All Forum Posts by: Dean Suzuki

Hi. 

I'm live in Orange County as well.  I would also recommend networking with the folks on BP and continue listening to other podcasts and read books.  I invested out of state and am currently evaluating opportunities in San Antonio where the average home is $70K.  You might also want to look into notes or hard money lending.  I have done some hard money lending and am investigating notes.

Thanks

Dean

Thanks for the replies.   I was thinking that the buyer has hit their 10 Fannie Mae loan limit and is looking to pickup additional investment properties without paying 100% cash for them. 

But, it would be interesting to pull their credit and see what their credit is like.

I was discussing the credit worthiness of the buyer with my realtor and he said that since they would be putting up close to $115K down and if they defaulted, then I would get the property back plus their downpayment so this would reduce my risk and increase their desire to continue to make payments. 

Made sense to me but am open to everyone's input.

Thanks for the advice ,

Dean

Hi,

I am selling 2 four-plexes .  I got an offer but was asked for seller financing.  I have never done a seller financing deal before.  So, if the BP community can help me and share any advice/wisdom/gotchas to avoid.

The numbers are:

• I am selling each fourplex for ~$200K .
• I owe about 85K on one of them and on the other one, I own free and clear.   My bank will not allow wrap mortgage so I will have to pay off this loan.
• I believe that closing costs will be about $28K (6% comm + closing costs)

My realtor mentioned that the buyer is willing to purchase for 25% down.

I am thinking that the variables are:  purchase price, % down, loan term, and interest rate.

I would like not to have to put any money in to close so I am thinking that I should ask for at least $115K down ($85K mortgage payoff + 28K closing + 2K buffer).

My realtor mentioned that a typical interest rate would be between 8-12% and recommended 9.5% on a 30 year amortization and I could request a 3-5 year term.

My questions are:

• On the purchase price, should I push for a full purchase price since I am accepting the seller financing.
• What loan term should I push for?  3 years, 4 years, 5 years or longer?
• What interest rate should I push for?   Is 9.5% about right?  Too low?  Too high?

My motivation for selling the fourplexes is to re-invest the capital into another investment.  So, this is not an ideal offer but its interesting.  I am also looking at it as great learning opportunity.

I welcome any advice.

Thanks,

Dean

Hi,

I am considering buying a property through ATW Investments in San Antonio Texas.  They are like turnkey operators.  They help you find a deal, then help you rehab it, and then sell it to a homebuyer and you hold the note.  Their strategy is that since you're selling the home to a homeowner versus renting it to a tenant then there will be less headaches.

I was wondering what other people's experiences has been working with them.

Thanks,
Dean

Wow.  Thanks for all the feedback.  I appreciate it.

Thanks BP Community,

Dean

Hi,

I have a SFR in Surprise, AZ. My prior tenant just left so I am listing it for vacancy. We got a good application from a Military couple that are asking for 2 year lease but they need a washer/dryer added to the home. I am from a Military family so am partial to supporting the Armed Forces.

Has anyone encountered this scenario before?  I am debating about purchasing the washer/dryer (~estimating about 1200-1300 from looking at Home Depot) or potentially renting them from a furniture rental company and building it into the rent. 

 Has anyone encountered this scenario?

Thanks

Dean

Hi Christy,

I purchased a SFR in Temecula (for $220K) and another SFR in Murrieta (for $205K) in 2011. They have done well as rentals. I believe that they have also appreciated about 100K. However, if purchasing today, I'm not sure if they would cashflow at 300-350K. I would definitely check the rent rates and put them through a deal analyzer. If you are looking for a real estate agent out there that understands investing, I can share my contact if you want.

Thanks,

Dean

I am looking into this myself.  You can get an estimated refund from the bewaterwise.com site (for Southern Ca anyway).

Wow.   Thanks for all the great advice.  I am overwhelmed and learned so much.  Thanks everyone. 

I've asked for the past two year tax returns and will update when I get the info. 

Great point, Steve Babiak on whether his income is gross before business expenses.  I'll check.

Thanks,

Dean

Hi,

I have a tenant that I am screening for a SFR property that I have in Dallas, Tx and wanted to get the input of the community of whether they would rent, or not rent, or have recommendations on things to check further.

I went through Brandon's tenant screening guide and am not sure.

The applicant makes $5300/month.  The rent that I am asking is $1395 (so income is 3x rent, check).   The problem is that the applicant owns a barbershop (since 2010) and the income is not verifiable via a paystub.  The tenant has been living with family for the last year so he doesn't have any landlord references.  He has a clean background (no criminal activity) and no evictions came up on the credit/background search.  His credit score is pretty low (520 or so) and it looks like its because he doesn't have any credit history (no loans, credit cards, etc).   He is willing to offer 2x the security deposit and has about $8K in his bank account. 

It seems high risk, but wanted to see what others think.

Thanks

Dean