All Forum Posts by: Jeremy Segermeister

Thanks Nicholas - the funding isn't really the main issue, as I could really pay cash if I wanted to. My thought is if the seller is looking for income, how should I structure it so it makes sense for both of us? And what happens if I wanted to sell the property down the line with the note he has?

I have a lead on a multi-use property that could be intriguing. It is FSBO, owner is old school and simply looking to get rid of the headaches associated with being a landlord and fund his retirement. It has 2 apartments, 2 storefronts and a storage area. He owns it outright and has significant gains on it. He said he is willing to get creative with the structure.

Asking Price is $1.5M, current gross income is $80k which he claims he could "easily" get it to $100k, but he likes sticking with his long term tenants. His claimed expenses are only ~$20k. I asked for a rent roll and actual financial details. This is overpriced at a best in place 4% cap rate. I haven't even begun to explore the condition of the property.

 On the phone he suggested doing half seller financing where he would hold the note for 15 years at ~7% interest rate. He said "if you sold the property the interest would be due, I'm using this for my retirement. We could lower the price for a higher interest rate, whatever you want to do".

With that said, I think he knows his ask is far too high. So what are some creative ways I could structure the deal that benefits us both? I technically don't need the seller financing and could qualify on my own, but it is a nice to have. A lower "purchase price" presumably would help both of us from a tax standpoint, but hurts me on depreciation?

How would you structure this (after due diligence on the property is done)?

Hi all,

We decided to move cross country and buy a new primary home in South Florida. We know the new construction community we want to buy in. The builder pays a 2% agent fee. We are planning to go sometime in September to look at the models and put down our deposit.

What would be an appropriate fee to offer an agent to essentially show up and "represent" us? I would want the rest of the fee credited back to us.

I secured my non-assumable jumbo loan at the bottom of the market at a 2.1% 30 year fixed rate. Our circumstances have changed and we may be selling our house in the near future. I am not going to rent the house out  

Are there any creative deal structures that would allow me to pass along this low rate to a future buyer and thus fetch me a higher sales price? Of course I need to be careful not to trigger the due on sale clause. 

Thanks everyone for the advice. 

Is it possible to get the best of both worlds? Can I take on an investor in my property (say 49%) to manage the rental and so I can get some cash out? We would share the benefit of the very low mortgage rate.

Hi everyone,

I spent 2.5 years building what we thought was our forever home in the Bay Area. We did things that would not make sense if I were building it as an investment property. Due to some life changes, we are contemplating a move cross country to Florida in order to be closer to family.

If we move, I am not sure if I want to rent the house or sell it. Hoping to get your advice here or perhaps provide some creative ideas. As I get closer to a decision I know I need to meet with some local agents to refine these numbers a bit.

Reasons to Sell: I have a significant amount of equity in the house that would allow me to pay for a new house in cash. Having no mortgage with a young family is very attractive mentally, even if it is not 100% the right financial decision. Rental income likely would not cover the mortgage + taxes in my area. I would then poor my future savings into investment properties. Also, I have an emotional attachment to the house that may add stress when seeing renters not take care of it the way I would.

Selling now would let me take advantage of the $500k in gains on my primary.

Reasons to rent: I have a ridiculously low 2.1% 30 year fixed mortgage with WF. I don't *need* the money to fund the downpayment for my new house.

I don't think my mortgage is assignable, but is there any way to bring on an "investor" into the house to get best of both worlds?

@Aaron K. Thanks. Their offer is slightly above market which is the only reason I’m entertaining it.

Hi,

I am selling my home and received an offer. Initially the buyer asked for a home sales contingency, which I flat out declined. Their counter proposal met me somewhere in the middle in terms of price (still about a $20k gap), and removed the contingency. However, they are asking that in the event that the sale of their home takes longer than expected, they want to be able to rent my house for up to 2 months. They are worried about longer escrow periods from Corona.

In concept, I think I am okay with this. However, I need to ensure I am protected so that they do not get cold feet and try to walk away after moving in the house. Also, any damage/inspections after X date, need to be on them. There will always be little things people find after actually living in the house. What other things should I consider, before accepting their offer?

My agent is also representing the buyer. There are obvious concerns about this, but I am going to ask that she close the price gap from her commission. 

Any advice?

@Saj S. Does it stay on the report forever, or do they get rid of it once you exit forbearance?