All Forum Posts by: Darian Richardson

@Whitney Hutten

I plan to take care of the renovation cost out of pocket, so the only financing piece the seller will take on will be the property's purchase price. Currently, the property is owner-occupied and not rented. I am familiar with the area, and have another property around the corner, and anticipate that finding quality tenants will not be an issue. 

My concern would be how to go about the balloon note with the seller and to refinance the balloon note well before the maturity end date.  

@Nate Sanow appreciate that. We will be in contact

My Fellow BPERs and BRRRR Connoisseurs,

I need your advice and expertise.

Currently, I am looking into an off-market deal in Lawrenceville, Ga. The property is in need of repair ( roughly $22k in reno), with an ARV of $110K, I am looking to purchase at $70,000. One of the options I am looking to propose to the seller would be seller financing. To make this advantageous to the seller but also equitable on my end, I am thinking of a 2/1 balloon note. The goal would be to refinance after reno, well within the maturity date to payout the seller, and transition to a traditional loan with a lower interest rate.

This would be my first time doing the BRRRR method but also the seller finance option. When it comes to the balloon payment, I have heard more negative than positive about it, so I am a bit conscious about it.

Has anyone ever been in this situation, or has any experience with either seller financing or refinancing a balloon note?

Hey Alex, 

How did this end up going? I am looking into the option of seller financing with a 3/1 ballon mortgage, with a renovation within the first 4 months. However, I am looking to re-financing well before the maturity date. 

Looking forward to hearing from you,

Investment Info:

Single-family residence buy & hold investment in Lawrenceville.

Purchase price: $234,000
Cash invested: $15,000

House-Hack

Single-family home with basement apartment unit 1 bedroom, 1 bathroom, kitchen.

House hacking all bedrooms on the upper level.

Monthly mortgage covered completely

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

Single-family with a basement apartment that rents out, with potential to house hack room by room.

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

Real Estate agent found it and purchased at the appraisal price.

How did you finance this deal?

FHA Loan

What was the outcome?

Currently being house hacked at full capacity, basement apartment, and 2 bedrooms. The monthly mortgage completely covered.

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

Real Estate -Amesha Mason

Sounds good Tim, looking forward to it.

Hello BP,

Two thing aspects that I have learned on the route to F.I.R.E is paying off debt and also building a portfolio filled with passive income investments, investing in real estate is the vehicle we predominately choose hear at Biggerpockets.

Between these choices I am trying to determine which would be the priority. Paying off the loans such as auto, credit cards, student loans, etc.  OR putting those extra funds towards saving up for your next deal?

Paying off all my credits cards and completely paying off my auto loan has definitely gave me mental momentum to stay on track and pay off my student loan which is my last loan left (excluding my property). At that same token, if I direct those funds in my opportunity fund that will be a greater down payment for my next deal on a quadplex? 

I'm curious to know, how others have prioritized on their road to freedom?

@Casey Powers Good Read!!Thanks for sending over. Unfortunately, since GA does not allow domestication of LLCs. More odds than likely I will have to dissolve the LLC in NV, and open a new one in the state of GA.

@Basit Siddiqi

Thanks for the input. It is a multi-member LLC. I agree, option 2 is not looking like the best possibility. I am leaning towards the option of transferring the LLC, just need to figure out how exactly to go about it.

The goal of the LLC would be to separate my business expenses form personal, build business credit, hold, and acquire properties.

@Edward B. Thanks for the insight.

If possible I would like to transfer the NV LLC to Ga, I opened a line of credit for the LLC and would like to effectively keep the same Tax ID number as well as Dun & Brad street number.

I agree having the LLC in NV and Georgia would definitely be Overkill in this situation.