All Forum Posts by: Doyle Brown Jr.

No problem. Brainstorming this thing out will help arrive at a sound financial decision. Whats the latest comp in the last 90days for a similar condo in your development

Came across this post, and just have to chime in. 

I believe there may be several entrance and exit strategies where you can turn a profit off this deal. Do similar condos in this development go for $38k? Where did you get the comp from?

I agree with you @Eric Armstrong, its in your best option to present the seller with several options to increase your chances of completing a creative financing deal.

Propose seller carry note for 12 months. In most cases you can season your deed between 6-9 months and do a heloc or cash out refinance. Provided you could force appreciation via improvements to property, 80% of Arv/appraisal value could cover your seller financing and fund dollars for your next investment. You'd need to raise the $5k or more via silent investor, family, friends etc for your repairs though.

Last option is to wholesale it. Get it under contract for $15k. Ask for 45-60 days to close. If its truely a deal, cash buyers will want to buy it from you. Assign the contract and walk away with hopefully 2k or more. There's tons of wholesale info on BP.

I'm a DSU Alumni, DM me if you need more help. 

Thanks for the replies @Marc C. and @Thomas S. I stand corrected the community where the property is located is B+ A- for this area. Market rents for multifamily apartment buildings in this area go for $325-$550. Rents can be raised to $550 after I complete renovations. My goal is to BRRR it with no money down through forced appreciation. I'm gonna budget 5K of my own money to repair the down unit and replace all the windows in the building. I'm definitely gonna run more analysis so I'm for certain that I can get my 5k back at bank closing after I pay the balance to the seller.

Close to closing my first rental property deal. No money down. Owner is going to owner finance me for 12months @ 3.5% and give me deed. Im goinging to cash out refi with a traditional loan in 6-8months to pay the note off with the owner but also use the cash glow to improve the property leading up to application for loan with community bank. Its a large 4 plex in a B+ A- community. Rents are $500 per unit. One unit is vacant. Purchase price will be $60k though thou tax value is $108k. Its needs windows now and roofing in 3-5yrs. How much cash flow should I want out of  this property on a monthly basis given this scenerio? Thx for your responses in advance!

@Aaron Douglas "M&R" - Maintainence & Repairs?

Greetings to All!

I'm just starting out in real estate investing in serious way thou I've had lucrative sf subject to and lease option deals that I've profited from on the front end, residually from monthly cash flows, and closings. I used those funds to pay down my bad debts in effort to rebuild my credit so I can finance my own deals in the future.

Currently, I have the opportunity to get a 6Unit apartment building (row of townhouses) at 15% less than the tax assessment value. The property owner is willing to carry a note provided I can pay 50% of the purchase up front, @ 4.25% 20yrs. I'm considering viable options to finance the down payment.

Through negotiations, the owner is willing to take a subordinate on the owner financing note.

Can I do a land contract for the deed and finance the down payment to the owner with a secure line of credit collateralized by the property? Is this a sustainable strategy considering I'm not looking for cash flows?

Thanks for your replies

Greetings to All!

I'm just starting out in real estate investing in serious way thou I've had lucrative sf subject to and lease option deals that I've profited from on the front end, residually from monthly cash flows, and closings. I used those funds to pay down my bad debts in effort to rebuild my credit so I can finance my own deals in the future. 

Currently, I have the opportunity to get a 6Unit apartment building (row of townhouses) at 15% less than the tax assessment value. The property owner is willing to carry a note provided I can pay 50% of the purchase up front, @ 4.25% 20yrs. I'm considering viable options to finance the down payment. 

Through negotiations, the owner is willing to take a subordinate on the owner financing note. 

Can I do a land contract for the deed and finance the down payment to the owner with a secure line of credit collateralized by the property? Is this a sustainable strategy considering I'm not looking for cash flows?

Thanks for your replies