All Forum Posts by: Jeff Warner

Sale price is 1.6 million. My main question is this:

What are your thoughts on these numbers? See any red flags, especially with today's interest rates.

By the way....I'm in the fishing tackle and fishing guide world so this is a slam dunk from an operations standpoint.

1 Vote

Quote from @Masashi Borges-Silva:

Quote from @Jeff Warner:

@Jay Hinrichs - Sorry to keep dragging this on...just trying to get my mind around this so we can do this deal.
I would be making the mortgage payment for the seller which includes property taxes and insurance, would I then get my own home owners insurance policy or just leave everything in place until we refi?

Jeff

I realize that this was 6 years ago, but I wanted to give it a shot for asking for help.

I recently heard the terms "Wrapping mortgage" and "subject to" method on a BP Podcast, and I am trying to understand these concepts better. From what I understand, they involve a buyer (me) taking over the mortgage payments of the seller, but I am not entirely sure.

In your situation, the SFH mortgage was at $149k and the comp was $170k. You (buyer) paid the seller $65k, and the remaining mortgage was $84k with monthly payments of $650. Did you use a seller financing method with an added interest rate and paid it off in a year, or did you refinance it before the first year?

I would appreciate it if you could provide me with more information, particularly on how you ended up with the deal that utilized these methods. Your insight and knowledge can help me better understand this concept and make informed decisions in the future. Thank you in advance for sharing your experience with me.

That deal sadly fell apart, which was a good thing. We ended up closing on a much nicer house with zero down. Sometimes patience is helpful 😁

-Jeff

1 Vote

Hey @Oliver Salmon, this home may appraise for slightly higher, but yes, I think $149k is a fair price, not a steal.

We love the house but at the end of the day, it is a risk not worth taking...at least with the way it's structured. I'll see if he will be willing to take $20k down and the rest in 12 months.

0 Votes

Wow...Kate is fantastic! Thanks for the referral, I would highly recommend her to anyone needing a real estate attorney. She called me back right away and took time to talk me through the deal I'm working on without asking for $ like everyone else does before a consultation.

Originally posted by @Eric Steindler:

I like Kate Brooke at Brooke Law Office. very well known and longtime real estate attorney.

The site is telling me I can't post her contact info, so you will just have to look it up.

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I second Marc's plan! Not that I'm against a fix and flip, but this is super easy. If your willing to buy beat up mobile homes, park managers will not only LOVE you, they'll show you some you didn't even know were available.

Originally posted by @Marc Faulkner:

I like to buy them and flip them "as is" without doing anything other than marketing, writing up the sale and getting paid. Fixing things and managing rehab projects is not my thing. I have found that as long as the deal is good and you rep the home properly, you can find plenty of buyers who won't mind the project. Better yet is getting a good deal on something that is turn key:) Those are a little harder to come by but, they are out there.....

2 Votes

I'm looking at buying this to live in, not flip or rent out:

SFH $149k (house in nice, not a fixer) - Price is fair, not a crazy discount.

Seller owes $84k, very motivated and just wants his equity out ($65k). Loan is not assumable.

I have a friend that will loan me $60k for a year at 4.75%, no early pay off, I'll put in $5k.

I've thought about a Sub2 deal but I've never done one and I'm hesitant. Planning on a refi in 12months.

Here's my problem: I took too many write off's and only show $18k net income so I can't qualify for a traditional mortgage, even though the cash flow is there. Also, I haven't used credit in over 10 years (zero debt, not bad credit at all), building that up as we speak.

0 Votes

Awesome, thanks @Eric Steindler

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Jeff

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Does anyone know of a real estate attorney in Oregon, preferable one that understands subject to deals?

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All Forum Posts by: Jeff Warner

Jeff Warner has started 19 posts and replied 483 times.

Post: Fix and Flip cabin

Post: Help with analyzing a deal (1.6 million)

Post: Wrap mortgage / subject to / Owner finance

Post: How would you do this deal?

Post: Southern Oregon real estate attorney

Post: Anyone tried fixing and flipping mobile homes?

Post: How would you do this deal?

Post: Southern Oregon real estate attorney

Post: Wrap mortgage / subject to / Owner finance

Post: Southern Oregon real estate attorney