All Forum Posts by: Joseph H.

@Ashley Zhang Have you looked at options such as house hacking? Once you find a partner that works with you and you two are on the same page, the work you put into funding them will pay off in multiple ways. Both would grow in both knowledge, experience, and wealth. 

You could find a partner, go to your local REI groups. Share your experience and knowledge and learn from them. There are always options. Read @Brandon Turners book on How to invest in Real estate. 

The goal is to get the property for 70% of ARV. So of the property is worth $500,000 then your number after fees, rehab estimates, closing costs, etc... should be at $350,000. I may be missing something since I don't wholesale houses, but there is a calculator you can use under the tools tab on BP.

I am looking at multiple properties for sale at a decent price but wanted to check what you all have to say about the terms for seller financing. My questions are as follow:

Do these terms below sound about right?

Can someone help explain the balloon portion of the loan? I read about it but do not fully understand it yet.

What are some things I should look for in the contracts? Land deed, and or property deeds? Which one is better and why? I want to own all of the property to include the land, and maybe I do not fully understand what I was researching on that topic.

How do I both protect myself and the lender to where we both benefit from the transaction?

I am not as familiar with seller financing as I am with traditional and other types, but looking for any knowledge I can find. Thanks for the help!

This is what my agent found out from the sellers agent:

I just got an answer from the other agent on the owner financed properties.

They are doing a 30 year amortization, 10 year balloon, 7% interest rate and 15% down.

He said it would be different for an individual. I guess that is as opposed to an investor

@Brie Schmidt

How did the deal go? Can you share your experiences? I am looking at a potential 5 property deal with 11 units total.

I will be out of town, but it might be easier to meet with you outside of these meeting at first since my schedule doesn’t work until May. 

@Colin Smith

Hey Colin I found this post just now and kicking myself for not finding it earlier. All well, I am hoping to make it to one of the meetings.

Alright, I am a little nervous but I am putting in an offer on my first investment property out of state using a HML. I have done months and months of research and reading and feel confident in the way o am doing this but I have several questions.

A property I am looking at is going for $130,000 and I am offering $120,000.

It will need $15,000 in rehab

A “tech-fee” of $150 paid by the Real Estate agent if the offer is accepted.

A 4.5% upfront cost for the HML and a few hundred for documents and title closing.

$1,000 earnest if the deal is accepted

And the property comps for $165,000 fixed. (Rough number ran by the REA, with a more precise humber later today)

The property is estimated to rent for $1,380 a month which I can probably push to $1,500 once rehab is completed. With a cash flow of $400 and 7.8% a month.

I am finishing a duplex next month and refinancing it with a cash out loan which will go towards the rehab of the new property.

I am looking for someone that has some experience in the KC, Mo area with this as I am from there but do not currently live there. I want to make sure I am doing every step correctly and in order so I don't mess this up. I am new to HML and would like some advice or guidance if possible. I have bought property before with VA loans and cash but need Conventional or HML. Any help would be appreciated.

Last post was 28 days ago. Is this still a go for Friday?

This would be a group of about 5 guys from work who would come up with the 20% down together for the property. The plan was to AIRBNB or VRBO when we don’t use it and have that pay on the mortgage to reduce any payments we may obscure. We want to set it up to where the five of us invest in the 20% evenly and we split any profit evenly. I know there are some legalities I will need to sort out with a lawyer such as contracts, but wanted to get your advice on how to pursue going about this process and the best way to find a house or property.