All Forum Posts by: Samuel Hall

Monthly real estate investor meetup. No cost or sales pitch. Show up, loosen your tie, have a drink and chat real estate. All are welcome. 

Hi Scott, I know that this is an old thread, I made an REI meetup this month. It would be great if you showed up.
https://www.biggerpockets.com/...

I am hosting a meetup in Grand Junction for anyone within Western Colorado. There is no fee, no sales pitch, just having drinks and chatting real estate. 

This is the first of a monthly meetup.

@Farrukh Amini, Thanks for your reply. It seems that my offer structure may be too unrealistic. What offer structures have you seen in your experience?

I've spent all day on the phone with lenders (9am-2pm) and may have found an acquisition strategy that will work. I plan on buying 2-4plexes. According to the banks I would have to put 25% of the purchase price as a down payment. I may be able to do that. once. My goal is to have repeatable success. However if I were to get title to the property through owner financing I would be able to refinance the property up to 75 percent of the appraised value, using my equity as the "down payment." I would also be able to wrap origination fees into the loan and make my out of pocket costs $0. I stated this scenario to a lender and they said it was feasible. 

Here is my plan, let me know if my logic is flawed or if I am missing an important component:

- Make an offer of 70% of ARV minus construction costs.

- Convince the seller to agree to a 6 months owner carry (lenders require a 6 months "seasoning" before I can refi) 

- perform rehab, get tenants in place and get the place cash flowing

- After 6 months refi. bank orders the appraisal.

- I would provide income data and before-after pictures to convince the appraiser of the forced appreciation. 

- With the increased value I use the %30 equity as the "down payment" and wrap fees into the loan. 

- Pay Seller financing note off

- If there is enough meat in the deal I would pull equity out to finance the next rehab.

- Rinse and repeat for the next deal. 

Thanks for your attention. 

I help run a club in my hometown. I find myself scrambling to find quality content to provide to my members. Do you have any recommendations for creative event ideas or speakers?

I will consult with some property managers after I view the property to determine market rent rates. The property is not in the best neighborhood.

Hi folks,

I plan on making an offer on a property with 100% owner financing.

The property:

- Has sat on the MLS for just short of 365 Days

- has two stick built houses on a single lot.

- I believe is vacant

- I believe is owned free and clear.

- unsure if repairs are needed. I am seeing it this afternoon.

My planned offer:

• Will be 100% owner financing
• I do not know what percentage/dollar amount would be enticing while keeping my monthly payment in cash-flow territory.
• I do not know how to accurately calculate what my monthly payments would be.
• I do not know how I could service the loan if they accept my offer.
• I am considering including a “letter to the seller” providing explanation as to the benefits of owner financing. What is important to convey here?

I would appreciate your feedback on best practices or other success (failure) stories when it comes to owner financing.

I can email the spreadsheet if you want to take a look at the formulae in detail. 

I would like feedback on a rough analysis. Information gleamed from realtor and trulia.com and verified with the County Assessor. The construction estimate is extremely rough: My sense of construction cost is improving, and i am evaluating based on listing images only. 

High AVG calculates the top 3 most expensive Price per square foot on comps (=AVERAGE(G3:G5))

Med AVG calculates all 4 PPSF comps

Low AVG calculates the lowest 3 PPSF comps

HARV, MARV, and LARV multiplies  the High AVG, Med AVG and Low AVG with the subject property square footage (=F9*D2) to give us our after repair value. 

The H,M,L spread take the ARV and subtracts it from the asking price. (=H9-F2) This would be my spread if I were to purchase the property at asking price.

H, M, L purchase multiplies the ARV by 70% and subtracts my estimated construction costs of 20K. (=(H9*0.7)-20000) This will be my offer in order to use a hard money lender to finance the purchase and the construction.

H,M,L, purchase spread subtracts "purchase price" from "ARV" and subtracts our construction cost of 20K (=H9-L9-20000) to get our after repair profit.

This does not factor closing and carrying costs.