All Forum Posts by: Kody Veit

ARV: $100k

Rent: $1,000

Light Rehab <$10k 

Vacant

PM me for details

Pictures:

https://photos.google.com/share/AF1QipNPa2KkEfoqgs...

@Account Closed for the input, I will investigate further. 

Hello,

I am looking to structure a seller financing deal. I have an LOI put together by my Agent including the seller and my own agreed upon terms and would like to run it by a local Real Estate Attorney to see if I have all sides covered. I am coming to BP to get a quality recommendation, if anyone has a connection or is working with an Attorney they approve of, I would greatly appreciate the connection.

Thank you,

Kody 

@Shannon K. I am looking into my first 203k loan as well and am seeing the same issue. The high closing costs almost defeats the purpose of the low % down payment which is the whole attraction of the FHA loan... How did your deal end up panning out for you? Did you find a way to reduce the closing costs / did they end up costing as much as the estimates? Was it worth it?

@Ron Hall The property is paid off free and clear. 

@Jack Bobeck I think I love what you are saying but let me see if I understand what your saying. 

Lease option the house with the current owner with a term of 10-20 years. Then find someone else to lease option who has the capital to repair the house. I would be making the difference btw what my lease payment is with the existing owner and what my lease option is. Sounds like a master lease option? You also advise a 90 day delay on the first payment to the current owner. 

B/c rent is so expensive in this area I had the intentions of possible borrowing the money for the repairs and living in the property myself all the while renting out the other spaces so that I could essentially house hack and eliminate my living expenses to help save. I have the price in mind that I could spend to make some cash flow (after all expenses) in the event I move out and the property is fully rented. Another exit strategy would be to sell the property, which would turn a profit at this purchase price. 

Thank you for your input, it has given me a lot to think about. 

@Keith Johnson I can speak for myself and this particular property. I am not looking to buy at the ARV of the home when it is fixed up. The deal here comes from buying a property that needs repair and provided the aid to get the repair done. The seller is an older lady who has tried to hire contractors herself who have unfortunately taken advantage of her and so she fired them and left the house un-renovated to cut her losses. So I am buying at a lower value than ARV to help her fix the house and sell it (to me). She is limited with other options at the moment. The terms are going to be negotiated by both parties to which we both agree.

@Mike Flora Yes it is owned free and clear. I believe I could get conservatively $2,500/mo in rent. After all expenses including PMI, I would estimate I am left with somewhere around 750/mo. Using that to pay off the 30k in repairs I'd be looking at a little over 3 years. Bc of the repairs I am in a position to get a fairly marginal price on the property as compared to repaired market value, which is another incentive to make this work. Perhaps I can negotiate a similar deal with no interest, will have to run the numbers to see what makes sense.

I appreciate all of your responses and seems that it is wise to ensure Title transfer before anything is done. My gut feeling initially was in line with that as well, but as always I appreciate the insight. 

@Account Closed thank you for clearing that up, a follow up question to that is there typically a required minimum cash exchange or down payment at the table needed in order to transfer the deed or is the contract sufficient? 

@Wayne Brooks Is there a minimum  money exchange required to transfer a title? If at the transaction she gets a note and mtg through a seller finance is there a down payment required or is the contract enough to transfer the deed?

Thank you,

@Account Closed for your input.