All Forum Posts by: George Voutsinos

@Bud Dwyer I've been looking at the Cleveland market and it sounds similar to the Ohio market you described.  You really have to do your homework before jumping into a long distance market.  There must be a reason they're so cheap.  Might be a high vacancy rate in the area where it's extremely tough to fill rental properties.  Wouldn't hurt trying to link up with a real estate broker in Ohio to find out the story.  

 Sounds like you'll need to set up a balloon mortgage type of schedule if the owner will only finance up to 5 years.  Find a good real estate attorney that is familiar with contract for deeds.  Check out this link, it will tell you everything you need to know about balloon mortgages. 

 http://www.bankrate.com/calculators/mortgages/balloon-home-mortgage-calculator.aspx

 Awesome!  I will do that, thanks again Jessica!

 Thank you for the insightful advice Jessica, much appreciated!  Excellent ideas!  We are going to weigh our options.  

 No we didn't get a chance to do that. That's why I was hoping to find a real estate attorney here in Philadelphia that's familiar with contracts for deeds and can reach out to his attorney.  His attorney automatically dismissed the idea without having any great detail, proof of funds, etc.  My guess is that he's never heard of it or never executed a contract for deed and didn't want to deal with it.  I told him in the letter that I can have an attorney draft up the contract or even his attorney could draft it up if he felt more comfortable.

Also, it's a triplex that's fully rented.  Those payments would help offset if not cover the payment in full each month to the seller.

 John we didn't get into the numbers in great detail.  I did tell him he'll get his asking price and I did show him an example of what type of return he would get over the course of the loan.  The language of the contract can be written to benefit the seller and minimize any risks.  If any payments are missed the property can be deeded back to the seller.  

Received a phone call from one of our letters we sent out and as I was talking to the seller and listening very closing I was getting subtle hints that seller financing may be a great option for both of us.  One, they were unhappy with the capital gains tax when they sold their other properties.  And two, they were unhappy with the returns they were getting from their money sitting in the bank.  Perfect opportunity for seller financing.  So I explained everything to them in great detail and they were on board BUT he wanted to run it by his attorney first and he had a meeting with him in a couple days.  So the very next day I mailed the seller a letter explaining what we discussed on the phone and how the seller financing option would work listing all the benefits, etc..  That way he'll have something to show his attorney when they met.  WELL, the attorney told him it's too much risk and now the seller doesn't want to pursue the seller financing option.  Are there any attorneys on this forum that are familiar with seller financing and contract for deeds?  I'd like to have an attorney familiar with contract for deeds call his attorney.  Many times, when someone has never heard of something before or knows nothing about it they automatically rule it out and label it "too much risk" or think it can't be done.  

Please let me know.

Thank you.

We'd be the project managers.   Dealing with the architect, hiring the general contractor, budgeting, etc.

I've come across a situation where an owner has (2) vacant lots next to one another where they'd like to build (2) new homes and sell them.  They have no experience with a project of this magnitude or any construction experience whatsoever.  My question here is, has anyone ever partnered up on a deal with an owner like this before?  How did you structure the deal?  How was the profits split up?