All Forum Posts by: Michael Pilarski

Hi All, I have a property that has more than doubled in value since I bought it. I still owe the bank on the note (conventional mortgage). I am thinking of selling the property and want to know how I could structure the sale so I could pay off what I owe and then carry the note. Ex. I owe 65,000 on the note Property is actually worth 200,000 I'd ask 225,000 to negotiate with buyer My thought to do this myself would be to ask the buyer to put down a deposit of 65,000. I'd pay off what I owe. I would then create a note (not sure how to do this) that I would hold, allowing the buyer to pay monthly. After 1-3 years have a balloon payment requiring the note to be paid off. 1st question, does this sound reasonable? 2nd, how do you decide what the monthly payments are and does the entire payment go toward the note or can it be structured like a regular mortgage to where a portion would go toward the note and the other part goes toward interest? 3rd, if this is possible, who would I need to talk to and get this set up creating the note and an amortization schedule? Any input or feedback is greatly appreciated.

@Dave Nacco Thanks for your reply, hopefully some others will chime in here.

I was on a webinar given by the CEO of Connected Investors and they were pushing the sale off an interesting app called PiN. The app finds Off-market properties (Zombie Properties, Vacant Properties, Pre-foreclosure, Bank Owned, Court House, etc.). The app gives all sorts of info like last sale price, ARV, it includes owner contact info among a few other things. I was wondering if anyone has come across this and bought the app, if you purchased it, and what do you think of it and do you think it's worth it?

Ed Lee I'm with Dale Osborn on this. I would leave it where its at in the detahced garage. If you were to move it and put it in the closet how long based on your rent would it take to make that money back from the change? How much more rent do you think you'd be able to get with this change and the updates? If I were a renter, just having a washer and dryer available if a huge plus. I wouldn't care where its at.

Jenkins Ramon Thanks again, but after researching it. That is not the one I was suggesting (it is a good book though and highly recomended) but I was referring to Brandon Turner e-book 7 Years to 7 Figure Wealth. Its a very good strategy.

Jenkins Ramon Thanks for the info! Sorry about the typo.

Todd T You are in an awesome position. I wish I was in your position when I was 30. Like Brandon Turner said read all you can and John T makes a great point of learning your market and having multiple income streams. I would suggest getting involved in your local real estate investor club and get to know people. This may help you narrow done your focus as to where you'd like to start investing. You may also want to look into becoming a Hard Money lender since you already have the reserves and will be able to loan out more money each year. Having a goal of 5 years is great and you may want to look up "7 Years to & Figure Wealth" I can't remember who wrote it, but they are on this forum and contribute articles on here as well.

Don Hines congrats on finding a contractor you like and hopefully will be able to work with in the future. Finding a good contractor is is one of a real estate investors best team members.

Rob K You present an interesting scenario. I'm curious to see how everyone responds. I don't really see an issue with either scenario and I'm sure the borrowers would just want to be out of the situation and you give them an option to do that.

Jeanette J. I gotcha. With both of them liable for the rent and on the lease, if something like that were to occur at least eviction and jusgement would be a lot easier. I agree with Brian Hoyt, Steve Babiak, Mark H., and basically everyone else. Run the check, its cheap insurance to cya. I hope it goes well for you. Good luck!