All Forum Posts by: Khari F.

If you must - pick up a copy of "the book on negotiation real estate". Seller's are more focused on price and MAO. You as buyer will focus on terms, concessions, intel you gathered about seller, and market conditions.

0 Votes

What am lost on is what value is he bringing to you and how much is that value worth in dollars? He is saving you from larger upfront costs but how being paid out of cash flow. I assume you already accounted for reserves? How are you managing his construction costs? Does the partnership end after he is fully paid back + interest?

0 Votes

Upstate New York, New York

Quote from @Joe S.:

Quote from @Khari F.:

Hi How would you cash out the equity if assumable? If its assumable would that mean you didnt really sell it? Or Is this just cash flow deal?

I had some of the same questions that you did. I concluded that at 4% interest he could just stay in the deal forever.

I was just unclear on exit strategy. He mentioned he wanted to build equity, hence hold forever. how much of equity would be loss to penalty?

1 Vote

based on this experience what would do differently next time? ive often wondered how to get compensated if seller breaches contract.

0 Votes

San Antonio, Texas

@Chris Seveney Hi is there a LSC that works nationally?

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Quote from @Sylvia H.:

Quote from @Kerry Pangan:

I just purchased my 1st duplex in January. Renovated and tenants area now paying 100% off the mortgage.

What is the best way to acquire a 2nd rental property? I've already used my FHA so I'm thinking conventional 20% down?

Which route do I go to fund it? I’m starting to work more hours at my job to save 40k-50k. It’s not going to be easy but if there’s other routes to achieve capital too that’s easier I’m willing to hear it.

Hi there and congrats. You probably should wait a bit and save some more money before buying another property. Give it a year or so and save, save, save. Your next loan will be an investor loan which will require anywhere from 15 to 20% down. You cannot go FHA again as FHA only allows you to have one FHA loan at a time. Also FHA is only for owner occupied so that will be the end of that. Word to the wise, do not buy any property and lie to the lender telling them you are going to live there. They do check and the fines and penalties for mortgage occupancy fraud are severe. 30 years in prison and up to 1 million dollars in fines. Ouch! You are doing everything right. Save your money and put down the required deposit for your loan. Best of luck to you!

Hi I thought there required a couple years between FHA loans at least?

0 Votes

Grand Rapids, Michigan

Quote from @John Warren:

@Justin Williams I don't think you can purchase the property without taking care of the back taxes. Any time you close, you will have to take care of those before you get title to the property for sure. I would also be a bit nervous about the 35-40k estimate for gut rehabbing the property. I think you might be underestimating how much this project will cost to be honest. Do you have the capital to do the reno? Do you have a solid GC?

Would they have to if paying cash? Why is it?title companies business if there is back taxes if buying cash?

1 Vote

Chicago, Illinois

@Britt Smith will you be in state at all anytime before rehab begins?

- install live feed camera

- smart locks to monitor entry times

- get friendly with next door neighbor and let them know to send you complaints or contact you if there seems to be an issue

- always have written approval before any change orders

- perhaps a % of contingency can be applied as a bonus if they complete the job ahead of schedule.

- let them know you will pay them within 48hrs and have a signed w9 before any payment is made.

- does GC have 2-3 subs in each category as backups

- will they work on weekends if behind schedule? Great gc should be able to delegate and trust their subs

3 Votes

Fort Lauderdale, Florida

Hi How would you cash out the equity if assumable? If its assumable would that mean you didnt really sell it? Or Is this just cash flow deal?

1 Vote

All Forum Posts by: Khari F.

Khari F. has started 13 posts and replied 149 times.

Post: FHA BEST INVESTMENT NAHVILLE

Post: FIRST PROPERTY, SHOULD WE USE OURSELVES AS AGENTS?

Post: Partnering with a contractor on deals

Post: Seller Financed 16-unit with only 8% Down!

Post: Memorandum of contract- How to settle with seller?

Post: Owner Finance - What if owner/seller passes away?

Post: Best way to acquire 2nd property?

Post: Tap into Equity of property with back taxes

Post: Managing Out-of-state Rehabs

Post: Seller Financed 16-unit with only 8% Down!