All Forum Posts by: Jason Mcdaniel

Awesome thank you Shenice!

Hello all!  I'm in serious need of advice and also a contract!

I'm currently in the process of looking at a multifamily property that is off the market and I would really love to buy it with seller financing.  My biggest issue so far is no being able to explain seller financing clearly enough to the seller because it is my first time in this situation.  My previous, first, and only other investment property so far was done with seller financing but the seller was advertising it as such and he had tons of experience with doing seller financing deals. 

So, I want to make an offer to this gentleman on his property for $300,000 with 10% down on a 30 year mortgage plan with a 5 year balloon payment.  

A:  In general I know what this means and I'm trying to explain it the best I can but he keeps getting confused about why he should finance it to me and what guarantees will he have if "something happens".  He's 84 and just doesn't want to deal with it any more but also in no rush to sell it.  I believe if I could explain it properly he would definitely go for it.  I already told him that with this method he will receive the most money possible for his property and why but he doesn't get it.  I really need a third party that he trusts to come in and simply explain to him that I'm right and it's win-win.   

Should I maybe offer a 3 year balloon payment?  I'm very confident I could make it happen with a cash out refinance.  I'd actually try to do a cash out refinance within 2 years.

B:  I have no idea where to get a contract so if anyone could please point me in the right direction I'd really appreciate it.  I think maybe the best route is to just give him a contract (if I can find/create one) with the offer and details and tell him to read over it and maybe take it to a lawyer or title company to read over it with him and then get back with me if he's interested or has any questions??

Any advice would be so greatly appreciated as I'm super excited about this property and I really want to make it happen! :)

I know this is an old thread but I just found it searching for an answer to the same question, so then I re-listened to podcast 77 with Michael Quarles.  Unfortunately all of that good information about marketing, phone services, and linking leads together wasn't in there.... It was an awesome podcast and well worth a second listen though!

The marketing topic podcast with Michael Quarles was his second one which was podcast 81.  That's the one you wanna listen to if you're looking for info about phone services, linking leads, etc...

Slow reply I do realize but hopefully somewhere down the road it will help somebody out! :)

@Christopher Davis That's great good luck man!

@Damian S. Thanks for that Damian.  I've definitely studied the heck out and have people to run numbers by but to be honest I think that my biggest weakness will be coming across like I don't know anything about the multifamily game because I have no experience with it.  I'm confident that once I get into it I have the ability and drive to crush it.  I just really want to be sure that my next deal is a great one.  I'll definitely keep posting on here and updating my progress along with asking a million more questions I'm sure.

Wow thanks for all of the awesome feedback guys!  I continue to be blown away by the willingness of members on BP to help out rookies! :D

That's very inspiring to think that it might be possible to get a bank loan on a commercial property.  I was just thinking that since I had no proof of income it would be difficult but I suppose that they're just mostly concerned about it being a legit deal when it comes to commercial properties.  I also meant to list with my PRO's that I do have pretty good credit too (about a 730) so hopefully that'll help.  

@Mike Lambert Yes I do live in Knoxville and have my whole life.  I really love it here actually... except for the fact that it's the worst city in the USA to live if you have seasonal allergies.  The pollen combined with my asthma makes for a few months each year being sick, sometimes bad sick, which is avoidable by relocating.  If it was strictly based on numbers and real estate opportunity I'd stay in Knoxville.  

Are you saying you think it could be possible to get a bank loan?  I was assuming there was no chance of that happening but please correct me if I'm wrong

That's a great suggestion about non real estate events Bill I never would have thought of that, thanks!  And hustle harder I will!

Hello everyone!

I'm currently in a strange position and am needing to be creative to achieve my next real estate goal.  I'm about to start looking for a multifamily (5-20 units) in the Pensacola, Florida area but I have some constraints and therefore need some specific advice please.  Here are the pro's and cons of my situation:

Cons

1.  I've just finished graduate school and have not had a W-2 for several years

2.  My only provable real estate experience is a single family buy and hold that I bought 8 months ago.  It was a fair deal but not great, just a way to get started.  

3.  I am new to the Pensacola area and my network there is basically nonexistent

Pro's

1.  I will have approximately $50,000 saved to invest in this deal

2.  I bought my first deal with owner financing so I have some experience in that regard

3.  I will have the willingness and time to make this deal my baby.  I plan to spend night and day working on this property until it is ready for a cash out refinance.

So I'm am planning to contact many multifamily agents in the area and telling them exactly what I'm looking for but I'm not sure how likely it is that an agent will bring a noobie investor an owner financing commercial deal.  I'm also planning to do some yellow letters but was thinking about using a more professional, detailed, and honest letter than the standard suggested format.  Would it be a bad idea to send out a bunch of mailers to multifamily owners in the area that own their properties free and clear briefly explaining to them my situation?  Any suggestions on how my mailers should look to find a potential seller?  Any suggestions on finding a deal that will meet my criteria besides going to the local reia's and emailing agents an introductory letter describing what I'm looking for?

I've already decided for sure that my next property will be a value add commercial multifamily so please don't try to talk me out of that.  And no, I don't plan to use my masters degree to get a 9-5.  I plan to continue flipping cars for cash flow and looking for this next deal until I find it.

Any and all advice will be greatly appreciated! :)

Jason

Ok awesome! Thanks again for all of the great info!  I will definitely be looking into some of the pay services after I purchase my first multifamily and have more tenants to manage.  For now I've decided to just do billpay at my bank (Regions) which I can automate to send a monthly check to the seller who is financing me.  I was just trying to get it straight into his account to help him out, but yeah the bottom line is that's on him.  And for the tenants I'm just going to have them deposit cash into my account each month.  I'm also going to look into other banks like Bank of America to see about simpler money transfer options.  I still think it's crazy that a huge bank like Regions can't just do a wire transfer to another bank account and instead can only send out a check to someone's address.  But oh well, accept the things I cannot change and change the things I can, right?

With much gratitude,

Jason

Wow! Thank you guys for all of the great info! 

I think an important piece of information that I left out was that my mortgage is with owner financing.  So the man that I bought the house from would like for me to make my monthly payment directly into his bank account the same way that I would like to have my tenants pay me.  With bill pay, at my bank at least, they can just send out a check once a month but there is no way to just send the money to another bank account.  That's where my biggest headache is coming in.  And I'd like to be able to set it up to go to his account without him having to do anything such as set up an account with a third party company.  Thanks again for everything!