All Forum Posts by: Hoa Nguyen

@Chris Seveney oh wow didnt even know that was possible on CFD situation where the seller still has a mortgage by the end of the balloon. Ill definitely look into it!

Hello all, wanted to pick some brains for my owner finance investors. I've secured some owner-financed properties on 7-year balloons. Planning ahead, I want to know what you recommend when it comes to refinancing. There's obviously the conventional route, but the whole reason I approached these deals with this financing was to avoid the 20% downpayment needed. When I refinance (or technically purchase) the property down the line, is there a financing route that minimizes those downpayment costs? Or do I start budgeting now?

Zillow SOLD prices are pulled directly from local tax and MLS listings. The only way they are inaccurate is if the listing agent or tax rep inputs the wrong info. Believe it or not, this is common depending on your area, especially in historic neighborhoods. Always do your due diligence and cross reference where you can.

Expressing that you have connections and convincing the seller of the strength of those connections is key. 

If the home you are wanting to wholesale is listed as an FSBO, a pitch that may be intriguing is that they wouldn't have to list and pay realtor fees and that in wholesale situations, the buyer pays the "finders fee" in most cases.

Key things that I have picked up on with convos with experienced out-of-state investors. 

1. Have a good realtor, contractor, and property manager connection.

2. Look in areas close to, but not in, major cities. Many people commute to work in those cities, and the outskirts provide more available investment opportunities.  At the same time, don't look to far as the farther you go away from a major hub, the more likely homes will be purchased not rented.

3. DO YOUR DUE DILIGENCE. Sometimes deals are too good to be true, make sure to do your detective work. You could save thousands. 

Hey everyone, have a quick question. I have been really interested in pursuing some CFD deals, but I want to understand the dynamics of how those deals are structured that way I know how to word an offer. Specifically, when the seller still has a mortgage, who actually pays the mortgage? Does the seller still pay using the funds that the buyer provides via financing, or does the bank create a new relationship with the new buyer? Up until this point, I have secured my owner-financing deals with sellers who have paid off their mortgages. I wish to avoid the direct "mortgage assumption route" and was under the impression that CFD deals are the way to go for that. Just some clarification or maybe a situational breakdown would be great, thanks in advance!

I apologize if you have seen this posted multiple times. Kept getting an error when submitting, and I guess it glitched out because it posted 4 times lol

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $121,000
Cash invested: $5,000

Bought my first turnkey rental property using the owner financing method. The seller had already paid off the home, renovated it, and it was ready to move in/rent.

What made you interested in investing in this type of deal?

Reading 0-75 Units in Year by The Kwak Brothers, and understanding what they call the FORCE method of investing.

How did you find this deal and how did you negotiate it?

Found on Facebook Marketplace. After running comps in the area, I found that it was very undervalued. The comps ran about 125-130k. Keeping that in mind, I offered $121k with $5k down and all I asked was an owner financing balloon of 7 years at a 3% interest rate amortized over 30 years. The higher bid price is what made the seller consider owner financing over a traditional sale. With interest rates continuing to rise around the 6% and above range, the real prize of this deal was being able to

How did you finance this deal?

Owner Financing

How did you add value to the deal?

After noticing it was undervalued, I offered a little bit more in exchange for the financing terms I desired. Still making sure I was getting a deal on the purchase price ;) The home is located near the local college and shopping centers and will have no issue renting and continuing to bring in cashflow. 

What was the outcome?

Got an already updated rental with little money down and a lower than market interest rate

Lessons learned? Challenges?

- Negotiate your terms
- When seeking owner financing, owner is more willing if the home is paid off and isn't residing in it
- Find title companies willing to draft up a mortgage note for owner financing now, instead of searching while negotiating a deal

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $121,000
Cash invested: $5,000

Bought my first turnkey rental property using the owner financing method. The seller had already paid off the home and was looking to sell for $110000. The home was recently renovated and updated. After running comps in the area, I found that it was very undervalued. The comps ran about 125-130k. Keeping that in mind, I offered $121k with $5k down and all I asked was an owner financing balloon of 7 years at a 3% interest rate amortized over 30 years. The higher bid price is what made the seller consider owner financing over a traditional sale. With interest rates continuing to rise around the 6% and above range, the real prize of this deal was being able to negotiate that 3%.

What made you interested in investing in this type of deal?

Reading 0-75 Units in Year by The Kwak Brothers, and understanding what they call the FORCE method of investing.

How did you find this deal and how did you negotiate it?

Found on Facebook Marketplace

How did you finance this deal?

Owner Financing

How did you add value to the deal?

After noticing it was undervalued, I offered a little bit more in exchange for the financing terms I desired. Still making sure I was getting a deal on the purchase price ;)

What was the outcome?

Got an already updated rental with little money down and a lower than market interest rate

Lessons learned? Challenges?

- Negotiate your terms
- When seeking owner financing, owner is more willing if the home is paid off and isn't residing in it
- Find title companies willing to draft up a mortgage note for owner financing now, instead of searching while negotiating a deal

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $121,000
Cash invested: $5,000

Bought my first turnkey rental property using the owner financing method. The seller had already paid off the home. The home was recently renovated and ready to move in or rent.

What made you interested in investing in this type of deal?

Reading 0-75 Units in Year by The Kwak Brothers, and understanding what they call the FORCE method of investing.

How did you find this deal and how did you negotiate it?

Found on Facebook Marketplace. The comps ran about 125-130k. Keeping that in mind, I offered $121k with $5k down and all I asked was an owner financing balloon of 7 years at a 3% interest rate amortized over 30 years. The higher bid price is what made the seller consider owner financing over a traditional sale. With interest rates continuing to rise around the 6% and above range, the real prize of this deal was being able to negotiate that 3%.

How did you finance this deal?

Owner Financing

How did you add value to the deal?

After noticing it was undervalued, I offered a little bit more in exchange for the financing terms I desired. Still making sure I was getting a deal on the purchase price ;)

What was the outcome?

Got an already updated rental with little money down and a lower than market interest rate

Lessons learned? Challenges?

- Negotiate your terms
- When seeking owner financing, owner is more willing if the home is paid off and isn't residing in it
- Find title companies willing to draft up a mortgage note for owner financing now, instead of searching while negotiating a deal