All Forum Posts by: Mark Donohue

We are launching a meet-up for the Bigger Pocket fans of Lake, Seminole, and northern Orange counties. Our first meeting we will be interviewing a local investor and discuss the strategies he is using to build a massive investment portfolio. We will also have a “gets and gots” session along with time to network, giving you the opportunity to build your success team.

@Adam Odom

Henry Ford said that one, I believe.

@Frank Wong one of my favorites! Nice one.

@Nathan Killebrew this is a quote we have on our wall at work:

“Discipline is choosing between what you want now and what you want most.”

When you couple that with this one from Jim Rohn, it’s a powerful combination:

“The recipe for failure is a few small errors in judgement repeated every day. The recipe for success is a few, small disciplines practiced daily.”

First of all, I hate hearing this. What a discouragement for you. I'm glad to see that you are choosing to not allow this to stop your pursuit of your dreams. They say, "the roads that lead to places worth going, are full of challenges and disappointments." Chalk this up to being one step closer to your dreams!

The title company I use for my RE sales business has started to send all but the last 2 numbers for the wire transfer and then will only release the last 2 numbers via telephone to help avoid this situation. It has its flaws, but the customer now knows that if they have all the numbers on paper, it is a scam.

I am looking for a little bit of clarity on how this process will work (ideally) before my DD period expires. Any clarification would be great. This is my first purely investment property.

Here are the steps as I understand them from reading posts and listening to podcasts concerning buying a property with owner financing:

1. Get the agreement of sale with whatever terms are agreeable.

2. Rehab using private money, personal money, or family money, etc.

3. Once the rehab is complete, (ideally) refinance the property into a traditional loan

4. Pay off the owner finance note

5. Any cash left after settling all notes (and paying back family) can be withdrawn (up to 75-80% LTV).

6. Own the property with a conventional mortgage and take checks to the bank.

Is this how you are doing these projects? Also, in step 3, is it possible to us a home equity line of credit?

@James C. I agree whole heartedly. I was thinking owner financing may make the deal more attractive to the seller AND get the numbers where I needed them. 

Thank you for clarifying. I appreciate the help. I wasn’t sure how to close the deal once the house was renovated. 

I am learning thanks to the help of friends like you!

Awesome. So is the loan typically an interest only loan? Here’s what I’m understanding:

Purchase price of 200k with 10% interest to seller. 40k down, making his total payout in 6 months 216k. Rehab costs would be out of my pocket. Am I on the correct line of thinking?

Is there a better or more common way to structure the loan/payout?

I have a seller who is dramatically overpriced for his listing (on the MLS for 300 days when the market average is 65). The house needs a lot of work and I am willing/able to do it.

I am thinking the win/win may be for him to hold paper on the property with a 6-12 month option. However, I am not sure how I could then sell the home and make a profit on the back end.

Is it common/possible to use owner financing for a flip or do I need to use private money and just buy it at the price that works for my numbers?

I own Anson’s book, but seem to have misplaced it at the moment...

I have a seller who is dramatically overpriced for his listing (on the MLS for 300 days when the market average is 65). The house needs a lot of work and I am willing/able to do it. I am thinking the win/win may be for him to hold paper on the property with a 6-12 month option. However, I am not sure how I could then sell the home and make a profit on the back end. Is it common/possible to use owner financing for a flip or do I need to use private money and just buy it at the price that works for my numbers? I own Anson’s book, but seem to have misplaced it at the moment...