All Forum Posts by: Charles Carillo

@Ryan Denman

It sounds like a Reg A offering might work for you.

https://www.investopedia.com/terms/r/regulationa.asp

I would speak to a Securities Attorney before making any decisions.

@Justin Skiles

Just a question, but if you have the funds to buy and renovate, why do you need a partner? It would be much easier and safer for you to do it yourself. If he does not do the work he is supposed to do or do it in the timeframe that was initially anticipated, what happens? It sounds like the house would be in his name; I'm not sure what type of recourse you would have. 

@Noyessie Hubert

Down payment assistance cannot be done in a couple of days. It is an entire program with participating lenders, and the process should be started before you start putting out offers on properties.

Read more here:https://www.nj.gov/dca/hmfa/roadhome/index.html

If you need funds to close, I would probably suggest starting the process for your 401k loan now.

@Mano Lag

It would be easier to just find a lender to loan against a property you are purchasing. I doubt a lender is going to purchase and seller finance it back to you.

 When a tenant hands me or anyone on our team a check, we deposit it within hours. Did you tell them that they have not paid the month in full? What did they say?

@Linda Roberts

Did they sign a lease agreement for the new lease rate? When we raise rates in our apartments, the tenants sign a new lease.

@Derek Morrison

I would speak to your real estate attorney before making a decision on your leasing practices. When I self-managed properties, I would pre-vet people (ask them questions and review the requirements), so only (very) qualified people applied. Yes, I don't want to waste time, but I also don't want tenants wasting their money.

@Jaekwan Lee

When I have house hacked, the properties have never cashflowed (with me living there). I know people say that, and it is ideal, but it is difficult, especially in growing markets. My goal when I house hacked was to lower my monthly payments. I would want the property to cashflow if it were 100% rented, which sounds like it is still a stretch. If you are going to live there for several years, you might see some rent growth that can assist your bottom line, but I might keep looking.

@Dennis Meyer

Do you have any funds available outside of the HELOC to use? With renovations, it is typical to go over budget (especially on your first one), and you want to ensure you have cash to complete the project if unforeseen issues arise. I would also want to verify that the renovation budget is accurate. I might look into financing options for the property and utilize the HELOC for the down payment.

@Michael Hyun

Yes, I would pay slightly more for a seller financing deal if the interest rates were similar. Mainly because I can craft the mortgage a little more (no pre-payment penalties, lower down payment, etc.) and eliminate the fees charged by lenders and brokers.

One of the benefits of purchasing a listed property is that the broker will normally set the seller's expectations a bit more than you just contacting them off the street.

It comes down to what the seller really wants: a certain price, interest, down payment, or term. Once you figure that out, you can negotiate the other terms with them.