All Forum Posts by: Clayton Plank

@Shanelle Harris, then there is not set amount. It just depends on how good the deal is. The deal will tell you how much you can ask for. If you ask for too much then the investor won't be able to make any money or less money and the deal may not be appealing to them. 

@Lane Babin, Yes that's all it was for the 8-9 that I have done. The mortgage note is the same as any other and recorded the same. We documented our terms in the purchase agreement as that's where our closing agent wanted them. May want to get with your closing agent and see how they would like it documented or if they want something else attached with your purchase agreement. Owner Financing is a win win for both sides. They have no large lump sum to get taxed on and they earn interest and you don't have to jump through the banks hoops to purchase a property. 

@Lane Babin, I have found it best to let them purchase the materials. This is what they do on a day to day basis. I ran in to some problems when I purchased the materials a few times and i found it easier to let them handle. If you purchase too little material then they are calling you about getting more and it becomes a game of who is going to do what. There is a mark-up in everything you do in real estate, its just a part of the process. I just make sure the numbers work for me and then proceed. If they take care of the materials and bid for too little or order the wrong things that is on them and they will have to deal with it vs me having to run around and try to fix the problems.  Just my two cents. 

@Lane Babin, I have done several owner finance deals and my closing agent was able to set up the mortgage note for us. We then did electronic transfers from our business account to theirs for the payments which gives us a detailed history of the payments made. We just used a regular sales contract and listed the mortgage details in the additional notes section and our closing agent handled the rest. It was very simple for us. I have heard of people paying into third parties for the payment documentation, but I didn't see the need for it as my bank statements will show the payment history and we had the closing agent create an amortization calendar for us to follow as well. 

@Account Closed depends on the rehab work you are talking about. Here in Florida construction work is going year round. We really don't have any off season except for things like landscape and pools and then that is only a few months if any. 

@Daniel Dietz every owner has their own motivations. I present it in a way that would help them. I explain owner financing helps me and them. I don't have to deal with banks, they aren't taxed on a large sum of money and they received a payment every month like the rent but they don't have to do any of the work or have any of the headaches. Some owners want more down to feel better about the deal or to go buy themselves a new toy to enjoy since they will know have more free time and then some don't care about the down payment as much as they do the sale price. I have had a few that were almost 0% interest as they only wanted to look at what the sale price was. 

@Shanelle Harris, there are a lot of things that make up what percentage you should get. Are you just finding the properties and wholesaling them to the investor where he is going to 100% fund the deal and do the work? Are you going to share the deal were you fund part and the investor funds part? There is a lot of missing information here. 

@David Lichtenstadter, what kind of investing are you looking at doing? I defiantly would not link my personal account to the entity as the normal reason for starting the entity is to separate you and your personal assets from the investments. 

@Jeremiah Fender, is the demand there for the ADU unit? (I.E. are there similar SFH's with them in the area) If you are in a neighborhood that consists of only single family units you may have a hard time finding a buyer that now wants to be a landlord. What would the main house rent for if you were to rent that out?

@Mike Monaghan are you looking to develop it with the mindset to lease to them?