All Forum Posts by: Dillon Kenniston

Welcome @Anthoni Heffernan! You've found a great community in the BP Forums. Time to get after it! Cheers

Thanks, everyone! This has been tremendously helpful.

@Steve Vaughan, you mentioned you would sell on wraps, but would not buy them. Could you expand on why?

@Nathan Gesner Makes sense, thanks for clarifying. What we described is what I meant by a "wrap" mortgage. (Hope I was using the term correctly.)

So it sounds like the implication is:

• 100% Equity = 100% seller financing available
• 1-99% Equity = wrap mortgage available (proportional to whatever equity the seller has)
• 0% Equity = sub-2 

Would y'all agree?

Thanks, @Nathan Gesner Totally agree; seller financing at where equity is 100% seems to be the most straight-forward.

In addition to that, I've heard of some investors using creative financing strategies where they'll offer seller financing on some portion of the purchase price that reflects the owner's equity. Something like...

• Purchase price = $100k
• Owner's equity = $50k
• Offer = seller financed $50k + conventional mortgage for $50k

Saying much beyond that is where things get fuzzy for me, especially when considering sub-2 and wrap, and how/if equity percentages privilege one structure over another, all else being equal.

Or, as with "pure" seller financing, why would seller financing require 100% equity if the above-bulleted structure is possible? Do the benefits of using this structure diminish the lower the seller's equity?

Hi BP team,

How should a property owner's level of equity inform the structure of seller-financed offers?

I love the idea of making multiple offers on a property where total offer amounts differ based on financing structure. But seller's financing seems to require differing structures relative to the property owner's equity. For example:

• Very little equity - subject-to?
• Moderate equity - wrap mortgage?
• High equity - full seller financing?

Am I even in the right ballpark?

Thanks so much!

Hey there BP fam. I've just put in my first offer EVER. It's a quad owned by another investor. I want to submit 2 or 3 different offers instead of 1 showing the offers and how I arrived at each (i.e., one with traditional financing, one with seller's financing, etc.). 

How does submitting multiple offers work? Multiple P&S's? A spreadsheet? An LOI? Does anyone have a template for what they've used to submit multiple offers showing a breakdown of numbers explaining each offer?

Thanks!

Hey there @Ryan Murdock , great show! Just finished listening on my way home from work. Super helpful to hear about the downs as well as the ups in REI.

Two questions kept circling through my mind while listening to the show. The first question may betray the fact that I'm a total newb, but you mentioned your early deal(s) went upside down primarily because there was immediate need for renovations. Why didn't you go the 203k+FHA route? Was it because of the job situation, how the deal was funded, etc.? I ask because I haven't personally done any deals yet and don't know what restrictions (if any) there are on 203ks.

Second question: You mention you've more or less systematized dealing with difficult inherited tenants. Can you share a bit more about your process, steps you take, etc.?

Thanks!

Hey there @Erik Snyder . Sorry to revive an old post, but it's been some time and I'm curious about your experience in the Philly area. (I just moved from Philly to Doylestown, but am considering a property in the Norristown area.) Did you move forward with that property? If so, did you come across any difficulties with the municipality's U&O docs? Transfer of title? etc.? 

To Greater Philly area investors generally, curious what systems folks have in place to ensure compliance. Apologies if this is already tackled in another thread!

@Odie Ayaga  Very cool! So you just started recently too? Or flipping is a new niche for you? I work full time as a product manager for a fintech firm, so the hours are crazy. My wife and I are hoping to start with something manageable, on the 2-4 unit end. Nothing commercial out the gate--maybe next year though. How'd you get your start in real estate?

Hey @Joseph Scorese , thanks for the tips! Any recommendations on resources for negotiation practice? I've read a few books on the subject (most recently "Getting to Yes") but would love some real life practice. Thoughts?