All Forum Posts by: Jason Papp

@Nico Savoia very nice, that experience definitely puts you well ahead of 90% on investors at your age.

@Nico Savoia Have you considered getting involved in the property management of your family’s units? Great lessons to be learned there.

@Joe Homs Thanks Joe, I definitely had a prepayment penalty on my radar in such a situation with the seller.  The lender restriction is something I would need to look into.

In need of 203k experiences contractor in Pittsburgh area.

Have specific property identified. In need of rehab estimate for 203k loan and offer.

Project is a larger rehab of a 4 unit residential property. Current 2 unit with commercial space. Building is located in the city of Pittsburgh. Can get access to property easily via sellers agent.

Whether you are a contractor yourself or have any recommendations, please feel free to reach out.

Thanks

Jason

@Eric Johnson thanks for the input.

My reason for asking is the interest on a mortgage doesn’t factor into a purchase price in a mortgage. So therefore I was wondering if the interest in a sellers note would be included.

For example on a 400k loan you’d pay an additional 250k+ in interest, but only the 400k is included in the sales price.

@Kirk Zandier happy to help. There’s some good neighborhood groups too. Also open to a BP group.

Is something like this possible (simplified hypothetical example):

• Seller wants 500k
• Conventional loan for first 400k
• Seller carries a 2nd note of 25k at 19.5915% over 20 years = $100,009 in total payments

Would this then record a lower sales price of 425k and save a bit on property taxes too and still eventually get seller their 500k asking total? Since the amount actually paid was 425 (without any interest factored in)? Also gaining the seller the ability to lower tax rate over the number of years? Also save seller a bit on commissions and taxes at closing?

* for the sake of this question I am excluding higher tax rate on interest vs on principle for the seller (to keep question focused on recorded sales price)

Thanks in advance for any input or insight

I know the Pittsburgh REIA still has meetups, both online and in person. They had one last night in a park locally. ACRE is another large group locally and they are still having virtual meetups for sure during these times.

Jason

@Christopher Robinson i agree with @Jared Baker, as a starting point getting a contractor to walk the project with a scope of work to get a real rehab budget is key. A gutted building is tough to estimate unless you have a lot of experience. Then you'll have real info to approach hard money lenders with or a co-investor and split the deal. 50% of a deal is better than 0% of no deal

Is something like this possible (simplified hypothetical example):

• Seller wants 500k
• Conventional loan for first 400k
• Seller carries a 2nd note of 25k at 19.5915% over 20 years = $100,009 in total payments

Would this then record a lower sales price of 425k and save a bit on property taxes too and still eventually get seller their 500k asking total? Since the amount actually paid was 425 (without any interest factored in)? Also gaining the seller the ability to lower tax rate over the number of years? Also save seller a bit on commissions and taxes at closing?

* for the sake of this question I am excluding higher tax rate on interest vs on principle for the seller (to keep question focused on recorded sales price)

Thanks in advance for any input or insight