All Forum Posts by: Craig M

I was talking more about houses that were built in the late 90's & early 2000s. Way more of those than 50's ranch homes around here.

Thanks guys.
The margin thing seems to make them harder to get at good discounts...or find those that people wouldn't mind actually living in as-is...

We are trying to sell because the place is too small for us, and we need every dime of equity we can get out of it to get into a new home. (hence the large down payment wrap buyer wanted). It seems a traditional sale gobbles up half of it in closing costs.

We refinanced early last year, and another refi would cost ~$5k, plus w/ the LTV, I don't think the numbers work out just right.

Too bad we were too naive to even consider those offers when they were handed to us. They are long gone now.

This "wally wrap" seems just like a regular wrap, what am I missing?

What should it cost for an attorney to write these up?

1. I thought the 'add 1-2%' interest rate sounded low. Thanks

2. We've actually previously had two potential buyers come forth, one w/ $20k & one w/ $30k - unsolicited offers that we let get away before we even considered owner financing (or knew what it entailed). What is the going down payment % for wraps? I figured it had to be a bit higher (~20%) to leverage some risk. We would like to get a fair bit of equity out of the deal.

3. I am fully aware of the DOSC, but not Wally Wraps. I'll have to look that up. I have checked with our lender and keeping this home's mortgage will not effect qualifying for our next house.

4. That's good advice - the escalation clause to adjust for the market.

5. PM sent

So... with 20k down, a 120k note @ 8.5% would put the buyers payment right ~$1000/month. I like the cash flow, but I don't want to price anyone out of the market for a cheap house.

I'm thinking of selling my personal residence on a wrap, but I wanted to see what you thought about these approximate numbers (rounded for simplicity):

$140k sales price
$30k down payment from buyer

$95k owed on my existing mortgage @ 4.875%
$550 P&I monthly payment ($650 w/ taxes and insurance)

Seller finance the $110k left w/ a wrap w/ a 3 year balloon.

How would you structure the deal in regards to interest rate to the buyer. I've heard add 1-2% to your current rate, but it seems I could do a little more than that and it still be an attractive deal for the buyer.

Also, I would like to find a loan processing company to deal w/ the payments & record keeping. What is a fair price to pay for those services?

(And I know a wrap probably isn't the first option many would choose, but I'm in Texas so its really my only option)

Thanks, guys. I think rehabbing may be the best match for me. I have great credit and some good help (labor & financial) available.

Wholesaling seems to take a certain personality type to be successful that I don't think I fit very well.

The suburbs around Austin are flooded with cookie cutter tract houses. What are your experiences, good or bad, rehabbing homes in areas like this? It seems at any given time you can find 2-3 houses with the exact same floorplan, lot size, features, etc. on the market.

It seems like the increased competition after your repairs can make these properties less of a deal (in general) than others with the potential for greater DOM/holding costs.

Do you tend to stay away from areas like these? Or is the trick to find a certain level of finish out quality that sets your properties apart from the ones next door, without overdoing it for the area?

In trying to sell my personal residence, we had 2-3 showings a week while the tax credit was in effect.

We've had 2 showings total since it expired.

Are there any sources or websites that can help determine the number of houses that are turning over in a certain area? Something to help judge where hot areas/neighborhoods might be? DOM would be helpful as well, or is this info limited to realtors only?

Maybe something similar to zillow's 'recently sold' feature, but one that works.