All Forum Posts by: Emily Howlett

Hi all! I’m trying to convince a homeowner that seller financing is a good deal for both of us. So far I’ve thought of the following benefits for them, and I’m looking for help to see if the upsides are valid and or if I’ve missed anything:

- Keeps the seller from jumping to the next tax bracket due to income from sale

- Can defer capital gains taxes over years rather than paying all at once

- Monthly income over time

Any thoughts or input would be greatly appreciated!

@Kenny N. As has been said, make sure your lowball offer is based off analysis, not just magic math. If the math relies on necessary repairs, include an itemized list of what you expect to do plus the prices. Explain that with the repairs, the offer price has been reduced by $X.

@Roxan Wais-Shirley to echo what everyone else has said, be sure to follow the state and local regulations.

Additionally, check the condo rules - some specifically state guidelines for the units (aka owner occupied, long term rentals only, etc)

Congrats on being set up for success so soon after graduating, and welcome to the DC area! The area doesn't have a lot of multi-families, so maybe focus on just the house hacking concept with a single family house to start off. Depending on where you are, it can be pretty easy to find people to rent by the room. Once you get a feel for it and build up some cash reserves, the timing may work out that one goes up for sale. If you're able to maximize your saving and minimize your spending - which it sounds like you've already got a plan for - you should be able to work up to a pretty good scale to invest on a regular basis. I'd be happy to chat anytime, and again - welcome to the area! 

Hi Emysron! I'd recommend reaching out to @Sean McDonnell. He's down in that area and really great at working with investors.

When you say you listed aggressively, do you mean you listed at a very high price? If so, you may very well not be getting any offers. Even though it's a hot/seller's market, that doesn't mean you can get any price you want. To echo what a couple other people have suggested, relay your concerns to the broker. If they are withholding information on offers, that's a whole new conversation.

@Anthony King Unfortunately I don't. Sorry about that! 

To echo what@Matthew Irish-Jones said, there will have to be sacrifices. Ideally those sacrifices will be "small" things that won't be big issues. If they do have to be "big" things, make sure to talk it out. Communication is key! And to tie into what @Mike Davis said, have everyone pitch in. Instead of turning it into something that everyone dreads, make an adventure out of it. Ask the family what their inputs are. It won't make everything perfect, but it helps. 

I listened to a podcast a while back where the guest speaker was talking about how people who pull money out of properties to reinvest into higher-producing properties make more money over the long term. Examples might be when rents go up to rates you may not be able to raise your own to and or markets outside your own become more lucrative for investors. If you stay with what you have, you miss out on opportunities to increase your cash flow.

I think it really comes down to what the numbers tell you. If you can take that money out now and make a higher rate of return (whether that's on properties or some other investment), then go with that. Also keep in mind that there's risk with every new venture. If you end up not making as much, it's investing in your education :)

Brandyn Cox is a great option! He works in all states and does business with tons of investors https://www.bmctaxllc.com/