All Forum Posts by: James Maher

You can expect an owner financed deal to be at least 8% so I used that for some calculations.  Without offering a good bit less it's going to be hard to cash flow $300.  Also, most sellers are going to want to amortize over a 20 year period or so, leaving you with very little meat on the bone if you can't get the price down.

Assuming $5000 down and $60000 purchase price, your payment alone (on a 30 year note) would be a little over $400/month. Factor in taxes and insurance and you're a $550/month without anything put away for repairs and with no property management... not to mention vacancy and CapEx. I almost went the seller financed route a couple of weeks ago but it didn't work out. I'm going to keep searching, but the sellers around here wanted a 20 year amortization schedule, 8%, and 2, 3, or 8 year balloon.

I'm sure @Brian Eastman will be by shortly.

If you don't need the money now, and can wait until you are 59 1/2, I would recommend setting up a Self Directed Roth IRA so that you can do real estate transactions in your Roth. I am currently in the setup process and already have a property that I plan to buy in a few weeks as soon as my transition is complete.

I will NEVER use Paypal for anything again.  I know this is off-topic, but they held $10,000 of mine for 90 days.  I was selling some stuff I had lying around the house... they didn't like it and took away my account because I wouldn't provide invoices for where I got the stuff.  After having over 220 eBay positive feedbacks and 0 negatives, they still did that.

I use any chance I can get to tell people not to use Paypal!

Currently, I'm using a property manager for one property.  They just direct deposit each month into my checking account.  I am buying another property and will most likely not be using a property manager for it.  What ways you collect rent electronically?  I haven't talked to the current tenant yet to see how they pay right now, maybe that's how I should start?

@John Suralik I think that can be said for any strategy in any market.  Look at the  numbers.  If the numbers work, do it... if not, don't do it.

I'm currently renting the first house I bought. Even though I did an FHA and have a pretty hefty payment due to the low down payment and the PMI that will still be there for about 10 more months... it's cash flowing about $200/month after all expenses.

Had I put 20% down AND not had to pay the $120/month PMI, I would be doing a lot better.

Sorry, but I totally disagree.

Just taking a quick look at the rent vs. purchase price would make it a deal breaker for me.  I shoot for well over 1%/month in rent vs. purchase price.  It looks like you'll be closer to about 0.6%.

One of my goals for 2016 is to figure out how to do a flip fully funded by someone else.  I have read and reviewed agreements to protect both me and the person who provides the funds.  However, should there also be a preliminary agreement to protect me from having the person who is funding the deal snipe the property out from under me?

I want to be able to fully disclose the property to the investor so that they can make the decision on whether or not to invest in the deal prior to me making an offer on the property.  How is this generally handled?  

Sean,

The formulas for loan amortization are pretty simple and most of the time you can just use factor table that is based off of easy to calculate values (example $100,000).  You then just multiply that time the factor that would get you to your actual loan amount.  Anyways, I think it's helpful to understand how the math works, so run a few calculations yourself, you'll find it's really easy I believe.  It will help you in the long run.