All Forum Posts by: Nathan Boyer

What are some good ways to pose the benefits of seller financing to a potential seller? What are the differences in tax obligations when they sell and have capital gains vs holding a note?

Kyles advice is great! I saw a duplex hit the market in Hershey recently and it was gone in a couple days. 

@Jordan Lucas

Yeah I did it at 18. You can do it no problem if you have a willingness to learn!

@Isaac Pyle Hey I am in a very similar situation to you. 19, in college, and my plan is to use some sort of financing from my mom for my first property. I cant qualify for a loan so I may need her to cosign. If I asked my mom to fund a deal a year ago she would tell me to get out of town. Since then I interned at a Property Management company, got my real estate, sold a couple properties and analyse investments for buyers. That being said, I've built up a lot of confidence to buy a property and am able to explain the whole situation to my mom and how one deal is a good investment. Now that she knows I am heavily invested into succeeding in RE and that I have a network of people to help me, she is more comfortable with helping me. Through selling properties I have build up some cash to put a sizable down payment on a house, which will reduce risk on her part, and I may partner with someone else to reduce risk even more. I want to be as responsible as I can with the money.

I don't think it's a bad thing at all, and as you know, 98% of college kids our age are concerned with fortnite and alcohol at this time. If we go down this route we will undoubtedly have to deal with people who tell us we were handed success. But as Elliot said above, smart people learn how to make the most out of their situation and shouldn't be ashamed of it.

@Dennis M. Although did that experience growing up contribute to your drive to succeed in real estate?

@Victor S.

It is a decent deal for a primary. And her equity position is great. Once her emotions settled down she was able to sit down and run some numbers and realize it wasnt the end of the world. She was literally happy to give up 20k because it would relieve some stress. The hardest part of this whole ordeal is learning how to explain to someone their irrational thoughts based on emotions and not facts. She's in a good position so like everyone is saying, she just needs to follow through. When it's all settled she will be well off. Thanks for the comment!

@John Bannister it is leaking from the framing above the windows so I suspect it is something with the window flashing or gutters. We are having an expect check it out and he thinks it's a minor issue as well. Thanks!

@Brit F. She definitely wants the house and I know once everything settled she will be happy. On April 5th we gain access to the new house and my plan was to get the 1 bedroom apt rented out asap to give her income for the holding costs. Other than that I could provide some financial assistance to lighten the burden. As for the repairs on the new house. It's in good condition but the driveway is currently gravel and she would like that paved and the roof although isnt leaking, she would want that replaced. The other major think would be converting a half bath to a full. The rest would be minor paint and some flooring updates. Most of the stuff I can do, she can do, and we know someone who can do it. But when we move in there is nothing that is urgent. It will be nice to be able to move belongings, and pets from the old house to the new house, which will make selling the old one easier.

I will look into the escrow idea and see if that would be beneficial. And if the worse case happens I will try to negotiate a lower earnest money deposit.

Today's update is that we are going to move forward with the new house and be more aggressive with the price of the old house. From the numbers you can see that she has a ton of equity in the current house and after everything has settled she will have a house worth 220-240k that is completely paid off, and has an apartment that can be rented out.

Thanks for your input!

@Brandon Carriere

There was one other offer on the place but I agree we probably could have gotten the deal with a 10k deposit or even 5k. My mistake there.

@Caleb Heimsoth

Yeah it wouldn't be an investment deal. She plans to live in it for the next 5-10 years and I plan to stay there for at least 2-4 more years.