All Forum Posts by: JP P.

@Paul Sandhu;  Thanks!! Catching up on this lingo!!  
How did you start into owning property in the USVI?

@Paul Sandhu; What does STR stand for? I've seen that in a few threads in researching ''purchasing a multifamily on St. Thomas". If you have any advice or leads, I'm open to start a dialog.

@Nadja Boulger  I'm interested in picking your brain.  I live on STT, but I'm sure some of the concepts and realities are similar.  I'm messaging you now.

@Demos Thanos  I would love to pick your brain about St. Thomas.  I'm currently here now and trying to seize the opportunity if one presents itself.

Hi @Markita Samuel
It's cool the connection of Houston and USVI.  I am actually living/working on STT right now. And I'm so thankful for these forum strings.  I'm looking to try to purchase a multifamily unit on St. Thomas, but I know the islands is all about who you know.  If your cousin is on STT I would love her contact info to pick her brain.  Thanks in advance.

@Rex Celle;  @Joe Villeneuve;  @Steve Hall
Update.  I didn't go through with buying the place and informed the owner to put the house on the open market.  If the house doesn't sell in 2-3 months I'll purchase the home from them.  
After talking with @Rex Celle I decided I would go with a traditional conventional loan to purchase this home......

If using a conventional financing my focus is to use them on multifamily properties. And I'm going to try to purchase one of those within the next month or so. The numbers do work for me to purchase the property and it would constantly rent, so we will see if it works out that way in the future for me to purchase to property.

 Thanks.  I'll let you know how it goes and reach out if need be.

@Rex Celle

Thanks for the input.  You are correct.  When the owner and myself had previous discussions they thought 1 year.  Yesterday when we talked he actually read off the billing statement.  

Your option is a very well approach I could go.  And the numbers would still work that way!! Plus my mortgage would be considerably lower than the previous owner!!! Additionally, I think the 900 is optimistic, realistically I'm settling for 840.  And in the market area, it's customary to owner pays only for water(which is a city thing).  Thus why those are a factor into my analysis. 

 I figured it might not make complete sense.  Hope this helps explain better.  I was looking at doing a nontraditional purchase strategy.  Purchase from the owner directly and leave out banks and realtors making their cut.  So put 15K down, the owner pretty much being my bank and then having what I would amount to an interest free loan with a balloon payment at the end of the term.  With working to pay down or offer less for faster settlement.  

And I'm not sure if I'm describing a "wrap" or if it's a "subject-to" correctly.  But if I give the owner money to walk away from the house and then pay the mortgage directly that was another approach.  Both of which i don't think work because of the existing mortgage and estimated rent evaluation.

I need help coming coming up with a way to not tell the owner to sell the house.  Here are the particulars....

House retail market price:  66K (I think it may sell for 60K)

Repairs:  15K max

Owner mortgage left: 36,500     interest: 5.00%

Monthly payment: 826.00

Est Rent: 900  (minus PM fee: 90, minus water: 50)  ~760 profit

When working to make the deal I knew they had a monthly mortgage and had one year left (I assumed at worse 2 years.)  My first thought was to give a somewhat low-ball cash offer around 27K.  Cover the last year of mortgage and put some cash in the hand.  Add the 15K reno and I'm done all in.

Next offer was a full retail price with 15K down and payments over time.  Which would have covered last year of mortgage and then give them steady stream payments (~100 p/mo.)  

Knowing that they have 36K more left on the mortgage puts me out the park.  I was thinking of doing some kind of wrap, me giving some money to the owner and then taking over payments.  But with the mortgage payment being 800 it doesn't leave ANY room for profit.  I would like to do fair by the owner, but my profit margin comes first!!!! What are your thoughts on this:  I give 9K to the owner, 15K to repair, and make partial payments (~400) to the owners lender on their behalf.  This way it would give me a small profit.  Thoughts???

Not sure what way I can make this work.  Thanks in advance for your thoughts.