All Forum Posts by: David Sanford

I have this offer to buy a house valued at $150k, with a purchase price of $115k. seller said he would finance for 9-12 months then a balloon payment for full price would be due. how can I execute this? can I get it in my name then let it "season" for 6 months and do a cashout refi and pay him off? any other strategy I could pitch? any reccomendations are welcomed!

what kind of cap rates are you all receiving in these areas? thanks for the location ideas!

I'm located in central VA and invest primarily in 23831 (Chesterfield County). However options are running very low lately. What other zip codes in VA or maybe NC is a good market to check out for rentals?

@Mike M. Thank you much for the reply! So the guy offering the house to me owns the house outright so there is no mortgage on it and he pays the Tax on it since it is titled in his own name. The "rent-to-own" tenants occupying the house have a written contract to buy the house at $150k in May 2019.

I think I have a great opportunity being offered to me, I just don't know how to execute it. a fellow investor ive done deals with in the past has a rent to own contract on a property at $155k. He is offering the house to me at $120k as long as I'll still honor the rent to own tenant at $155k. I'm absolutely fine with honoring that. easy $35k profit... But heres where it gets tricky, the investor said he is willing to carry the 120k for up to 12 months. Now what do I do?? Is there some way to get the house titled in my name and then take a loan against the equity of $150k to pay him off? This would save me the 20% down so essentially I'll get the house with next to no money out of pocket. I was also thinking of seeing if he will sell it to me at $80k on paper so I can save a few grand on the 20% down, and I'll give him the other $40k in 6 months from now when I do a cash out refi. this is pretty difficult to explain, hopefully someone picks up what I'm putting down!

I'm out of Richmond VA but I use Shawna Yeaton with Atkinson Insurance. Great prices and excellent staff.

A friend of mine wants to start partnering on rentals. 50/50 split. Whats the advantages and disadvantages of this? If I can buy 5 rentals on my own at $400 profit each, or 10 together at $200 profit each after split, I don't see the point in partnering if the income will be the same either way. Am I missing something? side note: I currently have been investing for about 2.5 years and have 6 rentals on my own.

I would say to find a new lender. I just purchased my 6th house, all of which were 20% down, except my primary house. Also for the reserves I had to have 6% of the total payoffs of my mortgages combined. I used C&F bank, not sure if they're out your way! also, if you are married you can have 10 mortgages in your name, and 10 in your spouse's name. or 10 total if all mortgages are in both your names. So technically you could have 20 mortgages total. after that you would have to resort to paying cash, hard money, owner financing, credit cards, etc... Also, I heard that after 7 houses you have to start putting down 25%, but I'm not there yet so I can't verify this. it may just be specific to the lenders overlays.

Thanks. I guess my problem is that the current owner has tenants in place that are month to month at both houses and my lender is requiring a 12 month lease in place effective on the close date. But, I don't plan to keep the current tenants as the rent they pay is about $300 too low and I don't want to lock them in another 12 months at their current rate. I think I'm stuck!

I am purchasing 2 more houses next month. For approval, my lender said I need to have tenants in place prior to closing. I have them in place however how does the lender verify that they are actually in place and it isn't a made up lease?