All Forum Posts by: Larry Smith

@Account Closed

Thank you, I will keep looking and trying ways to close deals. I will let you know what happens with this deal also!

I was going to offer cash. I realized it would take months so the private lender would loan me the money. 

And you are correct. Would you walk away from the deal? @Account Closed

Thank you  @Account Closed

I never knew that scam even happens. That is crazy.

Also, I decided to do a short sale. Going to try to get the property for 10-16k.  Haven't done one yet so if anyone has any pointers or things to watch out for that would be great. I am writing up the proposal tomorrow and I am not sure what to put in it exactly so any advice would help. Thank you all for helping me not make a bad decision!

@Andrew Fidler

I also agree. Thank you very much. This would be my first property and I was looking to get it with no money out of pocket then get my own mortgage on it with a lower interest rate. He spoke with me and had some concerns himself because he was taking on 100% of the risk and he is willing to do a shortsale. The position I am in is I haven't saved up that much in cash yet and was still trying to get in the game. 

Also he is willing to do the subject 2 but he wants to put in the contract that if I don't pay the he gets his property back. Although it was his to begin with so I don't understand that.

The home is is great shape besides the roof, the slight leak in the A/C, indoor paint, and the kitchen laminate  floors bubbling up due to a fridge leaking but nothing serious. 

@Allen Fletcher Great Advice! Thank you very much.

He already owns a home so he isn't worried about that. Also once I have made payments for a years it goes off of the debt to income ratio when looking for a mortgage because they see that its coming from a different source. It does stay on their credit though. I really appreciate your help. I am making the check out to the lender and I am going to double check and make sure that he is allowed to do it.

@Engelo Rumora Its in toledo ohio. The guy live in florida now so he can't keep up the property. I live in toledo also

I have not. I am going to look at the property in an hour and then I was going to get some more info from him like what his payment is every month.  The taxes is 1513.00/year. Not sure how  I could enter a subject 2 into the rental calcs tho if that is what you are asking. If so how would you run the number? @Allen Fletcher

Hey BP!

So a couple days ago I go a call on a craigslist add that I posted. 

The guy has a home in Toledo, Oh that he can't take care of because he lives in FL. 

Info on home

4 bed 1 1/2 bath

2 car garage

Roof- needs replaced

kitchen- some updating

carpet- needs replaced

water heater- 20 years old. probs needs replaced

I figures 15-19k in repairs

The homes in this area are selling for 50k-60k. He owes 40k on the home and just wants to get out of it. He is currently renting it out for 800/month but could charge 850-900/ month

I realize  that a cash offer wouldn't be great because I am way bellow how much he owes.

I was thinking I could Subject 2 the homes and just service his mortgage payment but I don't know if it is worth it or not because of how much repair the home needs before it it rent ready.

BP WOULD YOU DO IT? 

Side note- SUbject 2 is like a land contract but instead you get the deed at closing instead of after mortgage pay down

@Darrin Carey 

Thank you for your reply!! I will be there on the 13th. Already decided that when we last spoke haha. 

But do you mean when running the numbers to account for the rent as if I'm not living there to see if it will still be a good investment even after I leave? Just trying to make sure I understood you correctly.

The book on Rental Property Investing mentions this I am pretty sure.

Thanks again! See you on the 13th!

*update*

The seller was had to choose between my non cash offer and a cash offer.

They chose the cash offer so I won't be getting that one. 

But thanks to you all I learned so much so thanks for all the help guys!

Connect so we can do some deals! 

Thank again everyone