All Forum Posts by: Dave Passey

I always like good lawyer information!

I would chat with you. I see you are in Missoula as well.

I guess I would wonder how you are getting your cash offer values to put on the postcards. Or are you sending out so few postcards that you are actually calculating it out first? My thought would be that you are potentially setting yourself up for failure because you are either just giving them a low number so they won't call because you have no relationship with them, or they do call because the offer is high and they think their place is bad. You could likely still get some deals in there, but I don't think putting unassessed offers out there is typically a good idea. Makes it hard to make changes to the price later. 

Give us the details! How much were repairs, what does it look like now? What was real profit on this one?

If you don't pay someone more than $600 in a year then I am pretty sure you don't have to have tax info for them. You can essentially call it day labor help and still have it as money expenditures. If you are using the same person then you probably need to set them up as an independent contractor and get a W-9 filled out. It's all on your insurance if they don't have any. 

What is ARV and estimated rehab cost on something like this?

Then possible rents afterward?

I have been working with a developer that has been years in the process of getting developments approved by the city or county. If Missoula wanted to solve the housing crisis, all they would have to do is streamline the permitting process. They make it so difficult that you need to have massive amounts of capital in reserve just for waiting out the permitting process, not even to mention the development.

If you know the person REALLY well, then I have done it in the past where I have taken payment outside of the title company. However, normally the information for you getting paid would be on the assignment contract that you have the end buyer sign. The title company would then distribute the funds directly to you. 

How is this a completed deal?

A balloon payment is pretty normal with seller financing. If you are already planning to do a refinance in the future, then a balloon shouldn't be a problem for you especially if you are buying the deal right.