All Forum Posts by: Melissa Harris

@Steve Vaughan do you pay the bank anything to service the contract? How did you approach the local bank to do this for you? Do you plan on refinancing to pull your money out and pay the seller back?

@Steve Vaughan good to know the terms you usually do. Can I ask what interest rate you usually pay? Or what is pretty typical with seller carry?

@Dave Foster this is exactly what I was looking for as far as input goes! This helps a ton on talking to the owner and seeing if this is an option for him :) 

Has anyone done a BRRRR with seller financing? Was it a success for both sides? What were the pros and cons? I was thinking that this could benefit both parties in ways of, on my end I could save money with not having to pay points or a higher interest rate to a hard money lender and maybe have a lower monthly payment and then for the owner, he could drag out what he pays on capital gains and ultimately pay less in capital gains tax because as it sits right now, he would make around $190k from the sell of the three plex. The three plex needs about $80k in rehab.

Another question I had on top of that was, I have a townhome that I am selling currently and need to do a 1031 exchange. My question is, would the IRS see it as a successful exchange if I put what I make from the townhome towards my down payment to the owner?

@Reece Iovine I appreciate your input! This is something that I should definitely consider

@Justin Cooper Good points! I'll get more of those details and answers today when I go look at them today.

@Sean Blomquist I certainly will! Thank you.

I am looking at buying a fourplex and wanting to do the BRRRR strategy but my only issue will be the tenants that are there. 2 of the units I can start the rehab when I close but the other 2 I won't be able to due to the tenants being there.

So my question would be, is this still possible to do? Would a hard money or private money lend me the money in order to buy it and renovate it if this is the case? Any guidance would be appreciated :)

It would depend on what other comparable duplexes have sold in the Fort Collins area and what you bought it for. This will tell you if it will be worth the effort and money to convert it. If you would like I can help run comparables on the MLS. Just send me a message.

@Cody Harter give my dad and brother a call! They can help you with that :) My dad's phone number is (970)397-1428, his name is Mike Harris.