All Forum Posts by: David Montore

Great point Marc. It did sound like I was pushing for something creative just for the sake of it. Maybe I was, I’m still learning. My conceptual understanding of seller financing is that you’re essentially the bank collecting mortgage payments from the owner (who maintains - or doesn’t maintain - the property) instead of collecting rent payments from a tenant who lives in your house which you maintain. In that regard you have no responsibilities for maintenance or utilities because it’s not yours (unless you have to foreclose). I know her having an existing mortgage throws an extra layer in there regarding the structure of the note. But I was exploring the possibility of her getting some down payment cash and 3-5 years of potential cash flow instead of taking whatever that non competitive market gives her after the agents take their cut. I get your point and I appreciate you weighing in, but for the sake of my own continuing real estate education am I at least barking up the right tree?

Thanks fellas, I'll pass your advice along! 

Thanks @Christopher Winkler that's the picture that was slowly forming in my head but that last part about signing a quit claim deed in advance was the missing piece. I feel comfortable at least broaching it with her now that I can articulate at least some basic risk mitigation steps. 

It seems like you've done this a time or two. Have you and @Skylar Simpson ever had trouble finding a buyer that would agree to those terms? I understand this is the very nature of owner financing and that it's for the buyer who can't qualify for traditional financing for whatever reason, but don't those buyers usually show up with little cash available? I exchanged messages with another (very generous and informative) investor recently about seller financing and he described it like you, with the healthy down payment and slightly higher interest rate, but I couldn't wrap my head around a buyer with $25k in their bank account who can afford a higher interest rate and slightly higher monthly payments that couldn't qualify for a traditional loan. Or maybe I'm reading into it too much. I do that...

My sister-in-law and her husband are about to put their house on the market near Ft. Riley, KS instead of renting it out because they’re tired of the hassle of scummy tenants. I think she’s in the perfect position to sell via owner financing but I’m not savvy enough to give her the step-by-step. For a first timer would it be as simple as approaching a real estate attorney for help crafting the note and going from there? In paying an attorney for their time, is walking you through the process part of what you’re paying them for? I can’t think everyone is self-taught and learned by trial and error. I know there’s a learning curve with everything but I’d hate for them to miss out on a great opportunity because I didn’t convince them to at least try calling someone. Thanks for any advice!

Not to shill for anyone (I’ve never been and I still don’t know if I can make it) but there is a Tacoma REIA meeting on the 11th in Redmond and they plan to discuss out-of-state investing opportunities. That’s the only way I’m going to get in the long term game. If you’re like me in terms of in-person vs. online interaction it might be worth a few hours of your time.

Jameson Sullivan couldn’t agree more about our local market. I haven’t been to any local REIA meetings yet but there’s one on the 11th (I think it’s the Tacoma REIA) that’s specifically for out-of-state investing. I’m going to make that my first meeting for all the reasons you’ve mentioned. I think between that and the BP community we’ll have zero issues finding a market elsewhere. Happy hunting.

Joshua Moore, I’ll PM you today. I was considering a very similar path. I’ll give you some considerations as a long time soldier and WA state resident. NOT YET an investor though, in the spirit of full disclosure. Josh Wilson I’m a soon-to-be retiring 1st Group guy also just getting into it. If you’re up for a coffee one day, message me! Would love to chat.

Ok I’m just getting to the part of Dave Van Horn’s book where he explains institutional notes in depth. If my understanding is correct the banks will further break them down into smaller pools and continue to sell them off to other smaller banks and brokerages where they would be available (as pools or one-offs) to individual or small team investors. Am I close?

Hi all, have mercy on the new guy here! I promise I'm not looking to be spoonfed information. I love doing my own research and I'm loving my real estate education journey so far. I'm currently in the middle of one of Dave Van Horn's books on note investing but I've not yet gotten all the way through so the process in its entirety isn't very clear to me just yet. I'm getting there though, with help from people like you, so thank you. My question about this topic is regarding the last part of the article where they said that the loans were batched into two pools with each going to a different bank, with bids due by June something-or-other. Does this mean that those notes are being sold by the banks as a pool to the highest (I'd imagine billionaire) bidder who then plays middle-man and sells them off as he/she sees fit? Or will the banks sell them off in batches or one-offs? Is the "little guy" even able to play directly with notes anymore or is it more often done through investment companies? I appreciate any clarification, thanks.

And for the record, @Martin Saenz, your book is next!

What am I doing wrong with tagging people, BTW? Neither my phone nor my computer let me do it.

Mike M. thanks for that link, that explained it all. I did have it right in my head, conceptually speaking, in that there was a motivated seller and a strapped buyer, only difference being the buyer isn’t really *cash* strapped per se, just hard up for bank financing. That system has few moving parts but it makes sense. The theme I’m seeing in my “investor discovery phase” is that the hardest part isn’t figuring out which way to skin the cat, it’s finding the cat. Which brings me to what Grant (it doesn’t let me tag more than one person per post for some reason) said about multis. While I’m still learning and slowly building my strategy, I keep coming back to them as the only thing that makes sense for me. Question for you as a fellow PNWer, are you sole owner of your 40+ properties or did you do syndication or JV on any of them? I can’t imagine how much net worth that is considering this market!Have you found many people in our area who are interested in partnering on multis? I’m going to start attending meet ups around here shortly to start answering a lot of my questions about the market up here but I figured I’d ask since we’re already talking. I don’t see my first deal being a solo effort on a multi but I am very interested in ponying up some cash as a partner in exchange for an education (like a lot of people here have done, I’m sure). Won’t be until next year but I’ve learned you can never start networking early. And Mike E (again with the tagging problems) I’m glad that jpg helped! That was a random post from another FB RE group that supposedly came from BP somewhere, though he didn’t remember where exactly on the site he got it from. Thanks everyone for their input. I sincerely appreciate it.