All Forum Posts by: Jared Schott

Quote from @Ty Coutts:

Hello Jared Schott, regarding your situation, here are some considerations and options for managing the $280,000 gap: 

Second Mortgage: You can seek a second mortgage or home equity loan to cover the $280,000. This will be subordinate to the existing FHA loan, but you'll need to qualify based on your credit score, income, and debt-to-income ratio.

Home Equity Line of Credit (HELOC): A HELOC could also be an option, offering flexibility in how you draw and repay funds, though it might come with variable interest rates.

Balloon Payment Loan: This type of loan can offer lower initial payments with a large lump sum due at the end of the term. Given your expected income increase, you could refinance or pay off the balloon payment when it comes due. However, this carries significant risk if your financial situation doesn’t improve as anticipated.

I hope this helps, and this is just the tip of the iceberg when it comes to mortgage loans. Feel free to message me for more information if needed, I am happy to help!

 I would absolutely love to talk. I am very green when it comes to creative finance/options. I'll pm you on here right now. thank you!!

Hi folks I previously posted about a 5 bed 4.5 bath house for sale at 590,000 and has been up for 60 days. This house has an FHA loan that I can take over and all in it'll be 2k/month. however, the amount left on loan is 310,000 at a 2.75% rate. so, if I did 590,000-310,000 I would have to come up with 280,000. I could probably get it for cheaper but just for now I want to see worst case scenario.

This means I would take over the loan and pay 2k/month on top of needing to come up with 280k. I am currently not making much income however next year I will be making 70,000 and it will grow from there. I do not have that much cash sadly, but I was curious what your guy's thoughts are on financing that amount. could I get a decent loan for it? is balloon payment a valid idea due to my increase in income in the coming years?  I am open to any and all advice. Thank you! 

Also, it is a new build, so maintenance is going to be minimal 

Rent Numbers:

I can rent the house out for 2800/month conservatively (maybe 3k)

Loan Details: 

mortgage remaining: 310,000

FHA matures 10/1/2050

rate:2.75%

asking price:590,000

Quote from @Jackson Harris:

@Jared Schott

Seller financing will definitely be a stretch if the home is listed currently. Most homes for sale on the MLS are not looking to go with seller financing, in my experience usually you get those types of offers from the seller looking for buyers that want seller financing which is few and far between.

I think your best bet here could be to offer sub2 but even that is a far stretch. I'd say this deal overall doesn't seem like the best deal given the numbers you gave as well.

My business partner and I do investment deals all the time in Phoenix, we should grab coffee sometime and talk through a strategy based on your goals. I'll message you.

Apologies for the ignorance, but when you say "sub2" what does that mean?

Quote from @Account Closed:

Quote from @Jared Schott:

Hi guys, I just made my account but have been listening to the podcast a lot recently but have been hopeless in finding a deal in phoenix. Well, I may have just found a possible deal but am worried it is not a good deal. I guess I need someone to just listen and tell me I am crazy or what my options are. I apologize if that is too much or not allowed. I will give you the numbers then tell you mu strategy idea. 

house purchased for 415,000 in august of 2020 at a sub 4% rate but I treat it as 4% because I am not 100% sure what the rate is (I am getting into contact with realtor soon don't worry)

The house could rent for 2,500 per month at minimum and I think I could get 2600-2900 but not 100% sure.

It is now on the market for 600, 000 but I think I could get it to 575 since it has been up for a couple months.

well 575,000 at a 7% APR is way higher than the rent so I was thinking I could do a seller financed route. This is where the problem lies.

I have been working out some numbers but honestly the podcast has never told me exact numbers and how seller financing really works. Is there a resource you could point me to or maybe I could pay someone to hold my hand through this process? When I was working out numbers for seller financing, I got to the point of giving the owner $315,000 lump sum then taking over the loan at 2000/month however when you do ROI that means you'll get $800/month cashflow at best which is 800*12months for a total of 9600/year CF. if you do 9600/315,000 that means you get a ROI of 3%. which is not nearly as good as stock market. also 315,000 lump sum I do not have :( I need help. This account is brand new so I will be getting a profile picture soon as recommended by the podcast. Thank you guys, if there is any confusion let me know as I am trying my best to paint the full picture so the best advice can be had. THANK YOU!!!

The way we counter those numbers to make it a great deal in Phoenix is to buy off market and take over the existing 3% financing. If you skip using a new loan, you avoid the costs of origination and high interest rates, It works well for our clients in Phoenix and in CA.

Sorry if i did not make it clear, I meant i would take over the loan that is sub 4%(might be 3% but haven't gotten confirmation). but with that 315,000 lump sum it kills ROI. Do you agree that this is nto a worth while deal? other comments seem to think its not a deal

Hi guys, I just made my account but have been listening to the podcast a lot recently but have been hopeless in finding a deal in phoenix. Well, I may have just found a possible deal but am worried it is not a good deal. I guess I need someone to just listen and tell me I am crazy or what my options are. I apologize if that is too much or not allowed. I will give you the numbers then tell you mu strategy idea. 

house purchased for 415,000 in august of 2020 at a sub 4% rate but I treat it as 4% because I am not 100% sure what the rate is (I am getting into contact with realtor soon don't worry)

The house could rent for 2,500 per month at minimum and I think I could get 2600-2900 but not 100% sure.

It is now on the market for 600, 000 but I think I could get it to 575 since it has been up for a couple months.

well 575,000 at a 7% APR is way higher than the rent so I was thinking I could do a seller financed route. This is where the problem lies.

I have been working out some numbers but honestly the podcast has never told me exact numbers and how seller financing really works. Is there a resource you could point me to or maybe I could pay someone to hold my hand through this process? When I was working out numbers for seller financing, I got to the point of giving the owner $315,000 lump sum then taking over the loan at 2000/month however when you do ROI that means you'll get $800/month cashflow at best which is 800*12months for a total of 9600/year CF. if you do 9600/315,000 that means you get a ROI of 3%. which is not nearly as good as stock market. also 315,000 lump sum I do not have :( I need help. This account is brand new so I will be getting a profile picture soon as recommended by the podcast. Thank you guys, if there is any confusion let me know as I am trying my best to paint the full picture so the best advice can be had. THANK YOU!!!