All Forum Posts by: Graham Nash

HELLO BP!

Recommendations please, Whole life insurance provider that offers a dividend? Maybe they all do, I really don't know... 

The infinite banking concept interests me, and whole life insurance is crucial to the method. 

I'd prefer that you're not selling it, or at least not trying to sell it to me at this pint, but do have some experience/knowledge dealing with it.  

I'd appreciate you thoughts...

Thanks for your time,

Graham

@Christopher Phillips That's great advice. Thank you for taking time out to share with me. 

I'm about to place a new tenant in a property that I would like to sell within the next year. I'm sending him the lease in the next week. I would like to offer an option to purchase, but I've never done this. 

-Do I put a purchase price in the lease now, or wait for the year is up, to use most recent comps?

Any additional thoughts are appreciated.

Take care, Graham

BP,

I found a solid little brick house that is vacant. I located the owner through the tax assessors website. She lives out of state. I contacted her through Facebook asked her if she was interested in selling the house. She said she would be glad to talk. We did and it turns out that she doesn't want anything other than payoff for the property. She has fallen behind and just wants it gone. Her mortgage is through a USDA loan, which are pretty common around here. 

My question is this. How would I go about acquiring her note? If I can, is there any way to reduce the amount that she now owes due to late fees? I'm sure she has delinquent property taxes as well. 

She told me she owes $56K now. I think the property could bring $80K with some help. It's brick and was built in 93.

Any advice or thoughts would be greatly appreciated. 

Thanks for reading, 

Graham

@John Leavelle, @Michael Wagner, @Anthony Dooley

I appreciate the feedback! I'm still working the deal. I met with the seller and agent last Sat. we sat down and talked about what we both needed out of this transaction. He isn't willing to carry very much of the financing. He's in a downsizing phase. He would carry some of it, to make the deal happen, but not for very long. I think typical financing is the way to go in this situation. 

As for the $111K contract price (which I haven't executed yet), it's a fair price. It's a good deal, not a great deal. I think I could sell the SFR for around $69K and make it a better deal. It has a higher value, and generates less rent.

At this poitnt I'm searching for the financing that best suits this deal. So far, I'n getting commercial loan rates and terms, 6-7% and 12 year ARMs. I've never dealt with an ARM, so it's making me uncomfortable. I think it's almost a given that interest rates are oging to incerease over the next few years. It's just a matter of how much...

The other angle that I'm trying to work is that I'm legally blind. So I'm hunting for any type of loan that I might qualify for due to a disability or disadvantage It's probably a long shot...but...

If anyone knows of anything, please sen it my way.

Thanks again for the feedback, and taking the time to read.  

Graham

BP,

I need a hand, please. Here’s the package deal…

1 duplex, 1 SFR, owner doesn't want to sell them separately. I'm looking at/for financing options. My goal is to take advantage of a fixed rate, long term conventional loan/s. It's my understanding I have access to at least 10. True? I've tried 8 local banks, they all want to go the commercial route. Which means an ARM, short term and more out of pocket costs.

I’m in Macon, which is in the middle of GA. Atlanta is really close. If anyone knows of a bank there that offers this type of loan, please let me know.

Also, I’ve never used an out of state lender, but I’m not opposed to it. I have a couple of names, but would really appreciate some references based on previous experience…

Thanks for reading and have a good day.

Graham

Well they countered my $90K with $111K. It's not what I was hoping for, but I think I'm going to go for it anyway. The numbers aren't great, but it's the relationship with this seller and agent that I'm hoping to cement. 

The seller is an older fella, and turns out he has a few more properties, including an 80K sq ft commercial space that 's fully occupied, and ties to the older investing community around here. 

It might not amount to anything, but if it does, the $11K wont haunt me. 

@James C.

Yes! Those are the types of ideas that I'm looking for. Splitting the properties...hadn't thought about that. I could find long term conventional financing on the SFR and offer to buy it out right. Then ask for seller financing on the duplex. He gets his asking price, a chunk of change and monthly income. I get cash flow, and probably don't have to come out of pocket as much for a down payment.

That might just work...

Thanks! 

@James C.

Jim, 

Thanks for taking time to read. Based on our conversation at the walk through, the seller has reached an age where he is just wanting to get out of his investment properties. 

2 things he said led me to ask about the seller financing. He recently purchased a home on a lake and wants to put some money into it. 

2) He told me he is going to miss the monthly income...

I offered him the $90K based on a commercial loan. If he is willing to finance for a longer term with low fixed rate, I would have much more room to offer. 

Question, Is the offer dependent upon financing or the property? Or is it both?

I think i have answered my own question, but would appreciate feedback. I am also going to take your advice and continue reading. 

Thanks,

Graham. 

BP,

I’m looking at 2 properties that were brought to me by an agent, but aren't on the market. 

Property A) SFR, brick 3B/1.5, 1570 Sqft, tax=$80 per month, insurance $65 per month, rent $875 per month. I would call it a B house, in a solid B neighborhood. Property has tenants and they seemed to be ideal. Place was clean, neat, no bad odors, no junk...

Property B) Duplex, brick 5B/2b, 2054 sqft, tax=$65 per month, insurance=$65 per month, rent $1075 (total for both sides) per month. Again, B property, B neighborhood. One set of tenants were clean and organized, other side could use some help. Not terrible, but I wouldn’t eat with them.

Total, the properties could use about $3-$5K in general repairs, cosmetic, etc…. The owner has held SFR for 4 years, duplex for 35. He's asking $120K for the package.

I own 3 SFR, but have purchased them through a wholeseller (BRRR strategy), with whom I have a solid business relationship. I've used the numbers from those deals, to determine what I should offer this seller. The number I get is $97.5K, so I offered $90K ($30K below asking). The agent said the owner probably wouldn't even counter that. So I didn't break the "rule of insult" with my offer…

Turns out the seller wants to meet tomorrow, and discuss financing. I floated the idea of seller financing at the walkthrough, and it wasn’t shot down. However, the more I thought about it, I’m not too sure about the seller financing option. I think it limits my ability to negotiate. That’s probably from a lack of experience. My original offer was based on conventional financing.

I know there are creative ways to structure a seller financing deal. I just don’t have the experience. That’s what I’m looking for here…Any suggestions?

Thanks,

Graham