All Forum Posts by: Jeffrey Johnson

Ok, I will take that advice and continue learning. My only experience in real-estate is buying 2 houses to live and selling one. But it was all through a realtor. I did learn a bit, but not enough to be anywhere near what I would need to know.

I was looking at housing in the area, but all the cheap stuff is of course in undesirable areas and probably not worth the risk. But I will keep looking.

No to go back to the original point of the thread. I do need to know how to make an offer. Take this for example from what All Cash wrote:

$170K sales price
$5K down
$165K @ 8%, 30 year amortization, 10 year balloon.
P&I about $1210/month.

I just need an example of how I would write this up. I just talked to the people who are renting now and they want to know about doing a contract for deed. How is that different than the above? They were offering 150K and would have a bubble of 3 years. They wanted 4% (would not do that) They seem the think that they would pay us about 30k over the 3 years, which is about right, but they think that would all come off the loan. I know that is not right at all. They are really not understanding how the interest works, or if it’s different with a contract for deed, then I am not understanding. Can anyone clear this up?

I would want to set it up as a bank would so that I would profit from the interest as much as possible. That is the only way I would take less than what I really want for the house.

Also a Tax question. If for example I sold it for 150K and it was worth 180K I am guessing that I could take a 30k lose on my takes. Correct? Also would I have to pay takes on the interest that I make from the house?

Ok, enough for now. Thanks again for the help.

Thanks everyone for the advice. IT has helped a great deal. Now my next question is. If I can make this happen the way I want and I have the large sum of cash upfront. What is the best way to use it in real estate. I have wanted to get into it for a while, but do to time, funds and a lack of knowledge I have never really felt comfortable doing it. I now have some time and if the money comes that would help alot as well. Then all thats left is knowledge. Thats where everyone here comes in.

Thanks again.

Any advice is welcome. And I thank you for yours. I know that I am not getting what I could for rent. But I needed to do something fast and they were there ready to move in that day. It was just a temp fix until a buyer was found.

The house is Appraised at 182K, not that that really matters I am sure. I guess its worth what someone will pay. I think how I got into the problem that I am in is that the realtor said he could get 219 for it. I was like, ya, if you can get that do it. then it go no attention and we kept dropping the price down to 179 and I just had to get rid of him and get some kind of cash out of it to pay the taxes and insurance.

I really like that plan and if I was a professional investor I would jump on that, but at this time I am also in need of getting debt paid off so that I can do things like this. Thats why I would like the lump sum right away. 170k in cash will do me alot more good than 1200 to 1400 a month at this time. But maybe I am not thinking about this the right way. I will keep this in mind and see what I can do. I have no idea now what they plan on having for a down payment or what they can afford a month.

The house is located in a small Minnesota town and is around 4000sq foot with basement and a double corner lot. but the small town and the lack of cell coverage has been a major drawback in getting people into the house.

I guess I will look over my expenses now and see if I can make something like this work. cause I really do like it.

I am really new to real estate and needa little advice on how to do some creative financing with one property that I own.

The home that I have been trying to sell for around 170k. After being on the market for almost a year I decided to rent it out for a while to let the market get a little better in my area. The home is paid for so I don't have any mortgage to worry about. The renters now are paying 750 a month in rent and would like to by the house. They are approved for only 150K from the bank. I want to try and make a deal that will allow me to get as much as possible down, 100k to 120K would be a good range. I also want to make sure that they are able to make ends meet as well.

Is is possible for them to get a conventional loan for say 110 or 120 and have the rest covered in a contract for dead or some other type of agreement? And if so, how am I protected so that if they were to default on the contract I would be able to take action?

What other types off agreements could I do to make this work?

Thanks for any help you can provide.