All Forum Posts by: Geoffrey Jones

@Jason Dillard. How exactly do I setup an escrow for the cash payments. Do I use the prepaid rent? Will the closing attorney be able to set this up or is this something done by a RMLO at closing?

I am in NYC also and I buy out of state. Worked for me.

@Jason Dillard : I'm dealing with a few note buyers and they seem to be interested in the down-payment. Since I am buying with an option contract and creating the note at closing and getting all rent upfront. I'm not sure what to say in regards to my down payment since I am the one guaranteeing the note. Should I tell them that my downpayment is $0 or will that make the note look bad?

Also the buyers option it not 850000 its now 872000 and includes a second property with a newly built garage valued at around 60000-80000. A nice addition to the ARV. Without changing the price.

@Jason Dillard : Yea I believe the market will be 900000 to about 1.2 mil over the next 3 years. There are quite a few properties in the area already selling in that rate and close to the same size and the market is swinging up really quickly.

This is the property here.

https://www.zillow.com/homedetails/17-Arrowwood-Ci...

Also posted it for sale for a wholesale fee if another buyer bites if I don't purchase it.

https://www.biggerpockets.com/forums/517/topics/60...

The seller will also pay a deposit of 17200 at closing for the option to rebuy in 3 years if they don't they forfeit the deposit. This will be paid on top of rent.

Lastly,  I will present this deal to a few note buyers and see if it works out. If you know anyone let me know.

Giving my self a few profit options

Here are some pics of the property. Houses in the area mostly go from $850000 to $1.4 mil

@Jason Dillard Thanks Jason. I have gotten all signed contracts back and it is now under contract. Option Agreement, Lease Agreement & Purchase & Sales (wholesaler) agreement. Now looking for a buyer for the note that ill have drafted up at closing. Hopefully all works out. So it seems I have three ways to close this deal. Wholesale the contract, find a note buyer where I am the guarantor on the loan or buy it myself. Contract is contingent on financing, personal inspection and partner approvals so i have an exit in place.

Jason Dillard

Would it be fine to use a Lease Option Agreement instead of a separate Option and lease?

Also if selling the note wouldn't the note buyer want to know the credit information of the seller since they are repurchasing the property back after 3 years? 

What an awesome idea. What forms would I need to create the note and how can I legally file this? Also how long would it take for me to sell the note at the discounted price?  I want the owner to get the cash out but don't want to make it too complex for them as they are aged and are looking for convenience. Also know any note buyers out there that may be interested?