner. So I might give that a go for a moth or so to see if it would be worth while long term.

@James Wise

Thanks, short of seller financing that may be my only other option. Would you happen to have an recommendations for getting a sler finace contract somewhat easy and inexpensive?

@Shiloh Lundahl

Gotcha. So, the initial down payment(20k) doesnt go directly to the preexisting mortgage? Is it in escrow or...? I guess I'm just curious how you were still able to use that 20k to foreclose plus rehab if it was a down payment towards the purchase price. You are welcome to DM if you'd like. I'm trying to learn as much as I can in the investment world. I also look forward to hearing from your friend James or any investor in ohio. Perhaps some contacts for educating me on certain contracts. I just paid $500 for a local attorney to draft up a Lease Option contract. I may need to see about getting a seller financing contract as well but having to drop that amount of cash when I need a new contract seems daunting.

Thanks everyone for your responses and insight.

@Shiloh Lundahl

Are you just taking a balloon payment periodically and then renewing the lease? (I thought of doing this.)

Currently I owe just over 82k. Tenants recently had it appraised at 83k and are willing to pay appraisal. PITI is $693

@Erik Whiting thanks for the insight. I agree that it's best that unless they have finacing they shouldn't be making changes to the property.

I think that it may be necessary to reevaluate my strategy and lean towards seller financing. Is this possible to do even with an existing mortgage.

I am relatively new to all this and just wanting to get as much insight as possible. Also I am in Ohio if that makes a difference.

Thank you. Anything helps at this point. They are not bad tenants. It's just not beneficial for me to manage the property at this point and there arent any reputable PM companies in that area. (I tried one in the beginning and got burned) 

 Yes. I have considered seller finacing for the cash flow. However, I am leaning towards the lease option for the option fee to gain some capital for future deals. Is it relatively simple to structure seller finacing? Is it something I could do myself and take to the county office? 

Currently, I have 1 rental property that has a mortgage. The tenants are eager to own the property as there are upgrades they would like to do. I am working with them on a lease option. The catch is they seem to refuse to get a loan. They have great income and no issues paying rent. They have newer vehicles which is indicative of good credit. At this point I believe it's going to come down to forcing them to get the loan or move out during the lease period. 

I just wanted to see if anyone else has dealt with this and if so how did you handle it? 

I purchased my home using a VA loan in 10/2017. Just over a year later I went through some personal issues and relocated thus renting the house to tenants. Tenants want to buy the home and are unable to get or are otherwise not interested in bank financing. (Lease Option is out)

I have talked to my mortgage provider as well as VA Professionals who both advised that I would be able to sell the home how I choose so long as the payments are made on the existing mortgage.

Any suggestions on selling stragety would be super helpful. Thanks