All Forum Posts by: Josh Dillingham

@Gabriel Farfan according to your Wikipedia page you still play for Miami FC! Maybe you could use some of your liquidity to by a multifamily all cash(if you are talking about going outside of CA you could buy 5+ units for $200,000 in many parts of the country.) then after a year or two of cashflow you could refi and use the equity to build your portfolio, using Real Estate Professional as your job title. Or being a former MLS player I'm sure you could get a job related to soccer and use that title to appease lenders.

I am currently under contract on a 5 unit Apt. bldg. in Vermont. originally this was going to be a 20% down payment with 80% owner financing at 5.5%, three year balloon, amortized over 25 years. but the seller, who owns the property in an LLC, is being told by his attorney that he can't seller finance because of federal regulations. I don't have the specifics on the sellers situation but my attorney is saying it may be because he has already done a certain amount of seller financing and he would be required to get a lending license to do more. Can anyone tell me more about this? Is there any way to make this work? Would it change anything if we set up an interest free loan and I raised the offer price to compensate for the zero interest?

Originally posted by @Stuart Nebeker:

my wife and I have 720-740 credits scores so assuming the property shouldn’t be to hard

 I would check with the sellers mortgage company first to make sure they would entertain it. It's my understanding that most mortgages are not assumable. I know the mortgages I have are not.

@stuart nebeker, sorry, obviously didn't read close enough. I see that she owes $125k

Why would you need seller financing if you can assume the current mortgage? Does she own more than $170k? If so and the agreed upon price was $170k I would make her pay the difference to the mortgage company to bring the mortgage down to $170k before closing. Does her mortgage allow the loan to be assumed? If not you run the risk of the due on sale clause and you'll have to come up the full price of the mortgage quick to save the property. What would your cashflow be after you refinance for the 300-400k it will be worth? I would think you'd have negative cash flow at that point with the higher mortgage.

Why isn't conventional financing an option on this deal? Do you not have or want to put the down payment?

@Timothy Hall I also wanted to say that if you are buying your first property and it is a single family it might be a bit overwhelimg for you to worry about having everything in place before you even identify a property. find a good deal, get it under contract and figure the rest out step by step as needed. you said yourself that you have been thinking about this for a long time. if you are in the mindset that you have to have the complete puzzle solved before you mak your first move you'll be sitting on the sidelines forever.

@Timothy Hall finding financing isnt that difficult if you have 20-25% down, good credit and your getting conventional financing. the first thing I would do is make sure you know what a good deal in your area is and analize a lot of properties. have a solid idea of your market ie rents, types of tenants, property taxes, sewage and water rates, insurance rates, cap ex and maintenance expenses, good parts of town vs bad parts of town. when I look at a property I determine the monthly cashflow I want then take into account all the expenses and make an offer that will acheive that monthly cash flow. its a financial decision dont let your emotions get in the way.

to @Russell Brazil point, if you aren't maxed out with Fannie and Freddie why aren't you looking into a conventional refinance?

loan with a 7 year term, amortized if 7 years. is that correct?

it's impossible to know if you entered the numbers correctly without knowing what the numbers are. it looks like this calculator is showing you have an 8%