All Forum Posts by: Brannon Hamby

Hello!

I have a property in a good location keen to entertain owner financing, however, they have a $304,000 mortgage balance on the home worth $625K.  If you are proficient with Subject To deals, would you be willing to lend your insight?

Thank you.

Brannon

Thank you!

Can you explain how they would “wrap “ the mortgage?

Does your seller financing proposition have to include a down payment that pays off their mortgage balance?

@Doug Smith thanks.

You mentioned other, more traditional, financing as an option that might be even better..  

How would you structure the financing here… considering everything is difficult to cash flow and really analyzing to get to break even+.?

@Doug Smith

I wanted to try to get clarity on one point you made.. about doing a refi after the property is up to snuff.  
all given that the property is going to be purchased with HELOC, could you explain what you meant by cash out refi..? Or did you mean doing CO-Refi later on down the road?

@Doug Smith

The property is in rough shape and I assumed conventional lending would not underwrite. I am planning to use a HELOC (prime minus 1/4%) to purchase ($275K) and rehab ($73K) before securing permanent.
2-3 month rehab and it will be held and rented back by the small business I own.

I am in final negotiations on acquiring a property that was inherited.  The property is in a good location, thus attaching $value to the purchase price, but there are years of deferred maintenance, and a full rehab is needed.   

I am looking to negotiate as much time as I can, however, the seller is reluctant to agree to owner financing.  Is there a benefit to the seller by spreading out the gains/ proceeds of the property ($275K) over two (2)  different tax years?

We are gathering that $275K is her number and we are currently asking for that purchase to be made in 4 payments, every 90 days, until paid in full July 2024.

My wife and I are newer to the leverage game and would love your feedback on this mls listing, as we’re trying to satisfy 1031 in 3 weeks. -Duplex listed for $345K (two 3/1’s with yard .38 acre) -Now under contract for $325K (seller attempting to make $25K in deferred maintenance repairs) - My wife is broker - Currently rented for $2650 (7.1% CRate) - C+ to B- property in B to B+ location - We will manage - not much of a value add in near future, likey 6-8 years before any meaningful improvements - approx 170 MF units built 3 years ago and another 170 units starting now in very close prox. (1 Br is $1250). We are very willing to walk/pay the tax ($210K of proceeds) as it looks like they don’t want to do 100% of the repair requests. Hoping to spread proceeds across 4 units, but market timing, my area, and where we are in the process of generating off market pipeline has the pickings slim. I have gained a tremendous baseline understanding in the 3 weeks I’ve been on BP- Thank you! Really appreciate your feedback.

So, I reached out to an agent about 10 days ago on a rental (homeowner w backed taxes) in a highly gendrifying neighborhood- 1950, 4 BR/1.5 BA, 1100 sqft asking $1500/mo. She didn’t call back. Long story short I call back today and find out the homeowner has been leaning toward selling since the property hasn’t rented (needs updating) but they received a rental app yesterday :) The original homes are comping at $250K-$300K with updated homes nextdoor comping at $575-$675. The agent said she would present the offer to her client, but she thinks he’s leaning heavily toward renting it another year and will allow him to pay some debt. Do you know of a creative approach to tie up the property now and make it a win/win..?

@Dave Foster thank you for taking the time and the articulate explanation.