All Forum Posts by: Jon Joro

i totally get what you're trying to do and love it. it sounds like you'll be wanting to sell not necessarily with seller financing, but with a sub-to/hybrid model, right? the seller will take over payments on your 30y loan & make an additional monthly payment to you towards your equity? if so, you definitely would not want to loop the lender in on this plan. sub-to deals are not done with the lender's involvement; they would call the note due.

Yep exactly. Rather than sub-to it would be a wrap around mortgage :) Thanks for your comment!

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Quote from @Yue Lehman:

Sounds like your concern is your lender AKA seller will find out about your future profit that you're worried about. You can put it the seller financing document to pay them out in x amount of years (whenever you expect to sell), while maintaining an agreed upon mortgage amount. If it ends up not selling, have a plan B to refinance with a regular lender to pay out previous lender / seller.

Once they sell it to you, it's your property and they shouldn't (not that they wont) be concerned with what you do with it as long as you make the agreed upon payment on time. Just my 2 cents.

Hi thanks for the reply. Maybe I did not write my question clearly enough. Let's say you buy a property on a 30-year note and your intention is to sell that property on a 30-year note AKA seller financing. Does this need to be disclosed to your lender? It's not a traditional flip it's a seller financed flip.

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Hi everyone, I have a question about a seller financing deal.

Imagine you're purchasing a property below value using a 30-year loan, with the plan to later sell it at the full price using seller financing. In this situation, do you need to tell the lender upfront that you'll be selling it this way? It's not a regular flip, more like a seller financed flip.

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Quote from @Matt Devincenzo:

Sure you can do it, but it's not likely to actually work. In your scenario your buyer is bringing 30% DP, and you owe the seller $70K, so you need to pay $40K to the seller in addition to the DP you collected. Now you have a $70K note for the sale, but you had to physically spend $40K cash to get into that deal...

Hey thanks for your comment.

in that scenario the end buyer comes in with 70% either with cash or mortgage and I would hold the 30% as wholesaler

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Quote from @Nathan Harden:

Yes, this is a thing. Assigning a contract is called a wholesale.

I know assigning and collect a fee but in the example above they sold and held a note for the remainder. Do you see any problem with that?

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I have seen a scenario where a buyer put a property under contract for 70K but decided during Due Diligence wasn't going to buy it so ends up assigning the property, here's how it looks -

Property under contract for 70,000 and the buyer listed it for 100,000 with 30% owner financing. Found a buyer and payed the seller the full amount and holding a private mortgage for the rest.

Does anyone see any problems doing this?

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Hey all,

my REI strategy involves buying with owner financing and selling with owner financing, currently i am sourcing deals in multiple states.

I wanted to ask, how should i go about protecting the deal when closing with a buyer in a different state when the seller has not moved out yet. (in the case that buyers goes direct to seller)

Since i will be listing the house, they would go to see it and i am not local to that area.

would Affidavit of Memorandum protect me?

I have a few deals like this right now and would appreciate your advice.

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Quote from @Martin Grizzanti:

@Muditha Halliyadde I invest full time in Rochester--feel free to reach out with questions.

@Martin Grizzanti

hey Martin can i ask your opinion on the Upper Falls area? zip code 14605. i am in contract with a 6 unit there, it is currently occupied but a management company i briefly spoke to denied to manage the property due to the area. im on the fence wether i should go with it.

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Upstate New York, New York

Quote from @Tim Corey:

Quote from @Tracy M.:

Quote from @Tim Corey:

Hey Robert. Like Adam mentioned, it's not a good neighborhood. I am actually under contract for a three unit a bit further South-East from there, closer to the river. Our other rentals in completely different areas, we have a duplex in Penfield (east side suburb, our primary residence) and a duplex in the south wedge. Over 6 years, our south wedge property has appreciated 40%, rents have gone up 45% (granted, we put some work into the units), and we've had 1 month of vacancy. Tenants have all been either students or recent grads.

It's going to be a completely different story with the triplex we are purchasing. We are expecting very little appreciation and more tenant issues (one tenant is currently not paying). It is the first property where we are going to use a property manager. It depends on what tenants you have in the property, but I personally would be hesitant to remote manage.

It just depends what you are looking for though. I'm happy to chat if you have any questions about the area and market.

Hi Tim,

I am new here and looking to close my first property in Rochester. Could I please PM you to pick your brain a bit more on investing in this area? Thank you!

I'd be happy to, feel free to reach out.

@Tim Corey hi Tim can i ask your opinion on the Upper Falls area? zip code 14605. i am in contract with a 6 unit there, it is currently occupied but a management company i briefly spoke to denied to manage the property due to the area. im on the fence wether i should go with it.

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Upstate New York, New York

Quote from @Mark Brogan:

@Jon Joro
make sure you contact the park owner/manager to get approved before exchanging any money due to past tenant could owe back lot rent also the park could be wanting the home gone from the lot so please contact the park first and if everything checks out you are good to go.
happy investing

i passed on it due to the mobile home being considered "personal property" and not "real estate". i appreciate the advice Mark!

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Los Angeles County, California

All Forum Posts by: Jon Joro

Jon Joro has started 6 posts and replied 17 times.

Post: question about selling with owner financing

Post: question about selling with owner financing

Post: question about selling with owner financing

Post: Is this strategy valid?

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Post: how can i be protect my interest when selling a property?

Post: Buying investment property in Rochester NY

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Post: investing in a Mobile home