All Forum Posts by: Mitch Messer

Hi @Frank M.! I see two big problems with a sale leaseback in this situation. First, if they can't afford their current payment, they definitely won't be able to afford your (higher) lease payment. This is an eviction in the making; it's only a matter of time. Which brings up the second problem...

After you've paid their $8K in back taxes and purchased the home subject to the existing mortgage, they are going to eventually get into financial trouble again. You're going to try to evict. And that's when they are going to claim that they didn't understand that they were selling their house and that they've been bamboozled by a sneaky real estate operator (that's you!). They'll forget the tight spot you got them out of and demand their house back. Maybe a judge listens, maybe not. Either way, you'll be the bad guy and will lose, no matter the outcome.

Whatever "special meaning" the house holds for these folks wasn't enough for them to keep up the tax payments. They need a cheaper place to live.

Purchase the home, if it makes sense, but I'd strongly recommend paying them a few bucks to get them out and then finding a tenant who can actually afford to live there.

Three-level 4/2, built in 1991, 2304sf. Off Market and in very desirable Hillgrove High School District. Needs roof and minor cosmetic repairs. ARV is $200K - $205K. Fix-and-flip or hold for long-term cashflow!

RECENT RETAIL SALES:
$196,000 - Sold 10/2015 - 1496 McAdoo Drive, Marietta, GA 30064 - 4/2 - Built 1991 - 2,092sf
$208,000 - Sold 7/2015 - 1556 Hascall Drive, Marietta, GA 30064 - 4/2.5 - Built 1988 - 2,716sf

ACTIVE LISTINGS:
$240,000 - 1663 Westport Point, Marietta, GA 30064 - 4/2.5 - Built 1992 - 2,599sf
$250,000 - 1960 McEachern Manor Drive, Marietta, GA 30064 - 4/2.5 - Built 1981 - 2,094sf

Interested? Call or email me for the address, photos, and full property details.

Hi @Ali Daiy! Your squeeze page is missing one critical question: "How quickly can you close?" True cash buyers can close in about a week, so anyone who responds with a timeframe longer than that is probably planning to use hard money. Hard money is not the same as cash, contrary to popular belief.

We have done numerous co-wholesaling deals. I'd be happy to walk you through the pitch. Just give me a call. My phone number is in my profile.

Hi @Daniel Humphries! Can you share the deal criteria and geography your investors are seeking? If not here, then let's connect and exchange contact info.

Hi @Joshua Pope. We ask agents to add their commission to the price of the property before presenting it to their client.

So, for a $50K house, an agent in our market would typically add 3% and present $51.5K to their buyer. From there, no matter where we end up in the negotiation, we'll make sure the agent gets paid 3% of the final price at closing, no matter what. Happy agents makes for a happy wholesaler!

@Account Closed, that 120 days is pretty scary! That would certainly be a factor.

In this seller financing scenario, the foreign investor would be the one being foreclosed on. So, if they wanted to make things less scary for the seller, they might agree to record a quit claim deed at closing returning the property to the seller, and then draft the note such that, upon any default, said deed would be executed.

If the investor does default, things would have really gone sideways for them: They would have just forfeited sweet, low-cost, non-qualifying, non-recourse financing. At very least they should be willing to give the house back to the seller. Dragging things out at that point benefits neither party.

@Account Closed, your foreclosure and underwriting concerns are valid, but that's going to vary hugely from state to state. Here in Georgia, our foreclosures are non-judicial: four weeks of notice in the county organ, then auctioned off on the courthouse steps. Given your comments, I assume that's not the case in Nevada.

Good point! Additionally, that incorporated US entity could then go out of its way to have zero (or minimal) earnings, either by making additional principal payments on existing debt, or by purchasing additional properties.

Once a "beachhead" has been established in the US, it seems wise to use the proceeds from that initial property to reinvest in the local real estate market, thereby side-stepping some of that foreign exchange frictional cost.

Thanks for that insight!

Given the high total costs of US financing, it would seem that getting the seller to accept payments on any portion of the total price would be a win. Take, for example, a home priced at $100K which might be typically be purchased with an $80K bank loan and $20K down.

If the seller doesn't need all their money at closing, you might be able to get a $50K bank loan, still put $20K down, but create a seller second mortgage for $30K. If that second mortgage rate is low enough (say 5%), you'd be far better off with this approach.

Plus, if the seller was just going to toss their sale proceeds into a bank CD anyway, they'll make way more from the second mortgage note (at least at current rates).

Adorable 3/1 in up-and-coming Macon neighborhood. Tenants in place with long-term lease. No repairs needed to get a 17% cash-on-cash return!

• Location: Macon, GA 31206
• 3 Bed, 1 Bath; 915 sq ft; 1-Car carport
• Updated for new Tenant move-in in Sept 2015. 1-Year Lease
• Rent: $400/mo (Below market to fill fast. FMR: $450/mo)
• Price: $14500

Interested? Call or email me for the address, photos, and full property details.