All Forum Posts by: Brandon Bell

@Jeremy Greenamyre

That’s a great suggestion—I do plan to explore whether seller financing is an option, but I have low expectations on that front. The sellers are a younger couple, not involved in real estate, and are looking to buy a primary home in Kentucky, where they’ll be relocating.

I also have no prior experience structuring a seller financing deal, so I’m unsure how to craft an offer that would be appealing to them. As an early investor, I know these types of transactions come with nuances that I’m not yet well-versed in.

This is exactly why I’m looking for ways to connect with others and seek guidance on navigating options like this. Appreciate the insight!

@Jules Aton
I really appreciate your response—thanks for the insight!

For transparency, we have north of $70K available to work with. I've considered index funds, but I’m hesitant to tie up the cash there given recent market trends and ongoing recession concerns. While our HYSA has been competitive, rates have now dropped to 3.9% APY, the lowest since we moved the money.

I'm currently looking at short-term Treasury Bills as an alternative since recent rates are over 4%, offering a solid balance of liquidity and return. My goal is to keep the cash as accessible as possible so we can jump on the next real estate opportunity—that’s where my passion for investing really lies.

I also set up bi-weekly principal payments ($75 each) on the 7.5% loan and have considered increasing that amount. Your comment on this gives me more confidence in that approach. I also had similar thoughts on potentially using the cash as a down payment on my neighbor’s property if the deal makes sense.

Thanks again for your advice! I appreciate your feedback.

I currently own a 2BR/1B in Shawnee, KS, which was my primary residence in 2020. It’s under a conventional loan at 3.5% (woohoo!).

In late 2023, I moved into a 3BR/1B in KCK, which is now my primary residence, but it’s under a 7.5% conventional loan (ouch). I'm considering moving out and converting this home into a rental.

Additionally, some neighbors are looking to sell their townhome, which could be pose an off-market opportunity. Both properties are in a market I like, and I’m encouraged to expand my portfolio.

With many paths to consider, I want to make the best strategic decision. I have a good amount of cash parked in a HYS and equity in both homes (more in the older one).

What’s the best way to seek guidance on my next steps? Any advice would be greatly appreciated!

The massive battery plant being built there has driven the local work force up and injected crazy demand. My plumber told me he has a rental in De Soto and the tenants are paying cash... It's a home close to the battery plant and the demand for housing for construction workers is there. I often wonder if the current demand will lessen once the plant is finished, but then consider the plant will ultimately need employees too. Will be interesting to see how it plays out.

I've owned a property for four years with a standard fixed-rate mortgage, and now I'm looking to convert it into a rental. My goal is to transfer both the deed and the mortgage to an LLC. My main concern is how to avoid activating the due-on-sale clause when transferring the deed. I'd like to keep the current fixed-rate mortgage in place and, if possible, have the debt transferred to the LLC as well. Any advice on how to navigate this?

I’d appreciate any feedback from those who can offer advice, but I’m also curious about what specific type of attorney or local resource I should reach out to for guidance.

I’ve seen references to the Garn-St. Germain Act and using a trust for subject-to approaches that may work for this kind of transfer, but I’m not sure it totally applies to my situation.

What kind of attorney should I be looking for in my area to help me with this kind of situation?

@Tom S. The difference there being... If I can assume the loan, then the debt is removed from his name vs. if I make loan payments he is still tied to the debt. Is that correct?

Through previous dealings I understand that when getting a loan there is typically a statement indicating whether or not the loan can be "assumed". I am really trying to find a route alternative to that under the impression that loans are not assumable on average.

@Bill B. Currently he has an escrow balance of $1,413.92. This must be overpayment that has collected as a balance. I'm sure he is just overpaying escrow... Wonder if it's possible to refine that to a more accurate amount.

I'll have to ask for additional breakdown for more detail.

@Bill B.

1) Home is worth $220k now, principal balance on loan is $179k. I would be willing to pay the gap as a down payment and assume the loan at 3.875%.

2) I agree! Isn't that outrageous? What am I missing? I have a (slightly smaller) home in the same county with good insurance rate and pay $370/mo to escrow. I am very confused how it could be so high. Surely my insurance isn't that much better.

2a) would I be able to change insurance if I assumed the loan? What other changes could I make to possibly refine the monthly payment.

Buddy is selling his home and open to creative/seller financing with me (buyer). I am not finding a way for this to be a win-win transactions. Am I missing something or is this just not a cashflow opportunity?

His current monthly Payment Breakdown:

- Principal: $314.66
- Interest (3.875% rate): $578.779
- Escrow: $700.79

-TOTAL monthly payment: $1,594.24

Estimated rental income: $1.2k - $1.6k per month.

Would love to somehow capitalize on the existing fixed rate, but at his current monthly payment and the estimated rent it doesn't seem like a great opportunity for cash flow. Am I missing something?

Home is in move-in condition and no renovations needed.