All Forum Posts by: Jeff Garzik

Is anybody else seeing this problem?

Creating a Rental Property report succeeds.  Choosing the final "Download PDF" causes an error 500.

This was new to me:  Some businesses scan Craigslist for "seller financing" keywords.  These businesses are interested in reselling the notes from sellers in seller financing deals.  One of their pitches is to encourage sellers to write conforming notes, and season them, to get the highest value on the resale market.

Their advice, which seemed like great advice to pass on:

1. Have the buyer fill out a Fannie Mae form 1003.
2. Check buyer's credit with the buyer's permission.
3. Require minimum 620 credit score.
4. Require buyer to undergo credit repair. Yes, you're the lender and you can do this. The higher the credit score, the higher the resale value of the mortgage note.
5. Hire a servicing company to collect payments and do all IRS paperwork.  This costs $30-40/month.
6. Season (hold) note for 3, 6, 12 months. A seasoned note is worth more than a green note.

All this is designed to make your note "look like all the other notes", making it easier to analyze and resell, giving the note a higher value.

Offering seller financing on a property, and then selling the note, is another strategy for the toolbox.

No need to guess if they are C/D/F properties. Google Street View and Trulia crime maps will tell you.

Agree with your gut feeling:  It seems too good to be true.

Yellow flags:

- it's a [former] foreclosure; legal status and building physical status are in question.

- repair estimate $15K, yet comments "needing only maintenance and cosmetic work"

Due diligence - a home inspector or experienced contractor taking a look - should answer remaining questions.

Agree with @Steve Vaughan - If the debt is low-APR, your cash can be better deployed to investments with greater return than 4-5%.

The general advice ladder is:

• Build emergency fund
• Pay off high interest debt rapidly
• Deploy cash into savings and long-term growth investments with good ROI

Continue to service those low interest debts for years, with excess cash deployed elsewhere.

In re LLCs and mortgages,

1) There are a handful of lenders out there willing to lend to LLCs, but have you personally cosign.

In re avoiding lawyers,

2) The cost and risk and consequences of DIY-lawyering should be factored in...   It's not like you pay a lawyer each time you sign a lease.  There is a standard lease drafted, and then that template is photocopied for each tenant.

Welcome to BP :)   Always great to see another Atlantan on here.

Definitely pay attention to the crime maps on Trulia when sifting through properties such as Washington Park or West End...   Great price and opportunity in my opinion.

Having a line of credit untapped and available is a viable strategy also.

If you can get a conventional loan, go for it.  Optimize for the best deal on the finance side for sure.

The trick is that convention loans will normally not be approved if the property cannot be occupied & insured. That's why most cannot get a conventional loan as a first step.

Ditto above - always seeking great rehab-for-rental contractors in the Atlanta area.

LMK if you're available and have real experience.

Thanks all, great community, great area.  :)