All Forum Posts by: David McCready

Hey all,

I am currently negotiating on a 5 plex and the owner is willing to carry back 25% of the purchase price as my down payment so I can remain liquid.  The 25% would be amortized over 20 years with a 4 year balloon. The property is under rented by approximately $500/month.  

My question is how do I structure this with the bank that is providing the commercial financing on the remaining 75%.

I have found that if I tell the bank that the 25% is a carry back they don't want to loan on the property because I don't have skin in the game.  

Thank you in advance for your advice.  If you need more info, please ask.

Hello Everyone, Im still very new to real estate.  I live in Northern California and I will be marketing here with the primary intent to wholesale.  If during the course of my campaign I am able to rehab or hold a property I will. 

I started to establish my marketing campaign and prior to launching it I want to ensure I have the necessary tools to get properties under contract (i.e. I need contracts).  I have met with several attorneys now and each has told me I should not use a "standard contract" as each property is unique as are the terms of purchase.  

1. Before launching my marketing campaign, should I have a standard purchase contract or option agreement that is fillable so that I can immediately present it to a seller? A sort of fill in the blank form.  Or should I meet with a seller, come to a verbal agreement and then contact my attorney to have them draft a contract?  What is the common practice?

2. I do not have a lot of liquid cash and as suck I am very interested in purchasing properties subject to the existing mortgage.  Every attorney I've spoken to has either stated this is illegal or they have been un able to help me.  Should I have a subject to contract already drafted or should this be handled on a case by case basis as well?

I apologize for my lack of knowledge/understanding but if you could take the time to provide a detailed answer I would greatly appreciate it.

@Account Closed I live in Northern California and I am very interested in purchasing subject to.  What have you found?  Did you receive the "Kit" from @Steve L.?  I really need a contract.  I asked my attorney and she told me  sub 2 was "illegal," which I'm fairly certain it is not.  would anyone mind breaking the process down in very simple steps? i.e. Step #1: Get seller to sign contract (including a contact would be great!)  Sorry, I'm a check list person. 

Thanks in advance!! and sorry to ask so many question on your thread @Account Closed

@Ayodeji Kuponiyi, I was wondering the same thing.  

I'm a cop... Definitely call 911. If you don't and something tragic happens, you just opened yourself up to a civil lawsuit. If it is a medical emergency (which being drunk can be deemed if the individual is incapable of caring for themselves)!we can force entry and have the individual medically cleared by paramedics. Best case for you, I (cops) place her on an application for a mental hold due to her inability to care for herself, or the medics transport her to the hospital (of she agrees to go). Either way, provided you properly posted notice to enter the property you now have uninhibited access to the property and you may have saved your tenants life. Cops are the only ones who can force her to leave the property or gain access for you. Whether it be for via a mental hold or a civil standby where we sit there and babysit while you do your work and she throws a fit. I actually went a call (I was the 3rd officer to go) where a naked female was passed out on the living room floor of her residence due to alcohol. Based on her condition and the condition of the residence I felt I could articulate she was a danger to herself. Needless to say I took her into protective custody, medics transported her to the hospital where she coded and eventually passed.... Always call 911. Your inconvenience is not worth there life and it often works to your advantage.

Hey all, thanks for the replies! I want to get back to you all unfortunately I am out fly fees in Nor Cal at the moment and reception is spotty at best.  I'll get back to you as soon as possible. Thanks again for the advice.

David

Hello Everyone, I live in Sonoma County California and I am currently planning on pursuing long term rentals with flips in between. The more I research the market, the more I feel that out of state rentals are a wiser choice due to prices. My questions to you are as follows: If I go out of state, how do you recommend pursuing properties? I'd rather buy a home before it hits the mls. Should I fly out of state to personally inspect every possible deal? This seems costly... Any advice on how to wisely purchase out of state properties. Should I use a PM? The out of states areas I am considering are Austin, Tx and Lynchburg, Va. Does anyone know these markets and whether or not the are suitable for a long term rental strategy?do you have any trusted contacts in these areas that you would not mind sharing (PMs, agents, handymen... Etc) Thank you for your time and advice. David

thank you all! So far I cannot get enough of this site and speaking with everyone about their experiences. Thanks for the replys!

Hello, My name is David McCready.

I live in Windsor, CA and relatively new to real estate investing.  I'm currently a full time Police Officer and a UH-60 pilot in the California Army National Guard.

I love my jobs, but to be honest, I do not want to be a wage slave the rest of my life.  I have been searching for a business idea that I am passionate about and I always end up coming back to real estate.  I've always thought it was too expensive for me to start my own real estate business in my area until I found this site.  I just purchased my primary residence last May ($415,000)... thankfully it has already earned quite a bit of equity. 

Beyond the aforementioned reason, I want to get into real estate investing because I want to be home more with my family.

My plan is to focus primarily multi family units for long term passive income with flips in between.  I am currently in the education phase, but my goal is to purchase my first investment property in the next twelve months. 

Thanks for the time!

David G. McCready