All Forum Posts by: Dustin Burke

@Stephen Burtin Thanks for the podcast recommendation. I listened to it twice.

@Mitch Messer Thanks for recommending Dyches Boddiford. I will look into this course.

The "Subject To" model is solid. To simply take over an existing loan and then inheriting the equity is brilliant. And then you still have cash flow when you rent it. 

The strategy I am considering is more along the lines of purchasing and funding the rehab with cash then refinancing, pulling out just the cash I have invested; then carrying the note (at a higher interest rate and slightly larger monthly payment) for the future buyer. 

This makes the deal cash flow even better as I don't have to account for capital expenditures or vacancy. What I don't have figured out is who's name the deed is in at the time I start carrying the note for the new buyers? If it's in their name then I also will not have to pay taxes and insurance...  OR for tax reasons would I want it in my name until paid off?     Thoughts???

Has anyone seller financed a property when you still had an existing mortgage? 

Is this legal?

What are the pros & Cons?

What are the situations someone would consider this transaction? (ei: better cash flow)

Dustin

Has anyone used sell2day.com to generate leads?

If so, what are your thoughts?

@Christian L. have you engaged them yet? We have a call lined up for this afternoon and wanted to get your take on them... Thanks, Dustin

Has anyone joined Connected Investors Inc.

I am curious if anyone has any negative or positive experiences with this company?

You all gave us some good things to consider. This deal would be a great start for us if it works out but we are not going to force it If it works out great if not we will just move on to the next one. Thanks for all the help. I will definitely post the outcome if we land it.

@Henri Meli - what I meant by cap rate looks good is that the average cap rate of the market the apartments are in is 10%. At current asking price the cap rate is 7%. After paint and carpet the rents will increase raising the cap rate to 14%. 

However, I am still struggling with getting it to cash flow. I am still waiting on all the info so I have some hopefully conservative numbers I am using. It is an interesting deal with some creative financing possibilities. 

The story I'm getting why the owner wants to sell is that he has gone bigger and wants to off load some of the smaller properties.  Thanks for your feedback. You had some very good observations. 

Agreed @James W.. It is a bit risky. Id things went South we could definatly find ourselves in trouble... 

Thank you @Hadar Orkibi for your comments. Yes, agreed - $100/door minimum. 

It's interesting to hear everyones opinion on percentages assumed for management, maintenance, cap ex, & vacancy.

Thanks ALL for the help. I will definitely stick to $100 + per door. I am borderline with the DSCR but I we are still in negotiation phase.