All Forum Posts by: Account Closed

Gene, it all depends on the seller. Does the seller need the cash to buy a new place, or would the seller prefer mailbox money each month? Your best bet is to ask if it's something they'd consider. Then think about how to structure the deal. also check with HOA to be sure this unit can be rented out. Good luck!

I've bought some zero down by taking over payments.  The best way is to market for motivated sellers.

You lost me at 2/1. Are you sure you want to buy a 2/1? Deal has to be good for you, too. Here's why I never buy a rental with one bathroom: any plumbing g problem is a plumbing emergency. Also, I'm not big on two bedroom houses, as most anyone with a choice would prefer a three bedroom. My general rule of thumb is to pay 30 percent of ARV for a 2 bedroom house, if I buy it at all. If you're paying her 30,000 cash, that should be enough. If you want to get it on terms and pay closer to market value, don't put so much cash into the deal. You definitely don't want to be stuck with paying her another $30,000 chunk I'm 12 months, unless you have it sitting in a savings account right now. She can foreclose on you. She is not obligated to renegotiate after a year.

Joe Crump is the guy you want to learn from.  Here are some notes I took from one of his courses:

Joe Crump – Zero Down Hierarchy

When Buying…

• 1.Subject-to
• 2.Multi-mortgage (he doesn’t do a lot of these, as it puts him at more risk)
• 3.Land Contract
• 4.Lease Option
• 5.Assignable Cash Deal

When Selling…

• 1.Assignable Cash Deal
• 2.Lease Option
• 3.Land Contract
• 4.Multi-Mortgage
• 5.Subject-to

When buying, then most of the time the lowest point on the hierarchy that you should go is land contract. If you do find a great deal, then you can still purchase the property on a lease option or as an assignable cash deal, but only do this if you are planning to flip the property. Never do this and then keep the property in your portfolio.

(Joe does not think sandwich lease options are a good idea.)

I'm sure he wouldn't mind me posting this, as he is very giving of his information.  He also has buying events a couple of times a year, where he digs into this and more, in detail.

Hi Jared,

1. Yes, and you are better off offering this kind of deal, as it gives you more control than a CFD. You will be in most control of the transaction if you get the deed.

2.  Yes.

3.  Most lenders will not lend on a house that is for sale.  Also, your title company will pull title to make sure all liens are paid on or before closing, so I wouldn't think you should worry too much about that.

4.  I don't know if you need it, but why not get it?

Hope that helps!

Kim

Hi Bryan, 

I would definitely ask your neighbor first, to see if he would entertain financing the purchase for you.  Then, if yes, you could hash out the terms with him (interest rate, length of loan, down payment, if any, etc.), and write up a contract.

To write it up, just add "seller will finance (state the terms you agreed on)" to the "special stipulations" section of the contract.  Then let the title company or attorney (depending on your state) write up the actual note.  Also get the title company to set up payments through a loan servicing company.  

If you're new to writing up contracts, just write everything you both agree to on a piece of paper, and give it to the title company.

Good luck!!!

Nice!  Quite a few years.  Love Savannah!

Hi Aaron!  Welcome to Savannah!  Where do you teach?  

Kim

I live in Savannah if you need any help!  A pool is very nice to have here.  It gets HOT!!!

Just tell them it's a year lease.  You can screen them and others through Cozy.co., and collect rent through Cozy, too! I require their income to be 3x the monthly rent.  Look for great credit scores, too!  If you set up your requirements before even speaking to applicants, it makes it a lot easier for everyone.