All Forum Posts by: Moshay Laren

Good Morning, 

I have deal I've been working on for the past 2 months. When we first acquired the deal the seller's price was simply too high and we got very little interest or feedback from buyers. Now that we have successfully talked him down, cash offers are coming in ranging from 60K-92K. The highest offer of 92K is a seller finance. The first problem is the seller only wants to give up 3%, which would be ok for me as I am willing to take 1.5% just to close the deal at this point. However, the second problem is the buyer's agent will not agree to anything less than 3%. Being new to seller financing I have a few questions I am hoping to get your advice on: 

1.) Can you charge points on seller finance deal?

2.) Seller wants to set terms for a 12 month payoff. What would be considered a fair interest rate and monthly payment? Note: Buyer has agreed to 20% down payment

3.) Seller wants to ensure he will not be liable for debt should buyer default on paying contractors or third parties etc (i.e: mechanics liens). Is it possible to include verbiage in contract that will preclude seller from such liens should buyer also default on the loan and house is foreclosed upon and returned to seller? 

4.) I can probably answer this myself....but am I responsible for performing due diligence on buyer to determine their ability to pay?  

Thank you in advance for your counsel!

@Bill Gulley  Got it! Thank you 

@Gregory H. thanks for responding. That was a typo it was suppose to be (.1 mile) 

@Bill Gulley  thanks for res

Hello BP! 

I have a contract on a parcel of land in a vastly developing community in South Philly. The purchase agreement is 100K. The lot is 643 sq ft. Other comparable lots in same area within (.1) mile are listed on the market for $79,990 - $123,500. New construction homes within (1) mile averaging between 1100-1600sqft with comparable lot size are selling between 300k-419K. 

1. Is it safe to average the cost to build a 1400sqft midlevel home between $100 - $120? Or is that too low

2. Is it ok to average the ARV (once the home is built) at 400K?

3. "Can I" or "how do" I use the wholesale calculator for this scenario? If not, what analysis vehicle would you recommend I use to show potential Cash Buyers the ROI?

Thank you in advance for you assist! 

@MarkMynhier - I echo your sentiments 100%! Thank you for offering a template. Look out for my email. 

@JoelOwens - I agree! I like your choice of words better. Language is important! Thank you! 

@TuanLe Tell me about it! !!!!! Lol 

@arlenchou you are the bomb! Like Really! Ok so, can I buy you a drink or treat you to lunch by way of a gift card to take time out of your busy scheudle to overlook my proposal?  Truth is, I haven't found a mentor in my area yet, but I'm looking. I'm so grateful to you guys here on BiggerPockets. 

@ArlenChou wow! Thank you so much for your detailed and informative response. I realize they are family and friends but we are talking about a pretty substantial amount of money so I definitely want to present it to them in a well-packaged manner so they will be assured I did my research and thought things through but ultimately on the return of their investment. This helps a lot! Thank you again.

Hi @RyanD thank you for your input! 

@SteveVaughan I like the idea of being reluctant...kind of makes them curious to know more and then I can get into some details. Gracias!