All Forum Posts by: Colton Fairchild

@April Childers Ok, so ~ $132k annually. That’s some serious cash flow. How many properties is it though?

Do you know if the lady bought them with all cash or financed them? If she recently financed them, it makes seller financing a little more complex because she will need to pay off her existing mortgage.

#1 Try and figure out WHY they want to sell a bunch of rental properties they purchased within the past year. There could be a red flag here that you need to know about.

A lot more info is needed to provide any accurate advice. Is that $11k for ALL of the properties combined? And is that monthly or annually?

$11k annually on a $773k portfolio doesn’t exactly seem accurate or desirable...

@Zachary Floyd I read the post incorrectly the first time. I corrected my response above.

Originally I thought it said you were paying $70k cash.

@Zachary Floyd You need a lender that will allow a sell carry back loan on top of the 70k loan. 
Would be better if you could partner with someone who has $70k and then you don’t need a lender. Then you can work out the seller financing with an attorney and title company. 

Is this going to be a rental or a flip?

WOW

I can see a deal going wrong and them only being able to return your initial investment but to only return 1/4 of that amount is mind boggling. Sorry to hear that happened to you.

You can withdraw the money but you do not want to take ownership of it (you will pay the penalty). You want to move it to a SDIRA or solo 401k (no penalty). Do not transfer the money to your business account.

Is this 401k from a previous employer or your current employer? This info is needed to determine if you are able to do this.

@Dmitriy Fomichenko can provide you with a much better response though!

Don't rely on other people's estimates for rehab, projected investment return, ARV, etc.

Do the calculations yourself to make sure they are being honest and accurate.

There are HMLs everywhere. They don’t have to be local. What exactly do you mean you can’t find any?

@Jesse Lewis I don’t believe this is a thing. If a buyer doesn’t have enough capital to even cover closing costs, then they probably should not be buying it. Seems like a high risk/low reward idea. You’d have to loan hundreds of these for it to be worthwhile for you IMO.

Chad Carson - Seller Financing