All Forum Posts by: Dean Weltman

Reading the responses I realized that it's important whether you're buying or selling. Generally, a knowledgeable seller or someone with an underlying mortgage is going to be getting closer to 10%, while you make be able to convince un unsophisticated seller to buy off on 4% or even some type of flat rate. Obviously, you want a deal that works for you - no matter which way the transaction goes. Banks have rules for lending, but my primary rule is profitability, and thus I try and figure what I want or need to earn, and then work the math backwards. Then you need to sell it...

I'm no expert, but I'm in the process of doing an owner-finance of a rental property, so I've been doing some research... Backstory: This is actually a transaction I started a year and a half ago that fell through, but the family stayed as very good renters. Fast forward, and now they're ready and in the meantime they were taking care of the place like it was theirs. The property is a SFR and the price was $150k. Now, the price is $160k and my underlying loan balance is about $96k. I'm doing a wraparound mortgage and the interest rate is more a function of my desired monthly profit above the cost of my monthly mortgage payment (I have insurance and taxes escrowed and plan on keeping them that way). There is a 'normal' range that I've seen for owner-finance, and 10%+/- doesn't seem too unreasonable, but I solved for the interest rate based on desired profit and not the other way around. I still need to clarify a few things regarding depreciation recapture and other tax issues, but right now I just want to cash out the equity to fund other projects. I don't know if that helped a bit, but best of luck.

I would say it depends on where it's at - is your project going to improve or detract from its neighbors. I have little faith in small towns like The Colony being quick to change zoning, but the large projects going on there right now (Nebraska Furniture Mart, widening of Main St, Toyota hq anticipation) might be encouraging a different outlook regarding city planning. 

It would be worth asking about, and maybe another viable option would be to try and develop that acre into smaller SFR lots...

I live in The Colony and would be very interested in knowing more more about your project. Feel free to PM me next time you're in the area and I'll buy you a cup of coffee. 

Hi PJ, and welcome to BP. Are you living in the DFW area or in Melbourne?

Paul Winka I'm aware of Simplisafe sponsoring the podcasts awhile back - that's what I was referring to... Thanks for trying, but I think the discount no longer applies.

@Tyson Cox The sponsor was Simplisafe, but I'm not able to find a BP discount for them right now... 

Simplisafe was giving a discount for Bigger Pockets members; does anyone know if that is still in effect? I tried to price it online and couldn't find a difference in price.

@manish bakery

What he said. ^^^

Most of The Colony is a bit older (70's to mid 80's Fox & Jacobs), with some nice mid 90's to early 00's on the west side by Lake Lewisville, and some even newer homes on the east side of town. It's a small town and there isn't much area left to develop for residential projects. When you start jacking up the rents, I think most people familiar with the area would rather move up the road to Frisco or just south to north Carrollton...

I've had a rental here for about 10 years and I've lived here for about 5 years.

@Daniel Lehman

And thanks to you, sir, for clearing up the VA loan confusion across multiple posts on here.

There's a lot of incorrect information on here. I recommend you:

1. first go to the source - www.va.gov

2. before posting in this or any other forum, do a good search

The first post I read about this was about 9 months old, and it had a lot of good information. It started off with some bad info, but they quickly corrected themselves and someone even posted a good bit of info straight from the VA site.

It's easier to ask questions than to research answers, but a lot of the people answering didn't do any research, either. 

Good luck.