All Forum Posts by: Kyle Koehn

Katie Clapper is a good one.

@Blair Poelman My "real job" is building g high end cabinetry. I would say about 90 percent of the cabinets we put in get granite. Our granite fabricator just started using a 30 year sealer. Some new product. Not sure what it is exactly but might be something worth checking out. Otherwise quartz is very popular as well as it is naturally non porous and and runs about the same price point.

Ok. thanks. I had thought about offering around 10% down. Guess we will see how it goes. 

@Christopher Phillips You can look at it both ways. To have a truly successful offer I need to solve the sellers every problem and concern. Or at least as many as I possibly can. If there is not enough cash in the deal to go around to all the pockets, I at least, would be less enthusiastic about the deal if I as the seller had to dig into my own pocket and bring cash to the table to close the deal. So I guess I am choosing to make it my concern. Or imagining the seller will want at least as much down payment as all of her direct expenses. So if I can minimize the expenses (without causing PR snafus) up front, then that's what I am looking at. 

I am new at investing and have not worked with an agent much so not sure what is considered normal practice. 

Mistake #1 I wanted information on the listing that I saw on Zillow and so I just submitted a question rather than contacting the listing agent directly. 

Another agent has contacted me and has chased down a few answers to a few questions that I had and now is eager to take me to go see the property. 

I have gotten the information that this is an older seller that is down sizing her portfolio. In my mind, the prime individual to have a mutually beneficial seller financing agreement with. (I have access to conventional financing but would like to pursue this first)

If she would be open to a minimal down payment, how do we slice the pie into enough pieces to go around? Do I have any obligation to the agent that has helped me already? Should I just be open with him and tell him the situation and tell him I will go directly to the sellers agent at this time? Ask his permission? Any way for everyone to get a good deal? I guess I'm not even sure with an average commission rate is. I just don't want to lead "my" agent on if it is in neither his nor my best interest to continue the relationship. 

Tenants all in place. The only one that has a current lease is the 1 bedroom. All solid tenants. Loan officer at our local small town bank, the current owner in the 5 bedroom, and two teachers that teach at the school across the road from my place. The 3 bedroom tenant has been there for 15 years. That is the main reason hers is so cheap. Was hard for the owner to buck up and tell her that her rent was going up. 

@Ben Wilkins The building has an electric boiler that heats the whole building. Any way to separate that out to the tenants?

@Andrew Kerr I basically had that conversation with him. Pretty much told him I wasn't interested and went over the numbers with him as to why. I think he wants to sell pretty bad though so I wouldn't mind coming up with a deal to help him out. I have other opportunity so I'm not emotionally attached to this deal so that gives me the upper hand. He says he has 200k in it with a 30k roof 5 years ago plus some interior renovation. 

I'm not sure how this would all work and if it is even legal but one thought I had was if he would hold a note for lets say 40% of the price (whatever we decide on) and I was able to still get an 80% loan on the rest of it, I could use that to cover the down payment on another property that I have my eye on that cash flows a lot better. I have the money to cover the down payment myself but this would two properties without having to touch any of my own capital. Infinite return. I'm just trying to stretch my creativity to see if I can get what we both want.

If someone like to play with numbers, I have a deal here that you could practice on. My neighbor would really like to sell his 4plex to me. He wants to build a house so needs some of the equity in cash. He is open to carrying a contract for deed for part of it though. The numbers just don't come out very well. I know there are ways with appreciation, compound interest, and the opportunity advantage of no money down that can cover over face value of a higher purchase price. If anyone has any good ideas let me know. 

As you can see, the rents are quite a ways below market value but it will take a while to get them worked up to where they should be.

The building is in really good shape. New roof 5 years ago. Quiet town, apartment close to a school so it has been popular with school teachers. I have the numbers figured as 100% financed. So if I had the owner carry a balance for 5 years until I could get rents stabilized to area rates that would help. Would still need to pay him off eventually. It will need to be reworked to get at least a bit of positive cash flow.