All Forum Posts by: Jeffrey Johnson

We are in the process of doing a refi now to just lower the payments. The appraisal as not come back yet. There is no way that I could get comps as nothing like our house has sold recently. The closest things had to less bedrooms and about 1000sq feet less total as well. So I have no idea what that equals.

I do not have the income to support 2 mortgages. So I am guessing that if I were to sell with any kind of owner financing I would need to buy the same way.

Thanks for he reply.

I have a question that I hope will have a somewhat easy answer.

the wife and I would like to move out of the area we are in now. Our home price has dropped probably 50k. We are not underwater but no where near 20% now. Homes in this area have not been selling at all. I think 1 has sold inthe last year. I am looking for options to be able to sell. I want to get the most out of the home. I knowm no matter what I do now I will lose a decent amount of the investment I put in. I just want to be able to pull something out. We do want to be able to buy another home as soon as we relocate as well

I have been looking at home swapping. But that seems hard to do and would require lots of luck. I was also thinking of renting it and then buying. but it looks like you need 30% equity now to do that. Is that true. If I do a contract for deed or a lease option would I be free to purchase something else as a primary home right after with normal financing?


Any help would be great. I will answer any question I can to help.

Thanks

I appreciate all the advice. Thank You

Excellent Advice, thank you.

I am aware of the 70% rule. I am not sure why the others backed out. I would guess that they are not investors really and are probably just scared with the way the market is at the moment and did not want to risk the money.

As I told him I would need to see all the numbers on the house to make a decision on if I would give money or not. It sounds like it would be better to just for a partnership per deal in order to make my money more secure.

As for the 50/50 split, I would almost insist on that, as I am putting more risk into the deal. And I would have to have a say in the hiring process of contractors.

I were to do a loan like that with points and interest how would I have to structure that in order to legally go after the money if there was a default?

I think the way he is doing it is that he has to have 20% down and then we would be able to get the financing for the rehab as well. I still have yet to talk in detail, but that’s kind of how its sounds. So he would have to by buying at a really good discount in order to do that. I will get more info on that when we get together.

I am looking for a little advice on what I can do to both profit and protect myself in a couple different situations. I have a co-worker who is finding properties to rehab. He has found a number of them, but has been having issues with investors backing out at the last minute. I am not sure why they are backing out and will need to find out. We are looking at 2 ways to work together.

The first way would be me providing the capital to meet the 20% down. I want to know in this situation what I should do to help protect my investment and to make a profit. But my first priority is to make sure I get my investment back to at least a break even point. What are some things I should do to structure a deal like this?

Second is forming a partnership. With me putting the money down to purchase the property and therefore taking the bigger risk, how would you structure this partnership?

Any advice would be very helpful.

Thanks

Probably in his book. Click on the link in any of his posts

ok, I see. Makes more sence now. So ifa person had 10 rentals, would it make sence to use some of the profit from all 10 rentals to pay down one house at a time? Once 1 is totally paid off I can see this moving along quite a bi faster depending on the mortgage price. Is it common to do this or just pay down each from its own rental income.

So I am confused. Having 10 paid off rental is NOT better than having 10 rentals with payments?

Ok, here is the deal. I have a rental that is a long distance rental and I am selling. The people renting are the buyers.

The issue I have is that they are only approved for a a certian $ amount. What I need to get is about 12000 more. I have a line of credit on the house at about 15,000. I presented them a rent to own offer for a year with a bubble payment after that, and they counterd. Money is not much different but they want to do a contract for dead. In doing that I would have to pay off the line and there is no way that is possible. Their down payment would only be 5K.

What are my options on making this deal work. If you need more info please let me know what you need. But I need a way to sell it with monthly payments for a year. Again the money is pretty much agreed to so all I am looking for is how to make the deal work.

Thanks

Ok, I am very new to this so if I am way off I will not feel bad if someone slaps me into place.

I can see the argument that Scott Gives and the one that MikeOH gives. Both are very well put and to me it seems that they are both right.

Let me explain what I mean.

If you have one rental and only one rental that is a new 1 year old townhome your expenses may very well be quite a bit under 50%. I actually have just one rental and I have spent 120 bucks over the last 6 months.

Now once a person gets going in this business and starts getting more properties I think the number will head towards 50% more. Some place will need more than 50 and others will need less.

I think I am correct in saying that with all the rents a person brings in that no one separates the 50% from each check and puts it into an account for that one home so that it can be used for only that home. That would not make sense.

I would thank that if you actually did the 50% rule and put that money into one account you would be able to cover any expense that any property would need and some will need more than others.

So in a way every property is going to be different, but when dealing with a large number of them it may be better if not easier to go with a set percentage.

Anyway I am just a newb and may be way off base.