All Forum Posts by: Elliott Sanchez

Hey BP-

I'm a Realtor/Investor in Austin, TX. I've been an agent for 10 years and have created a great business. I've been investing for a few years, own three rental properties, and have completed one flip. I currently have enough capital to fund two flips with hard money and I am looking for a contractor to partner with on a deal or two and possibly more. I envision a partnership where I'll be in charge of finding and putting the deal together. I will also focus on the budget and selling the property. I am looking for a contractor who has experience. Someone that has managed projects and is used to operating within a budget. This person must willing to jump in with some sweat equity so we can maximize our ROI, and a bonus would be if this person has capital.

Feel free to message to carry on the discussion.

Thanks,

Elliott

Hey BP-

I am acquiring, with subject-to financing, a 2001 Palm Harbor MH (4 bed+study, 3 bath, 2400 sq ft) on an acre lot. The home has newer roof, newer HVAC, and 14 yr old septic system in good condition. It is in an area with several mobile homes on large lots and about .5 to a mile away from new construction homes and a new hospital. I am looking for advice, and a strategy, on how to maximize my returns. I have acquired the MH and property with my SDIRA. Oh yeah, the seller at this time doesn't mind how long I hold on to it, and there is 15 years left on the note.

I was considering selling the property with seller financing but I don't think this is the best option, yet. At this point, I think I will rent it out for a couple of years, especially since I have newer systems on the home. Then in a couple of years sell the home and property with seller financing. This is my first mobile home/land deal so I don't know what I don't know. Please share with me any thoughts and strategies on how I can maximize my ROI.

Thank you in advance for your time and advice!

Elliott

Thank you for your time, I read every reply and I learned quite a bit about seller financing from the responses. There was a ton of great information. I am able to qualify for a conventional loan so I think it's best that I explore that option first.

Hey BP Fam-

I have a potential seller financing deal on a fourplex in Austin and I need some advice. I'm an agent and I represented the buyer on the purchase of this property a few years ago. The property is 100% occupied and it has been since my client purchased it. In addition to being in an area with high occupancy (like most of Austin), it is also in an area that has seen good appreciation, about 3-4%. My client owns the property free and clear he generates a 9% return on his investment. The trouble is he has had a terrible time with property management companies so he wants out. I approached him about purchasing it with seller financing, explained seller financing, and it has peaked his interest. Since I have never put together a seller financing deal I have several questions about how to structure the deal. Conceptually I understand seller financing but I don't have the experience, yet, to structure a deal. Here are a few of my questions-

1. He is asking for a interest rate of 9% and I know this is high. I understand it is all negotiable, but is there an average? Or, are all deals structured differently? Is it possible to pay more for the property for no interest on the loan? 

2. Is there an average loan term? I was thinking 5 years but I think the seller may prefer a shorter term. What risks are associate with a shorter term loan?

3. Is 5% too low of a down-payment?

4. Market value is $260K. If I paid over market value, let's say $280K, with a 3-5 year term, and 0% interest rate; would this be a good deal? Or if a 0% interest rate is out of the question. How about an offer of $280K, 5 year term, with a 5% interest rate? Would this be a good deal?

5. Am I missing anything?

I guess I should mention that I would be cash flowing approximately $500 a month in cash flow (net-net).

Thank you in advance for reading this long post, and for any advice that will follow.

Cheers!

E

Thanks everyone. I'll take a look at the banks mentioned.

I am looking for local banks to obtain a line of credit for investment properties.

Thanks, Rob.

ES

Thanks for the replies, Gentlemen. 

Nathan- Are you applying for conventional financing? As an agent, I am very familiar United Lending as they are a larger company. Do you know if they allow shorter-term seasoning for flips? 

Jeremy- If you can find your contact from Horizon Bank that would be helpful? I am looking to establish a relationship with a bank. Also, I hadn't considered the time frame in which a bank vs. hard money can close. Thanks for pointing that out.

Hey BP-

I am an agent/investor in Austin, TX looking to finance a few fix and flips. My questions is should I use hard money or financing from a local bank to finance the deal? I have great credit and some cash in the bank, 401K, IRA, etc. I would also be interested in any recommendations for a local bank that works with investors or hard money lenders?

Thanks in advance!

Elliott

Hello BP-

I am an experienced real estate agent and amateur investor located in Austin, TX. I'm looking to learn as much I can from the BP network. Thanks in advance for any help!