All Forum Posts by: Kyler Pace

There are lenders out there who will lend on the individual property and it's cash flow rather than your personal finances. I'm not sure if I can name names, but Dominion Private Lending, Tital Loans, and Visio Lending are just a few that offer that product. I haven't used any of them yet, though.

You'll get the best rates and lowest (no) fees with Iron Bridge Lending. 

I saw a listing recently that was "virtually" staged and it actually looked really good. Of course that's only good for the photos but it's something you could look into. 

@Neal Collins Wasn't banning pet rent in Oregon considered in the last round of rental laws? It's hard to keep up with what made it in and what they keep talking about doing!

Thanks, @Ned Carey. The property is currently worth roughly $630k, and the option price would be $503k. We would still get the original contract price the tenant had from 3 years ago. As far as what I do if they can't exercise the option, that's exactly what I'm trying to figure out. How do I best protect my position? One thing that could help is putting in a tiered split of the profits. So, if we exercise the option and get it sold by the end of next May, 50/50 split, June 55/45, July 60/40, etc. That should incentivize him to make it happen. And, in worst case scenario, I take out a hard money loan (or find an investor), exercise the option, then sell it. Yes, it is definitely risky. I'm also going to talk to an attorney to get advice.

I have an interesting deal that I'm looking at and need some guidance and advice. Here's the story:

A tenant had a 3-year lease option to purchase his residence but was unable to exercise his option due to not having good enough credit to get a mortgage. He is looking for someone (me in this instance) to step in, offer the seller a $25k down payment to extend the option for 12 months, so that we can turn around and sell the property next spring. It looks like the seller is willing to do this. He's offering me a 50/50 split of the profit when we sell. My share would probably be around $35-40k.

I certainly haven't ever done a deal like this, so what kind of due diligence do I need to complete? What questions should I ask?

Also, any ideas on the best way to structure a deal like this to best protect my investment? I don't have all the specifics yet, but I think the tenant is going to want it to be a straight lease-option between me and the seller, but I have also been given advice that a land contract may be a good way to go. What are your thoughts?

@Jordan Sparks it is in SE, just off of Lancaster. It's getting close to being finished up and will hopefully be listed the first week of April.

Hey Brian, 

I am also in the Portland area and currently have a single family flip going in Salem. Would you mind sending me your contact info for the lender you used? Sounds like they had good terms for your project. Thanks!

Yep, and if I wanted to access the other $120k in equity I have, that's what I had to do.

I understand the new rules regarding the tax deductibility of HELOC interest, but I have a situation that isn't quite so straight forward. I have a HELOC and used a portion of it to pay off a silent second mortage on my primary residence. The original silent second was the down payment. So, under the new rules, it was used directly on my primary residence but not to make an improvement, and in a way, it was used to "buy" it, although I didn't just purchase it. Can I still deduct the interest?