All Forum Posts by: Devin Borders

I just spoke with a friend who is also an investor and lender. He said the best way to go is a subject to. I'm currently looking into that option as I'll be able to assume their mortgage which has a much lower rate. And we won't have any closing costs associated with a new loan.

Hey guys, thanks for the replies. The current owners are married, in their 50s, college educated and empty nesters. They really like the area, and are willing to pay market rent. This guy is also the president of the HOA in their community. So for the sake of conversation, let's say they are the best renters. I also like the idea of locking into a year lease. They don't really have any demands other than they'd like to stay for at least a year. They mentioned two just in our talks, but we'd have them sign a year lease. We would really like to get into this property as the market is developing like crazy around it and it's still on the early"ish" side of the market turn. The value of the property comps at 220k but in three years I see it being worth at least 260k or more.

My main question is can we seller finance like that and have the 15-20k down payment go towards the purchase price of the house? How would that agreement even be written?

Hey everyone! I have a question about a version of seller financing that I'd like to post to the group. My wife and I are looking at buying a townhome in an up and coming area right outside of Charlotte, NC. The current owners want to sell the property and then rent it back for a minimum of two years. I've come to learn that they have about 15-20k in appreciation that they want to take advantage of in order to pay off some credit card debt. They also want to "simplify" by just renting. Here is the scenario I was thinking about, but wasn't sure how it actually works. 

What if we offered them 15-20k in cash up front as kind of a down payment on the house and then took over their mortgage payments. But then they would rent it back from us at a higher rate. I know this sounds a little nuts, but it seems to solve a lot of "problems". It allows us to get into the property much cheaper than the required 15-20% down. It gives them the ability to pay off their debts. And it also allows us to take over the property. 

My question is, is this possible? Is it dumb? What are everyone's thoughts? Any advice would be greatly appreciated.

Hey everyone, 

I'm going to speak with someone today about potentially buying their property in Indian Land, SC. It's a townhome built in 2016 that's currently owned by a married couple in their mid 50s. They're asking 225k. They have expressed interest in selling the property and leasing it back for 1-2 years. They are the original owners. Since this is new territory for me, I'm curious if there are any questions I should ask other than the obvious. I can't imagine there are any major repairs on it since it's so new. I think Indian Land is blowing up right now, and my wife and I are looking for any and every opportunity to buy rentals here. I know the margin might not be great, but we're willing to play the long game on this part of town. 

Obviously I'll have a discussion with the sellers, but the main questions I can think of are:

1. Why are you looking to sell?

2. What do you currently owe on the property and what's your current monthly payment?

Really it's a "smell test" for me. If that passes, then I'll do a rental analysis and see if they're willing to pay. Besides that, am I missing anything huge for an introductory meeting?

I'll take a look. There are already multiple offers on this thing and it's been less than a day! Told you these townhomes were hot.

Hey Jared,

Thanks for the response! It's in SC. I'm pretty familiar with the townhome board, and there is not a significant history of special assessments. For 2017, the appraised value was $93,300 with an assessed value of $3,730. The base taxes were $1184.65 with a SC resident credit of $625.94. $375 in fees brought the total tax bill up to $933.71. How much higher do you think mine would be?

Also, there are multiple offers on the property already and it's been 1 day! 

Hey everyone! My wife and I are considering a deal and would love some feedback. We just finished our first flip in the Charlotte area on budget, under our holding time and sold it for more than we estimated. All in all it was a great first flip! Our goal in 2018 was to flip at least two homes and purchase one rental property. Right now we live in a great neighborhood in Indian Land SC, right across the NC/SC border. Our neighborhood has townhomes at the beginning of it and they are never for sell. They rent well, and when they list to sell, they're gone in under a week. One just happened to open up yesterday and we're considering making an offer. Here are deal specifics:

Purchase Price - 145k with 20% - 25% down (we think we can get it for less since my wife is a realtor and won't take the commission)

Only paint and carpet cleaning needed - do it myself but still budget in $1500 just in case

I'm estimating 8.3% vacancy, 5% R&M, 5% Capx

HOA - $120/month

Taxes - $1000/year

Insurance - $850/year

Rental Income - $1200-1300 (we think 1275 is reasonable)

With 20% down (roughly 34k with closing costs), we're looking at $200 positive cash flow after all expenses and PITI and roughly an 8.5% ROI

With 25% down (roughly 42k w/closing costs), we're looking at $300 positive cash flow each month but only a 7.1% ROI

The benefit here for us is that we are less than a mile from the townhome and drive by it every day. I'm on the HOA for single family homes in our neighborhood and have a good sense for the townhome HOA. I get this isn't the greatest deal out there, but for us it accomplishes the goal of owning a rental with as little headache as possible.

We also have a good pool of investors, so tying up our own cash in this deal won't hurt our flipping interests. And we'll still have excess cash to do deals as well. What do you guys think? Good or bad idea. Please ask questions and poke holes in my thought process!

Thanks in advance!

Hey everyone! I'd love your business insights on a partnership I'm considering. 

I'm thinking about going into business with a friend who is a custom builder and curious to know what the industry standard is for the business arrangement given our potential situation. To make a long story short, I would be in charge of raising all capital and handling the money. I have a full time job as a CPA so I wouldn't be able to be boots on the ground as much as I'd like in the actual construction. He would be in charge of building the home and acting in a builder/GC capacity. I like the idea of a partnership where he builds these higher end custom homes for his cost. My wife is also a realtor and would be buying the lots and selling the homes taking little to no commission.  The goal here is to align everyone's interests in getting the projects done quickly and efficiently keeping costs as low as possible. The outcome would be a sizable profit margin to split up between myself and the builder. Is this something anyone has heard of before. Does it make sense to have that 50/50 split, or am I way off base? I would really appreciate the community's thoughts on this one. Thanks everyone! 

@David Wales - just wanted to make sure you saw my question about which Leroy Fox the meeting was at. Thanks!

Hey David, I didn't realize there was a meeting tomorrow night. Is it at the one in Cotswold or South End?