All Forum Posts by: Barima Opong-Owusu

Rob another option would be to search Craigslist daily looking for FSBO sales. A lot of time these sellers will want an amount that takes it out of the range for most investors. If you can get understand their situation you may be able to offer the seller a quick close once you have targeted your buyers. You can also try negotiating the terms with the seller to make the deal more attractive to an investor.

@ScottWeaner the HELOC would be from my primary property since getting the loan puts me close to the max LTV they lend at, they said the rate will end up being higher. this was thru Huntington Bank

@Dave Savage great point that will probably be the route I have to take.  If I can get a family member to (gift) the funds to me then I would still be able to get it in my name correct?  If thats not possible then most likely it will be the partnership route.  Thanks for all the suggestions.

@Bob Green The property really doesn't need a lot of rehab its in very good condition. It would only need a refresher new paint and carpet and a good cleaning. The property has tenants in place that take decent care of everything. My concern with using a HML is that the points and interest will destroy the cash flow.

Using 100% financing with 80K financed at 5% over 30 years (conservative estimate) and 25K financed at 7% interest only for 3 years.  It works out to cash flow $200/month using conservative numbers for property management, repairs, maintenance, and cap ex monthly.  With the desired rents mentioned above it will cash flow well over $600 per month.   I don't think with hard money it will still be as good right way, but I have analyzed that option.  I'll run those numbers and see what I come up with.  Good idea

@Paul Jamgotch To answer your questions

Duplex property each unit is a 3bed/1.5bath which is rare

Total purchase price would be $100,000 with closing costs

Rehab Costs: $5,000 (property is tenanted an already updated to some extent)

Current Rents: $800/unit

Desired Rent: 900-100/unit (market for area is 900-1050

Tenants currently pay for water, gas, electric and are responsible for yard and snow removal.   

I'd like to have an investor partner or lend for 25% and I'd use that funding to obtain a conventional mortgage for the remainder.  The investor would have 25% equity and still get paid interest on his loan until I could refinance and cash them out.  Ideally 2-3 years.  

I have a duplex that I'm looking to purchase for buy and hold and I'm considering a conventional loan vs private money.  Are there any private lenders that finance residential deals in Michigan?  I'd be interested in discussing it with you.  

Ok so I'd like to hear others suggestions for  any other options that maybe I didn't think of for financing this deal.  

I'm currently negotiating a duplex home. Purchase price will be right about 100,000 maybe a little less. The owner owns it free and clear but given her age she is not interested in seller financing and wants to be cashed out. The each unit is currently renting for $800/month which is low for the area. It can and should be getting in the range of $900-1050/month. I've done the analysis and given the current rental numbers it would still cashflow using conventional loan for 80% and using a HELOC to supply the down payment at 8% for the remaining 20K. This would be my preferred option because the interest and payment rates will be the best for the cash flow.

Options I'm looking into:

1) Getting a private lender to supply 25,000K at 8% interest only for 3 years then refinance and pay off the 25K (is it possible to do a 80% conventional loan with private lender providing the down payment?)

2) Getting a partner in on the deal but not sure of what equity or cash flow split.

I'm sure their are other options I'm missing but if anyone has any good suggestions I'd really appreciate it?  

@Kyle Kufeldt thanks for the info.  I will try to keep it to a month.  What type of mailing piece do you use.  I typically use postcards for all of my absentee mailings, but I feel like with probate it should be a letter.  Would you recommend a handwritten letter or a more formal typed up letter with the window envelopes?

@Rick H. 

 in my city the list the new probates online.  I'm looking to get serious about farming this list on a consistent basis.  How far back should I start?  I don't want to start too early in the process to where it may be months before they are settled and can sell, but I also don't want to be late to the table.  Any thoughts?

@Josh Norris thanks for the info, that helps alot.  One thing I was trying to avoid is having to spend so much time at the courthouse.  Since I still have a full time job its not always easy getting down to the court house during their limited hours.  I appreciate your help.

Your right it would be nice if some of the others doing a lot of probate deals would chime in on their strategies or what's been helpful for them.