All Forum Posts by: Duke Marquiss

Good job. Hope all is going well for you.

You may ask if he would provide seller financing in order to help you get this off the ground.  It could look like this:

1.  You pay 10% down and balance to be carried at 6% interest only monthly for 1 year.

2.  When you get a construction loan for your rehab costs, he agrees to subordinate his note if you pay down an additional 15% (which will come out of your rehab loan) and then increase his interest only interest rate to 7.5% for two years.  This allows you to get all rehab money from an institutional lender, do the rehab, rent the property out, stabilize and then refi into a long term loan and pay off the first and second while minimizing your out of pocket expense.  You will have to play with the numbers, visit with an appraiser or someone that has worked in your area to see how the final value plays out.

Each time that you change the use of a piece of property, you will increase the value.

That increase will give you the equity you need and the time will give you the ability to find a take out loan.  Most construction lenders will want to know that you can get a perm loan when the deal is done (you will need to see what the Perm lender wants to see and how the income will qualify you for the loan).

Best results to you.

Duke

Great podcast.  I am just trying to envision something that is scary enough to make me run a 100 miles.  Breaking it down into bite size to get it done is very visual.

I usually tell them, "Depends" on where the property is, condition, price, needed repairs, terms, price point for the neighborhood and the list goes on.......

I own houses in 18 different states and I have actually been to exactly 1 of them!

If I had a farm, I would tell them the city and state.  They may be wanting to sell something they have their eye on and just need a little help, so long story short, "Depends".

I find that the rule works best when money in a Roth IRA is invested in income producing assets such as note where you buy based on yield. Yield is not a real number but a target. A 15 yield will double your money every 4.8 years if you can keep all of the money invested 100% of the time. Not real but it is a very juicy target. Even a pilot flying his plane is off course 98% of the time but he gets to his destination. In any event, the money coming out the back side is tax free which adds value. I do not use the Rule of 72 in any other type of investment. Cap rates work better on leveraged income.

Are you related to Mort Utley???  He lived in Scottsdale and was on the Top 50 motivational speakers tour.

my wife's name is Ginger. Two most common names for dogs.  Real name is Douglas. My grandad had a dog named Duke and he thought that would be a great name for me.  My mother said she would never name her son after a dog. Duke stuck Douglas didn't. 

Come on out to Colorado.  Give me a holler when you do. 

You have a great first name. Keep up the good work.  There are a lot of buyers out there for what you are finding.

Dodd Frank, two of the biggest names in note financing and yet the farthest away from ever having dealt with financing.  Penalties are scary but the right attorney will protect you if you have them in from the beginning.  I don't buy any note originated after Jan 2014 unless it was originated by a bank.