All Forum Posts by: Daniel Ahlbrand

HELLO!! I want to preface this post by noting that IM A COMPLETE NEWBIE! So every tip or piece of advice is greatly appreciated! 

I purchased a rural 5 acre property in Freedom, IN (Land Only) and sold the property via land contract. I would like to sell the contract so I can use the capital to purchase a 4 unit apartment building in Indianapolis. I've never sold a property on contract prior to this, so I've never sold a land contract either. The details are as follows:

Property was sold in April 2017 for $40k with $5k down at 12% interest for 10 years. Monthly payment to me is $502.15. Contract payoff is approximately $34k. I also purchased the property via seller finance and still owe around $9k, which would obviously be paid off if I sell the contract so the property would be transferred to the name of the contract buyer.

I would like to sell the contract for $25k.

What are some of your thoughts? Would this be a possibility? What are some steps that I could take to make this happen? Would anyone here be interested?

AH... That makes sense. Thanks!

It is

As a newbie, I'm not sure how valuable my input would be here, but if I were giving someone money to invest, I'd want to know 2 main things. 

-If I'm taking money out of my 401k, where it's making me a 9% return consistently, will it make a better return if I give it to you? What's your ROI and how much of it are you giving to me?

-When and how will I get my initial investment back? Will you be refinancing after a year and paying me back? Will you be selling the property in 15 years and hoping for enough appreciation to pay me back? If you're looking for someone to loan you the cash long term, You'll probably be hard pressed to find a hands-off investor. Long-term lenders (other than banks) will most likely want partnership equity equal to their investment, just because if you lose interest in real estate or god forbid something happens to you in 5 years that prevents you from being able to keep up with the property, They will want to be able to step in and protect their investment.

Just a couple of things I would want to know... but, like i said... I'm just a newbie. GOOD LUCK!

OK... so the screenshot isnt clear at all....

Is there a place where we can upload PDF versions of the analysis calculator reports?

I just completed my first deal!! Its a 5 Acre piece of property about an hour south of Indianapolis. Purchased with seller financing for $12,000 at 12% interest for 5 years and SOLD on seller financing for $40,000 at 12% interest over 10 years. 

When I purchased the property, it had no driveway to access the property, and there was a forest of trees between the road and open part of the property, so I had to spend $1000 on gravel and a weekend cutting down trees. I also spent $5000 on a "tiny house" shell and storage shed from one of those amish built barn companies. Being an hour away from civilization (15 minutes of gravel road to get to the property) The driveway and buildings made the property a LOT more desirable, especially with the growth of the tiny house trend. 

My payment on the property is $256/month for 5 years with $500 down, and my income from the property is $503/month for 10 years + $5000 down payment.

I would like to get more into rental property than selling on contract, but I sort of fumbled my way into this deal, and with it being rural property with no house, there were a lot fewer hurdles and red tape with the county, which made this a great opportunity to get my first deal out of the way and make a little money in the process (All of the "first deal" horror stories on the BP podcasts where people lose thousands of dollars made me think EXTRA hard about what I wanted my first deal to be). 

I hope to keep this momentum going and start acquiring more cash flowing properties for buy and hold! 

One down, Infinite to go!!

This is a 2 part question: 

1) So I have this property for sale for cash, but I'm considering selling as Rent to Own. This would be my first sale, so I don't have the necessary contracts and funding is EXTREMELY limited, but with resources like BP and RocketLawyer, surely I can get the necessary contracts for free. I've consulted with a real estate attorney and I'm finding the average cost for them to file the paperwork with the "necessary municipal offices" is about $2000... Not to discount the attorneys role or abilities, but I'm assuming that filing paperwork with the recorders office is something I can do myself for much less? Or is filing with the recorder even necessary on a rent to own? While I absolutely see the value in having a real estate attorney to consult with, Is it necessary to pay $2k for them to file paperwork? Is there more to a rent-to-own than getting the notarized signatures and filing it with the recorder? Am I missing something? 

2) Whats the best way to sell a property as Rent-to-Own? The terms that I have in mind are $3k down, $500/month for 36 months, and $10,000 due at the end of the 36 month rental period... I've heard several different ways, but I like the idea of having two separate agreements... one being a 36 month rental agreement, and the second being a $10,000 purchase agreement. It seems like this would allow for a 30 day eviction in the event of default, rather than having to wait a year to foreclose. Is there a better contract or agreement available that accomplishes this in a single agreement? or is there a better way to structure the sale? I'm a complete newbie here, so any tips, advice, or assistance is much appreciated!

Thanks in advance!

Hey @Jason Wilde. I live in Indy. If you need somebody on the ground here, dont hesitate to reach out. Ill help out however I can. 

Joshua T. Robertson

Cohen Garelick & Glazier

8888 Keystone Crossing Boulevard / Suite 800 / Indianapolis, IN 46240

Call this guy. Ill send you his info. They are all encompassing in real estate. They are real estate attorneys, title company, creative finance advisers... They solely work in real estate and have been for 20 years... experienced and knowledgeable.