All Forum Posts by: Dahlia Hamamcy

Hi John, 

DM me. My mother is a broker in Austin. She's done several seller finance deals and I entertained selling my house in Kyle that way with her guidance, but ended up getting a conventional buyer. 

Thanks

Jo

@John O'Leary  I kind of have the same issue, but it's a condo in the building where I currently live. Not on the market yet. Seller is anchoring at ~$25 K less than the GIS. 

Zillow is showing $60k over seller's anchor price

Redfin is showing $120k over seller's anchor price (I know it wouldn't sell for that much)

Realtor.com is showing $80k over seller's anchor price

I think the bones are good, but it's stuck in the 70's - Seller is a chain smoker. It needs new floors, new carpet, new bathroom, new kitchen. 

I want to start my anchor at 50k less than what hers is. 

My issue is with financing. I can come up with 10k cash (willing to pull from my after-tax contributions to my Roth IRA) and I can take about another $50K from a backdoor IRA rollover from my prior employer's 401(k), but I'd rather not do that. In addition, I rehabbed my bathroom and kitchen myself in my primary condo. If I purchase the investment property in my retirement account, I can't do the work myself - I have to hire out and pay contractors through the retirement vehicle. Also, I won't profit right now from rental income - only my IRA will profit (yes I know it's me later in life), but I want more capital now so I can pay down my private student loan faster and repeat the process with other properties.

The place is 1 mile from the beach, 2 minutes to the bus stop, 1 mile to the train, and less than 1/2 mile to a new mixed use development that will open this spring (just the 1st phase) and it's a 20 - 30 yr mixed use project. 

As far as renovations go, I think I could get decent rent right now w/o the reno, then in about 2 yrs when the mixed use development has grown, I'll rehab the place and raise the rent. Not sure if I can refi OUT of my retirement vehicle, but if I can, that would definitely be an option. 

I want to buy and hold for rental income. Probably exit in 10 - 20 yrs. 

I've thought about seller financing, but I'm not sure the seller will understand that and I don't want to scare them (I'm sure I can explain it without using the words "seller finance"). However, I'm not sure the seller will be able to do that as they are going into either a nursing or assisted living (I'm not exactly sure) and those places may say they can't have any assets - so seller financing may be out of the question. 

Any other creative financing ideas? Above you mentioned Sub 2, but subject to what??????

I thank you and anyone else in advance for your ideas - help me get some creative juices flowing, PLEAZE..................

 @Tiffany Henning, I totally agree with you. I listen to Seth's podcasts and I've gone back to the beginning to binge them. I REALLY like that he asks deep questions and constantly probes his podcast subjects. Sometimes when listening to podcasts, I have questions that the interviewer doesn't ask - not Seth, he's VERY good at asking questions, asking his subjects to clarify and asking them to clarify again. After listening to his podcasts, I don't have questions because he's already asked them.

I got into a different program before I learned about Seth, but I do soak up his information. Once I get a few deals under my belt and money is more abundant, I'll also purchase Seth's training.

Investment Info:

Single-family residence hard money loan investment in Elma.

Purchase price: $350,000
Cash invested: $10,000
Sale price: $700,000

I invested a small $10k for a 10% annual return

What made you interested in investing in this type of deal?

I wanted to make money on my money via real estate

How did you find this deal and how did you negotiate it?

My friend told me about it. He had done 1 other investment with this flipper and brought me into the 2nd investment with her. Unfortunately, after the one that I did with her she decided to get out of the business. Now I'm looking at getting a group of friends together to invest in some properties through my brother who's done a few investments with a builder.

How did you finance this deal?

Money I had saved.

How did you add value to the deal?

Offered finances to help fund the flip before the sale.

What was the outcome?

Property sold for higher than expected. Unfortunately, my cut was still only 10% of what I lent.

Lessons learned? Challenges?

I didn't learn much from this deal, but it was a upsetting to find that I couldn't do it again with the same person. I know my 10k wasn't much, but it was a start and we all start somewhere.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No