All Forum Posts by: Nancy DeSocio

Hello BP community!

I'm in my first attempt to negotiate a seller-financing deal and trying to research if there is a benefit to the seller to receive a higher purchase price vs a higher interest payment?  As an example, with 0% down on a 30-year amortization:

- $300K purchase price at 4% interest = $1432 monthly payment
- $250K purchase price at 5.5% interest = $1419 monthly payment

This example ends up with a similar monthly payment.  I've done the analysis, and either option works for me as a buyer, but is there an advantage to pitching one option over the other?

I'd ask the seller to contact his accountant for specific details that pertain to his tax situation, so this is more of a general question.  I'm not looking for tax advice...more like negotiating advice  :)

Thanks in advance!

Hi @Matthew Jepson

Welcome to BP!  There's a wealth of information on this site, but getting to know some of the experience locals (@Anthony Thompson being one of them) will certainly help you on your way!  

My husband and I started two years ago, and we've learned a ton (and still know so little), so if you ever want to chat with another relatively new investor, I'd be happy to share some of our experiences in the RI market.

Good luck on your journey!

Hi @James Campbell, you don't need to tell the bank what the HELOC is for, so for what you stated, it can certainly serve that purpose. The interest rates are variable, so while many banks will lock you into a low rate for the first year (or whatever promotion they have going on), the rates will fluctuate. So as long as you have an exit strategy to pay off that HELOC after you acquire the property, it can be a valuable tool to have when you find that deal.

Good luck on your journey!

Hi @James Campbell, we just closed on both a HELOC and a Spectrum Home Loan with PCU a few days ago. Depending on what you're doing with the money, the Spectrum is at an incredible rate right now (although your $0 initial draw comment makes me to think this option isn't what you're looking for). I don't have experience with the other banks you noted, but where we just recently closed on both loans, I wanted to throw in my two cents that we had a good experience. Good luck with your research!

Hi @Lauren Finn,

Welcome to BP (and RE investing!).  I'm also a local investor and have been building our portfolio over the last two years.  I look forward to meeting you at the next RIREIG meeting and would be happy to meet up anytime if you're ever looking for the perspective of a "newish" investor :)

Hi @Darin Tripoli,

Welcome to BP...and for taking the plunge into real estate!  You'll find a few RI folks that are regularly on this forum (though I've learned a ton about RE in general from such a large population of contributors here).  I'd agree that you definitely want to attend the Warwick meetup to meet the locals that are doing exactly what you want to do and can help on your journey!  I can't attend this week but hope to meet you in the future.  I'd be happy to chat RE with you anytime!

I realize this thread is old but wondering if you ended up pursuing this further, @Filip Vaco?  If you've met any folks who have done this, it would be great to connect!

We're looking into "investing" in one of the ocean-front condos on Myrtle Beach and looking for others who have experience.  My use of the quotation marks is that I realize it may not be the best use of money, but we want a place to go to a few times per year that will hopefully generate a little bit of income.

I'd appreciate any insight you might have!

Great post, @Michael Fundaro, and I hope you got some of the inspiration you're looking for.  

To look at this from another lens, I'll chime in that the while FI sounds like the ultimate dream, it can be scary.  Careers are often part of people's identity, their social circle and for some, their only network. If the goal is FI, we have to figure out what we want, draw up our own blueprints for the life we want, make the decisions to get us there...and ultimately be accountable for our successes and failures.  It's so much easier to work a regular job and let others make those choices for you, especially when many people haven't done that soul searching to figure out what they want.  

It's okay not to know what your why is just yet..just keep doing the soul searching.  You have many more rotations around the sun ahead of you to figure it out!

“[name] is great and so easy to work with!”

You want to be [name], so do just that. Be the one that people want to work with and don’t get greedy and nit picky with the little things. Help the people who will one day help you in return.

It takes a few rounds of messing this up sometimes, but we learn :)

Hi @Daniel Lehman,

Personally, I would not make this a tenant responsibility on a multifamily.  Are there other multis in your area?  I would try to find a company that already has business in that area to add your property to their list.  It's a small property, and they will already be in the neighborhood.  Honestly, it's a bit late to be trying to secure this now, as many companies get their customers signed in early Fall, but you might have some luck with it.   Keep a bucket of salt and a shovel at the door...good tenants will use it.  There is a lot to learn in this business, but knowing the weather doesn't need to be your job...let those who already do this take care of it.  The cost is worth it.

Good luck on your journey!