All Forum Posts by: Korey Scott

Thank you for responding. I sure appreciate it. 

Hello, 

I am thinking of asking friends and family to fund the down payments for hard money loans. They would do 10% of the total loan as the down payment. I would then get the money through the hard money lender, rehab and refinance the property. Then I would give the down payment back to my investor plus the interest rate we decide on. After that the have they option to retain 10% equity in the deal as a limited partner. They would receive 10% of the cash flow and 10% of the profit when we sell. 

This may not be a new idea, but i just wanted to get some advice. Obviously this would eat at the cash flow, but i figure if i can keep reinvesting their initial capital I could purchase so many more properties than on my own. I could even faze out investors all together once i build enough capital. 

Thank you for responding! Yes I verified rents in the area and comps. Price is accurate, I could work it down if I used regular financing. We are working on getting into the property with our contractor to look over everything, go over current leases, etc. We need to go over expenses still. The area is Kalamazoo Michigan and these style of rentals is common. I’m going to review what I’m offering with a lawyer. What I think I’ve landed on is a land contract, with down payment being her free rent and refinancing after 13 months. She would pay her part in utilities as well. If the numbers make sense I think it’s a good deal. I’ll still need to do my due diligence and verify everything. Based on just receiving down stairs rents it still should cash flow. After the refinance and I begin collecting rent on the upstairs unit it would meet the 2% rule id like to see on the property.

Tell me if this is correct? i have confused myself and what i'm think sounds to me like partial subject to and seller financing. 

i let her live for free for 13 months. totaling 10k as a "down payment" i purchase the property at 99k minus the 10k down payment. So it would be financed with her at 89k for the seller financing aspect. Now I pay her the terms we agree upon that would cover her existing mortgage payment. i collect the rents, pay her the mortgage payment and pay for all operating expenses. At the end of the 13 months i would refinance the property for what i owe on the loan. also after refinancing does she get the funds? 

he owes about 47,000 so at refinance she would get around 40k

is this all correct or am i just overly complicating this whole situation?

i'm sorry you are correct. i was taking into account the bedroom upstairs she has rented. That will not be included. And yes. After the year i would charge the $400 per room upstairs. Ideally i would like to refinance before that year is over. This would be my first deal. So any and all info is welcome. 

Hello and thanks for stopping by to help!

i have a couple questions and see what everyone thinks! i would also like to have everyone's opinion on how to proceed! 

Okay, here is the deal. i have a someone i am speaking with about a duplex she owns. She wants to still live in the upstairs unit which is 2 bedrooms. Down stairs is 3 bedrooms. The leases are sublets per room at $400 per room. What i was think is offering to do a seller finance deal for 5 years with a balloon payment. i was going to have her live upstairs for free for a year instead of giving her a down payment. She is asking $99,000

Location is Kalamazoo Michigan 

Rents as far as i know total $1600 for the downstairs 

insurance is around $80

Taxes are around $150

payments to her i would assume to be around $800 

Any advice on how i should approach this i appreciate! thank you so much!

One house is bank owned for an asking price of $30k needs about $30k in work. ARV would be between 115-120, but i feel for the area i can only get 8-900 in rent per month. This is based of the medium house hold income of 35k keeping rent at the 30% of income for the area. I have access to about 20k in reserves for any unexpected issues.

i was thinking of using private money to fund the rehab and refinance the property. Maybe for 90K and 1031 the remaining into another property, holding the property for 4-5 years and selling for the 115-130+ if the market goes up like i expect.   

I feel as if I'm over complicating things, but being my first purchase i'm trying to account for my inevitable mistakes. i would rather have cashflow over anything.  

Hey all! I have found a lot of potential properties around a new casino in my area. Some need work others will rent as is. My question and I know it’s a broad question, so I expect broad answers. When I do a rehab on a property and the end result is worth more than what I can get in rent, do I refinance it to keep it at the 1% rule? Or do I refinance for the full value? Or if the numbers make enough sense do I sell it? Any and all advice is welcome. Thank you for your time.

i figured it out. 2% is great! all that i want is $100 cash flow per door. i can adjust rents with the current tenants. i will talk to the owner and just talk with them on why they are selling and go from there. There is a first time home buyer program in this area. We own a house but its all in my fiance's name. I will use that program for whatever deal i come by and pull a heloc on our house for any issues with the property. I admit the deal is lien, but its a newer property and close to home.. we will see.

Hello everyone!

I’m a new investor that is looking for my first deal.

I have come across a duplex listed for sale by owner for $135,000. Both units are already rented to long term tenants for $750 a month. Location is South Bend Indiana.

I have no capital to offer in the deal as of right now, but I would like to approach the deal as owner finance. I cannot house hack the property since both units are already rented. I don't believe that i personally need to have capital to get started, but every time i find a deal that i get excited about i get frozen, don't act, and lose the opportunity

First thing I need advice is how can I approach a deal with no money?

Second is the actual numbers for the property. I feel I need to increase the rent per unit by $20 a unit to be where I want to be.

i have done everything i can to get involved in investing in my local area. I started a Facebook group for local investors, i attend seminars, i reach out to sellers, talk to agents, etc. I can get a heloc on my current resident, but that is the only option for me personally to come up with any sort of money. I have friends and family that are interested in getting involved, but i want my first deal to be on me to prove myself first.

I appreciate any and all advice!

Thanks

Korey