All Forum Posts by: Darnell Robinson

I've been looking for my first STR all over the nation, talked to a lot of agents and owners about their STR for sale and ended up deciding to focus on Orlando. Seems to be a good place to start (but of course I could be wrong if the deal isn't right). My Grandmother and Aunt live in Davenport so I've been searching in that area and others closer to Disney World.

I'm just wondering if there are any STR owners in here willing to do seller financing? I figure this is where I learned of this strategy so why not ask here also. I would ultimately refinance and cash out the seller but it's been difficult to get a loan without a full 20% down.

I’m open to any suggestions, advice or opinions. Thanks I’m advance!

0 Votes

Orlando, Florida

Ola,

Greatly appreciate the advice. I’m still grinding it out to get my feet wet in my first deal here in the Bay. I’ll reach out if I hit a road block. Thanks!

1 Vote

Oakland, California

I hear you on most of your advice but have to disagree on asking what the terms are. I asked the same question to the first agent and it sparked a very informative conversation which helped me understand what was needed to get the deal done. If I know what I need, then I can start pulling those numbers together with others.

0 Votes

Oakland, California

New investor here. As I try to explore Seller Financing, I’ve come across 2 situations.

2129 Clinton Ave, Alameda is a 5 unit building asking $2,350,000. Seller Financing available at 3.5% over 9 years left on current term & they want 41% down.

3868 Maybelle Ave, Oakland is a 4plex asking $1,460,000 at 5.25% over 5 years(agent says this is negotiable) and they also want 40% down to clear the first.

I’m new on this seller finance area and called to find out what the terms were on each. The Alameda agent was very nice and professional as I explained I was new to this and had questions. He immediately sent me all the info I asked and said if the buyer that they current had in escrow didn’t get approved, he would call me asap.

The Oakland agent was rather condescending and told me that if I didn’t “have $650k to put down then I shouldn’t bank on getting any deals of this size done.” I explained to her as nicely as possible that I have had many conversations with private lenders and hard money lenders and boom 💥 she cut me off and scoffed at me that “neither of those wants to take a second position so I don’t think you know what you’re talking about!” I didn’t get upset I simply replied that I wasn’t so sure of that. To this, she got a little condescending so I I told her to have a nice evening and that I’d probably meet her at some point in the future and looked forward to learning more. (I’m also an agent in Oakland).

When a seller is asking for 40% down, is this because they want to take care of the first lien?

Am I wrong for calling and trying to learn on the fly?

0 Votes

Oakland, California

REI REALTOR,

I appreciate the feedback. My partner has done countless rehabs and is currently doing one with fire damage right now in KC. We're aware of what Plymouth looks like on the construction costs. There seems to be a misperception about my post, I only posted those two deals to show what we've been seeing (low purchase prices that we KNOW we can fix as WE are doing the work). I didn't post it to get financing just for Plymouth or the duplex. I posted because this would be my first time asking for DSCR, Fix/flip, long term/short term financing & I'm curious how that plays around what we've been encountering in Detroit. I live in Oakland and am now searching the Bay Area for similar financing out here. Detroit was just a very different market. So yes, to answer your question, I'm well prepared for whatever I get myself involved in. And as you seem to have done your diligence on that one property, so have we. I understand your position as a possible lender and what you've stated also. Again,Thanks for the feedback!

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Detroit, Michigan