All Forum Posts by: Chris Weaver

Daniel Lehman Wow! I would say trade the car in for a lease. They have extremely cheap lease deals on civics and corollas.

I would say as long as your debt/income ratio would still allow for a mortgage, keep the cash and the loan and use it to put down on a house. Do you have a few credit cards? Having three helped my credit significantly. I'm assuming you meant to say 2.4% interest)

Originally posted by @Jeff Rappaport:

@Chris Weaver, to truly answer your question we need more information from you.  What are you trying to accomlish with owner financing?  Are you using it to buy and hold?  Wholesale?  How much money are you or your buyers willing to put down?  My experience is that any seller that is offering owner financing is probably asking for a big down payment.  When you approach an off market seller and offer owner financing I try to keep the down payment low and get the seller what he/she needs.  The best part of owner financing is that the price is almost irrelevant.  I can offer way over market value but the rest of the terms need to be what I want.  

In my opinion, figure out what you are trying to accomplish and find the property.   Make the seller multiple options and let the seller tell you which one will work best for them.  Once they give you some direction negotiate based on what you want and what would best suit their needs.  Once you find that common ground you will have yourself an owner finance deal!

 I would do this for a buy and hold. I'd like to get seller financing because it's more negotiable than a bank, they know the property so if it's a rental they know it will rent out. Also, it would keep more options open for the future.

How would you suggest I find a seller willing to finance?

I don't see why he would split the profit with you?

Sounds like a decent deal. I would allow more for repairs/capex though. 

These are the obstacles with this market:

1. The job market is skewed so there are mostly low paying jobs (restaurants, stores etc) and high earning individuals (business owners) 

2. Taxes are high

3. Home prices are high 

So in short, rents are low and home prices are high. I've looked at a few apartments for sale here and they were in disrepair and dirty for around $100k/unit. 

On the other hand, if you ever need a GC in this area I have one that I can recommend.

Where is your vacation rental? There are so many vacation rentals here in North Conway that there are hardly any long term rentals. Pretty much anything worth renting out is rented to tourists.

I can tell just by the taxes that the deal isn't very good. I am dealing with the same obstacle in my area (over 2% tax). Also I think capex is usually 10% and maintenance and repairs is about 10%. Management in my area is closer to 12% (including turnovers).

Well not everyone wants to share a roof with their tenants. I know I wouldn't want to...i'd prefer to have my rental property elsewhere.