All Forum Posts by: David Vaughn

 Hi. Absolutely 

sending you a message

I'm actually in Shelby. I'm a general contractor able to do sfh and multifamily. I am also a real estate investor in the area.

 I'm a licensed builder in NC based in Shelby with quite a bit of experience. We are also real estate investors.

Definitely another to look at. I've done probably 60 or so sfh deals but have never even looked at multifamily so I'm out of my zone on the paper side. I need to educate myself a little more

There is a 3.5% spread above at the 5 yr point. The current interest is good but at the 5 yr point the payment could go from 25k to maybe 50k. Rent roll is 80k current. I'm just nervous there wouldn't be enough profit to keep the property up to a decent level. Maybe this is the dance with multifamily I'm just now learning it. I've always done sfh

I have looked at several deals on Loopnet many of which are assumable loans as a possibility. Many of these look attractive for the first 5 years of the note but then will have a very possible negative outcome depending on interest rates as of 5 years out. Looks like it could potentially double the payment making it really hard to profit from the property and keep it up to the level it needs to continue having a decent asset. I have done tons of sfh's mobile homes and even small apartment type houses but never a full complex. Is the back end of the financing always such a drastic risk or is this typically someone looking to cash out quick and leave someone else holding the bag? Also what to look for in a complex as far as financing and financability if that's a word.

I"M just now looking at creative financing but I have bought several properties over they years as an owner financed deal. Every time I have been a part of it I was buying a property that needed work. I am a licensed gc in my state here in Shelby NC and I typically had the properties back in rentable condition within a couple of months. In our case it was adventageous for the seller I"d like to think and we got several deals with other sellers after they saw us purchase, rehab and pay off our first owners. Most of the owners we purchased from had a recent horrible experience with a tenant destroying thier property and didn't have funds or expertice to repair and rerent. We were able to get the properties and put in some sweat equity and they were able to take a non producing asset and get an instant income back for a season. Had we defaulted they would have had a much better property than when we first took possesion however I do know that this is not always the case. I think us having the ability and history of repair and get rent ready along with 2 decades of landlord experience help when we do owner finance deals. With all the passive income videos circulating facebook and google I can see where selling owner financing could be dangerous for someone but if they do thier homework on the potential buyer and stay with folks that have a proven track record it can work out good for both sides. It can also avoid tons in capital gains if it's spread out far enough. JMO. Great article by the way

i plan on having money in the deal. How would I plan on repayment to a private lender. Are they less expensive than hard money? I couldn't ever seem to plan or structure a deal where hard money made since to me. It seemed to take way to much out of the deal on both ends front and back. JMO