All Forum Posts by: Carter Henderson

@Ashish Acharya from the owners point of view, why would he want to seller finance with an existing mortgage? I would need to cover his mortgage and probably the same cash flow with the monthly rent which is break even for revenue. Seems like a hassle for him just to get the same monthly cash flow. The only enticing thing is he can demand a higher interest rate.

Hi BP Community,

I have a friend with an amazing multi-family property (I used to live in one apartment and can attest to the quality) in a great location that is continuing to boom as tech companies move in and has great cash flow.

He is looking to step away from the property, at least from an operational standpoint, and is willing to sell all or a part of it.

I can purchase the property the normal real estate investor way with 20-25% down and traditional bank loan. However, I would have to bring in multiple partners to do so.

I am looking for advice or experience from someone who has financial engineered a deal in the past where I could possibly do this deal on my own. I’ve thought of seller financing but the cash flow is so good, it really doesn’t make sense to my friend plus there is still a very small monthly mortgage on the property.

We even discussed me just buying a piece of the LLC that holds the property and using the cash flow I own to continue to pay more into equity. Does this entail different financing options from a bank?

My friend does not need cash right away and is more than willing to accommodate anything I can come up with to make it work. Just need to find a way because the property is ideal.

Any ideas for a financial structure that might be of help to make this happen?

Thanks!

@Russell Brazil okay, so you’re saying I don’t have a choice. It always goes towards closing costs?

@Russell Brazil right, I get that dynamic. But do you have an idea of what’s more beneficial, going towards closing costs or deducting from purchase price for the loan?

I am about to close on my first real estate property. Did all the inspections and had my “asks” back to the sellers for them to fix things. They countered with some fixes, a home warranty and an amount of credit off the purchase price.

Should I ask for this credit to be applied to the closing costs/down payment instead? Is there a time value of money scenario here? What would be the most advantageous thing to do?

Thanks for any information here!

@Jaysen Medhurst they are all in the surrounding suburbs of Pittsburgh.

@Jaysen Medhurst there is a 3-unit that is selling for something in the low $500k range that has existing tenants in two that pay $1.4k and $1.7k. Also, my pre approved loan only does PMI until 20% has been paid and then it drops off.

I just wanted to see if I would be making a huge financial mistake if I went forward with any of these.

You probably can’t even call this project a house hack but looking for advice anyways.

I have found duplexes in nice areas of the city, #2 school district, that have nice modern updates and nice big backyards. One is going in the low $400k range and the other for $445k. Between my wife and I, we bring in a little under $100k/yr (should be over $100k in 2020), we have $25k-$30k for a down payment and don’t spend very much. We are currently renting in the city for around $1.5k/month.

The duplex going for low $400k has a current tenant paying $1.6k/month and the $445k duplex has a tenant paying $1.7k.

I do not care to make money initially off buying the duplex and okay paying anything under $1.5k for all in monthly expenses for this place. I think building the equity would suffice for now and then moving out to rent the other half in a couple years.

Does anyone have advise for this deal? Do the numbers not make sense? Is it stretching too far? I would appreciate any information!

@Greg Dickerson thanks for the follow up message. I will send over a private message now.

Does anyone have construction experience in the outer banks? I am about to get a property under contract that is very south in outer banks and a lot back from beach front.

I wanted to see if any one was familiar with building on land in these areas and had some tips that would save my team some headaches.