All Forum Posts by: Jim Sestito

Glad your not Uncle Dion @Dion DePaoli  --->  Your post makes sense - I was hoping to see some responses like that when I posted.

Grandma will be renting next.  As mentioned Grandma doesn't need cash (which I still on planning putting a nice chunk down) or the monthly income (which she will get) - she needs a smaller place in which needs no maintenance like a 1BR Lux Apartment.

My goal is not to confuse or stress her - thus why I brought this to BP b4 her. 

What I imagined can be stressful is her hiring an agent - having the agent tell her all the repairs she NEEDS to do to get full market value - going thru 100 showings / offers / then closing ect.  Thought it may be better just to deal with me her eldest and favorite grandchild.  

On my end I saw potential to Aquire the house below market value - with low $ down and a fair interest rate - again without the hastels of financing thru and bank and having another mortgage on the balance sheet.  Many to the points @Lynn McGeein Posted.

Not looking to break the family up just trying to solve two needs; help grandma downsize and add more units to my portfolio.

@John Prunier Hey I'm asking the questions here! - No kidding - those are great points.  This is my grandmother - she is financially secure - still works bc she loves her work - but does have three children who I am sure will be interested in any activity of the home.

My key purpose of posting this was to confirm the benefits of seller financing to the buyer and to the seller.

I could get a conventional loan but as @Ben Nelson stated one less loan on the balance sheet - not dealing with a bank - being able to create the terms myself. Benefits for grandma is she is getting cash (I would certainly give some down payment so grandma can have somewhat of an instant payday) a check for 1,400 - 1,600 a month that is 100% passive.

@Steve Vaughan She doesn't need cash.  This is truly a case of the house is too big - she doesn't want to be a landlord anymore (although she rented the apartment for 25 years and never had more than 2 months of vacancy and never had one eviction) Doesn't want to deal with landscapers and plow guys to maintenance the house.

I guess the question remains how do I bring this up to her children - how will it work if the note lives longer than grandma.  I am sure it could work out that the payments would go to an estate for the kids they could divide.  

Thanks for the feedback thus far and would love to hear other stories if anyone else has done a similar deal.  

@Jay Hinrichs Have you purchased small multi family homes with seller financing?

@Account Closed 370K ARV -- needs 20K to get there (roughly)

Grandma will be renting for the rest of her days after the sale - small apartment where she doesn't have to worry about lawn mowing or snow removal here in Massachusetts .

@Aaron Mazzrillo Man do you have a way with words ---- the underlying message being to make clear the killer extra monthly collections from hitting her eldest grandson with interest charges. 

Couple of quick tools - 

- Craigslist - Look for rentals in the neighborhood you are thinking of buying in.  Is the whole street 'For Rent'?  Bad sign.

- Job growth - population growth - median ages --- all information that can be found with google searches.

- Put feet there - Walk/ Drive around - do you feel comfortable?  Would you live here?

Hello BP,

Dear Grandma is looking to downsize.  Her house completely paid for and she has one note on it that she used to purchase a car with a about $18K remaining.

The house is a two family.  The  main unit is a 3 bed 2 bath (she lives in this one) and the apartment off the side is a 1 bed 1 bath (Just became vacant Jan 1).  The house has a nice yard and a separate garage spot for each unit.  Both units need updating to get full market rent for the area but are currently very livable.  

Roughly $370,000 ARV --- Needs about $20K to get there.

Grandma is about 80 years old and financially secure.  

I somewhat understand seller financing from the podcasts and various BP searchers.  But I would like to hear the best quick Grandma elevator pitches for this situation.

Why would this be beneficial for her?  Why is this beneficial for me?

If any needs more info please let me know.  Hoping this will be a fun thread!

Best  -- Jim 

@Jabari P. Calling all negotiators / salesmen..... You need to find their biggest pain point.  What is the property costing them to maintain every year/ month.  Pick that scab until you see blood.  Your 100K offer is making him feel cheated... how can you make 100K feel like a win for the owner.... Good Luck

@Chelsie Librun Personally I would go with the neighborhoods (or near) that you have lived in.  You will know those places the best street by street and know exactly what kind of tenant to expect.

Good Luck.

@Ann Bellamy @Max T.  @Dilpreet Singh  @Andy Hudgins

Am told much of labor costs is removing/ replacing asbestos siding... 

thanks for the insight guys... here are the details of the quote if that helps.. Going to get quotes from a few craigslisters, home depot, and then I have the mass save quote.

again old, big, Massachusetts two family.  Quote is for all ways each unit and attic floor above unit 2

Hey BP,

As all of us in New England, Boston, Massuchusetts last winter was really cold and snowy.

My tenants in my;

-NON insulated

- built in 1912 -

-1300sqft per unit w high ceilings -2 family

were very cold and burned thru some serious OIL.

I worked with mass save this fall and have a quote for about $9500 to do the entire house. Ouch.

I know I can finance this but it is still a large sum of money. Can I justify this with some sort of ROI? I assume this will keep my tenants warmer and not poor thus decreasing turn over.

Anyone else run into this? Stories, tips, conversation of all kind welcome.

Thanks,

Jim