All Forum Posts by: Kody Veit

@Jack Bobeck as @Mike Flora has provoked, I should have mentioned the property is free and clear. My concern with a lease option would be at the end of the term if I go to buy and she decides not to bc she now has a rehabbed property I could find myself in a legal battle I dont want to be in. Or if I am reading that clearly what you are referring to is a middle man type deal where I then try to sell it to another buyer through a lease option as well. Again though my concern is with the intentions of the current owner. 

I have found myself negotiating a seller financing deal. The property is in a great rental location however needs a fair amount of repairs, somewhere in the ballpark of $30-$40k. It is not currently live in ready and the seller has expressed interest in seller financing largely do to the fact that the property may be difficult for her to sell on the market. My concerns and thoughts are towards putting money into a property that is acquired through creative financing and not through a conventional loan. 

I guess it depends on how the deal is outlined in the contract but is there any possibility / has anyone experienced putting their own money into a property to only have the seller end up backing out of the deal or defaulting on the financed portion to reclaim their now newly fixed up property.

I guess this is where an attorney comes in and a title transfer off the bat would be advised. Any shared learning experiences would be greatly appreciated!

Kody 

Thanks @Tim Youse and @Account Closed for the input. I currently live right down the street from the property which will fortunately allow me to keep a close eye on the work being done. I like the idea of having a GC help manage however I do want to minimize my expenses on the project.  

Hello,

I am looking at my first property and am searching for a contractor(s) to walk the property and help establish a SOW. Definitely some HVAC and electrical work in addition to refinishing flooring. Has anyone found it best to hire a GC or individually break out the work based on experienced professionals who focus on a specific trade?

If anyone has any contractors who they have had success with in the Baltimore Area, I would greatly appreciate any references!

Kody Calvin

@Kimberly H. congrats on your first deal, thats awesome! I have recently just been approved for a 203k loan from Movement Mortgage. I have not purchased a property yet but am looking. I can tell you the application was easy however what lies ahead i cant say but my loan agent has been very helpful and quick to response. They were recommended by someone on BP when I had staged a similar post to this one. DM if your interested in contact info. 

Would you be able to provide more detail on how/what the program was that allowed you to get such a low down payment on a conventional loan?

@Mike Watson I am looking into the power of seller financing. It seems to me most scenarios offer a purchase price for the property on which the seller collects an interest payment each month. However it seems you need to be able to refinance to pay off the remaining balance of the purchasing price (minus the down payment). Does this strategy fail if there is hardly any equity in the property? Is there ways to structure a seller finance deal around that? Is this strategy limited to larger apt buildings or can you use this strategy in townhomes or residential (up to 4 unit) multihomes? 

Thanks for sharing this post, I am finding the info very useful!

Kody Calvin

@Eric G. welcome! I am also right in Baltimore and am looking for rental properties long term as well. Would love to hear more about how you acquired the two unit in Canton. I currently live in Federal Hill and it is very expensive so I have been looking in other parts of the city. Would be interested to hear your thoughts on Canton. 

@Luis Aguilar thanks man, other creative financing strategies could be good to look into as well. I think when you go to make an offer its always best to provide a few deals. If you can find a motivated seller for whatever reason you can throw some other strategies related to seller financing or even lease option (or sandwich lease option) which I think is a really cool way to get a property without much money but can be a win for all parties involved. For more info on lease options refer to Brandon Turners book on investing with low and no money down to get some gears going. I will definitely be researching more on the subject to look to incorporating that into my investing. 

@Duy Mao welcome to BP and Baltimore! I have been recently driving through that area to get a feel for it and look to focus my eyes there as well. Seems to be a good location for rental units considering the nearby attractions. Best of luck, message me if you want to connect!