All Forum Posts by: Logan Graham

Yes, you can do seller financing still when the seller still has a current mortgage, it is called a wrap-around mortgage. You do have other options but is this house going to be a long-term rental or are you trying to flip it?

@Kenneth Tuan I just want to second the other posts on here. What I do is one lease and they all sign it. The total rent is due even if one tenant starts to not pay the rent. That way they are all still on the line. In the example of one of them moves out what I do is another application processes to see if the remaining tenants can afford the apartment. If they can't they will have to find another roommate. I have found this way give you the least amount the headaches. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $44,900
Cash invested: $11,846

This is a live in flip. We bought the house at a distressed price and spent a month fixing it up just enough to move in. We remodel the bathroom, did some updates to the electric, painted most of the rooms, replaced some carpet and updated the hardwood floors. So far after moving in we added a natural gas line, replaced the furnace, remodeled the kitchen and have started working on the mudroom. We still have to do a few updates to outside of the house before we are ready to sell it.

What made you interested in investing in this type of deal?

I want to invest in multifamily properties but I don't want to do that in New York. We are here temporarily and I wanted to make some extra cash to help me get started investing when I move down south.

How did you find this deal and how did you negotiate it?

Worked with a real estate agent I knew. I used the tactics I learned from the book "Never split the difference".

How did you finance this deal?

My own money and money from family.

How did you add value to the deal?

Remodeling most of the house.

What was the outcome?

Pending... I am still living there.

Lessons learned? Challenges?

It is important to ask for help. But sometimes you have to put the time into it and get it done because no one will care about your project as much as you do.

When making 1 and 5 year plans I have found making the big goals you want to achieve first. After you have the big picture of what you want then you can make plans on how you can accomplish those goals. Hopefully that helps.

I am always reading a book and it is hard to say what book has had the biggest impact on my life (besides scripture). Here is a list of the ones that come to mind that I loved reading and learned a great deal from. Here they are not in any order:

-How will you measure your Life by Clayton Christensen- This book is a must read! It really puts in perspective how you are living your day to day life and for you to make sure that aligns with your goals. Great book!

-Set for Life by Scott Trench- He lays out how to take control of your financial life in a very clear way. (This book also encouraged me to push myself to read more books than I already was) 

-Never Split the Difference by Chris Voss

-The Simple Path to wealth By JL Collins

 -Lifeonaire by Steve Cook and Shaun McCloskey

-Digital Minimalism By Cal Newport

These books have helped shape my thought process into becoming more of the person I want to be in the past year. 

I wish High schools taught about retirement funds. I bet it would be better than investing in Social Security. 

If you are buying a house most of the time the seller pays the real estate agent so I wouldn't worry about it. 

Selling may be a good option if you are looking to grow by buying more rentals with the income(using a 1031). Another option you have is after you remodel the house you could refinance it, raise the rent and buy another property. When it comes down to it all of it depends on what you are wanting to do. All of it requires work however, what work excites you the most?

I would start the eviction process. Section 8 doesn't always have the best trained people so they could be avoiding you because they don't know what to do or they can't do anything and don't want to say that. But when it comes down to it if the tenants aren't paying the rent, eviction would be my next step. 

It definitely adds another layer of difficulty to the screening process. However, you can still deny people based on credit score. There is a correlation between poor credit and people that have been evicted (unfortunately those with poor credit that could be a good tenant are getting hurt). We have just made our other requirements stricter to try and counter the new law. 

Also, if you are getting any info that says if they have been evicted I personally would stop. If you deny them for another reason that could be hard proving that in court since you knew they had been evicted. 

As always talk with a lawyer. Since the law is so new we don't know what the judges will hold up and what they will throw out. Hopefully it gets updated because so far the people I have seen this hit the hardest is the tenants that are trying to get back on their feet.