All Forum Posts by: Haim Mamane Palman

@Bill Gulley. The buyers will keep the property as a rental property so it's not an owner occupied situation here. Should I still be concerned with the Dodd Frank Rules? I don't want a mortgage originator to qualify them for me.

The buyers are experienced investors and the reason they want to do seller finance deal is because they max out the number of Fannie Mae loans they can qualify for. They have a good credit and good income and I will definitely screen them if we can agree on the terms.

Seems that I can ask for a higher interest rate in 8-10% range.

8% for 35% down payment

9% for 30% down payment

10% for 25% down payment.

Am I on the right track here @Bill Gulley?

The house was listed on FSBO sites as well as on Zillow, Postlets and the like so she offered me full asking price and now I'm trying to get the best deal I can get as far as the terms go. Obviously, I want to get a higher down payment and higher interest rate with short balloon payment. Even though every deal is different and one can structure this in many ways, I want to get an idea of what are the "standard" terms for owner financing deal.

For all the Owner Financing experts out there. I need your assistance doing a seller financing deal as the owner/seller.

I own a free and clear property and I had someone contact me and offered to purchase my property at retail price with me carry back a loan.

Her offer: Retail Price with 20% down (I asked for 30% down)

5-year-loan amortized over 30 year with balloon payment at the end of the fifth year. ( I asked for 3-year loan). She will get the deed, I will get a deed of trust with promissory note.

Interest rate 5-7%. What do you think is fair interest rate for this type of a transaction as the owner/lender. Should I ask for higher interest payment or points? I'm prepared to offer her lower interest rate if she willing to put bigger down payment.

The reason for me to consider such a transaction is the following:

- I invested about 47k into this deal and the buyer offer 66k which is at or slightly above retail price. So at the end of the 3-year I make a profit

- I get nice cash flow without dealing with tenants issues, don't worry about repairs or vacancy

- use the down payment money to invest in another property

- experience structuring such a creative deal

Do you have any tips for me as the owner? did I miss anything? would you do it if you were me?

Any advise would be much appreciated

feel free to connect.

Haim

1956 Carbondale Dr. Memphis, TN 38114

3/2 1256 sqft single story brick house built in 1976.

Purchase Price: 25k

Repairs: 15k-17k

Rent: $650-$700

Total investment: 43k

Double digit cap rate - 11% plus.

Complete Pro-forma: https://www.dropbox.com/s/tbzd08g53cp80id/1956%20Carbondale%20Memphis%20Marketing.pdf

For more pictures: https://www.dropbox.com/sh/5mij3rr16l3huwp/Z9L4XgldEq

Great property for a local and experienced investor or for out-of-state investor working with a local and experienced property management company that has experience managing properties in the area.

Send me PM if you want more details.

@steve cook. Welcome to the team. I'm also from San Francisco and invest in out-of-state markets, primarily in Memphis.

You are on the right track and feel free to connect.

Haim

Great SFH in Horn Lake, MS which is a suburb of Memphis, TN. House located in a safe and quiet neighborhood. Address: 2744 Heatherglen Cv. Horn Lake, MS 38637

House is fully renovated, 3/2 1280 sqft, and will rent for $750-$825

Comps: 5903 Kentwood Dr. Horn Lake, MS. Sold on 7/29/2013 for $83,012

2872 Waverly Dr. Horn Lake, MS. Sold on 8/30/2013 for $65,000

Asking - $67,500

House will generate great cash flow and has great appreciation potential.

contact me if you need additional details.

Recent Absentee Owners list from Listsource.com

To all the Memphis Investors,

what do you think about the DeSoto County in MS compared to Memphis as far as buying and holding properties for cash flow. Cities such as Southaven and Horn Lake seems like great quiet cities to buy properties for cash flow.

From my understanding, the schools are better, there is less crime compared to Memphis and you can still get great returns.

Your opinion is very much appreciated.

Damn. Can't believe I missed this thread. Hope to meet all of you next month.