All Forum Posts by: Elliot Angus

 Again, that is if they decide to go forward with the sale, I guess worst case is that I obtain the equity and a mortgage at 3.75%...

You’re absolutely right Chris. The down payment to acquire this sub to is $25,000.

Personally I passed on the deal, but the opportunity was to take over the deed with the existing rent to own tenants.

I recently came across an interesting opportunity and thought I’d share the details.

Mortgage Details:

• Outstanding Balance: $70,000
• Fixed Interest Rate: 3.75%
• Monthly Payment (PITI): $950
• Loan Maturity: May 2045

The property’s current market value is around $225,000, leaving significant equity on the table.

Tenant-Buyer Situation:
The property is currently occupied by Rent to Own tenants. Apparently they handle all property repairs and maintenance independently and have maintained a perfect payment history, even throughout the pandemic.

Lease Option Agreement:

• Effective Date: November 1, 2022
• Terms:
• • Purchase Price: $165,000
  • Non-Refundable Down Payment: $10,000
  • Lease Term: 3 years (ends October 31, 2025)
  • Final Payment: $158,000 balance due upon term completion
  • Monthly Payment: $1,150 (no rent credits)

I didn't see this to be a deal because if in a the best case scenario my $25000 would walk away with 2400 which is about a 9% ROI. Now the 9% doesn't seem to be a terrible deal, but then I calculated the risks involved. This sort of deal could go south very easily and for that reason I stayed away.

What would you do?

Hello, I am looking to purchase part of a portfolio. The scenario is: The seller (ie. John) currently owns 6 properties. John is looking to sell 1-3 properties now and reinvest some of those proceeds into the remaining 3 properties. In 3-5 years, John is looking to sell off his entire portfolio using a deferred tax 1031 exchange. John may find some difficulty selling an entire property package in such short amount of time. 

This is where I believe I can come in. I want to present Investor A with a hefty down payment to cover improvements of his other assets, while also offering owner finance terms so that in the 3-5 year period he can “sell” the properties to me which I have been paying off throughout the time, so that investor A can successfully 1031 into another investment at that time. 

Questions: 

who can I reach out to for proper terms and complete understanding of 1031?

Would investor A be able to defer capital gains in a situation like this?

What other options do I have to acquire these properties?

Any and all information will help!

 Edit: This really doesnt make sense at all. Thanks guys.

Hey everyone,

I thought of this hypothetical scenario where I would do a seller-financed deal on a property valued at $250,000. I plan to put down $100,000, leaving a seller-held mortgage of $150,000 at an 8% interest rate with a 3-5 year balloon payment. 

The plan is to: 

- Make regular payments on the seller-held mortgage for the agreed-upon term.

- Pay off the balloon payment at the end of the term.

- Immediately refinance the property with a traditional bank mortgage to pull out a significant portion of equity. 

Does this strategy sound feasible? Are there any potential pitfalls or risks I should be aware of? I'm concerned about potential issues with refinancing, such as property valuation, interest rates, and lender requirements. Any insights or advice would be greatly appreciated! 

Thanks, Elliot