All Forum Posts by: Paul Crutcher

Hi everyone!

I'm currently looking at a home that was previously on the MLS and failed to close via conventional financing 4x due to deferred maintenance and stubborn sellers possibly.

So going to a bank for financing isn't an option for this home. 

The home currently has a ~$160k seller finance mortgage that the current seller is paying (not sure if they're performing). They did want $60k over the mortgage amount, however I believe it's only worth $20k over. 

So I was thinking of offering to take over paying the note and basically giving the seller a cash sum for the rights to the contract/deed. I haven't heard from the seller yet if I can get a copy of the original contract.

How would I go about this? What attorneys would y'all recommend to help me through this process? 

So I've been working on a deal and I believe I may be able to get it to the closing table with a deep discount.

However, I wanted to purchase it under seller financing for my personal use, but my SO doesn't like the area as much.

The Home has several acres surrounding it that are wooded. The property is in the county, on well and sewer, and needs repairs on basically every major appliance/utility. It's structurally sound but super dated inside.

So this was my strat I was potentially thinking about bringing to the table:

Home is a 3/2/2 on ~10 acres with 9 of 10 acres wooded. Seller Finance with 0 down payment, pay ~$2000 a month for the seller financing, have the balloon payment in 18 months for approximately $250k. Within those 18 months, all major appliances and utilities would be repaired for the home, the land would be cleared, and the home updated to surrounding neighborhood standards. Repair is ~$100k (I can save 50k by diy), and ARV is ~$450k (two neighbors homes have less land that is cleared and 750-1000sqft larger homes valued for $650k). At the Balloon payment, arrange for purchase to be sold to end buyer, and collect 6 figure commission check.

This would probably be the most work I've ever done to get 6 figures, but is it worth it?

I can see risks with putting all this work in, failing to close, and then I'm left with nothing. So there would have to be both protections on my end and protections on theirs to make this a plausible strat. 

What are your thoughts and could I Wholetail this basically? Or should I forego the work entirety and just wholesale the seller financed contract?

 Haha! Yeah I do that. My girlfriend hates it. The last statement is true. For the past three months, my life was very selfishly inclined and I nearly lost everything before Christmas that was important to me that wasn't me. I somehow turned myself around and I'm on track to buy my first house in two months. I hope you're endeavors are going about the same!

 I may not be the best person to ask as I have three businesses and only cold call on the weekend. Your best bet is to niche down with one type of lead source and perfect your cold calling skills. The wolf you feed is the one that thrives.

Ok good.

Yes, I am house hacking a STR. I've looked at a few on the market on the online portals, and they do seem over priced at the moment, so I may consider a BRRR STR house hack depending on the availability off market. I'll have to run the numbers through AirDNA before I set aside some time to look at the listings in person.

Hey everyone!

I've been building on my knowledge for the past two years and finally have a plan to buy a home in February 2022. My goal is to have a multifamily home in a STR market. I'm looking into Galveston, Tx to purchase with a FHA, or 100% financing through my local credit union. With inflation, I've heard that it's best to collect debt secured in assets, but I want to know what y'all think of that statement?

What should I be preparing for with this inflation? 

How would it affect the mindset of the people who are usually interested in renting an AirBNB? 

How else can I hedge against this uncertain market?

Has anyone tried to get financing from a credit union for building an RV park on a residential property?

I'm currently looking at a property that's been on the market for half a year. It's a long and slender property which is perfect for a single street and RV spots. It's already below market value, but I think I can get it even cheaper. 

As far as market viability goes, I need to run the numbers. Since Covid, the closest RV park had 25% or less occupancy for a long time. They're finally up to 50% and the local companies (Dow, Phillips 66, Chevron) are starting to begin large projects. 

The area I'm looking at is super quiet in the county, 45 minutes from previously mentioned companies, 10 minutes from a over sized Kroger's and a great small town. 

I'm currently in communication with the county trying to get an idea if it would even be allowed, then I'll go about building a cost estimate of the build. 

For those who have built RV parks on well and septic, how hard was it? Anything I need to look out for and factor in before pitching this to investors or banks?

Don't mind the hurricanes here on the coast because investing just inland in SE Houston area is also popping like the others. It doesn't have quite the appreciation of Austin and DFW area, but the rents bring in $300-400 cf per door. You'll still have the offer 10k-20k over asking here, but just run the numbers and see if it meets your requirements. You could look at ag exempt status and other benefactors with acreage as acreage is selling crazy high lately in the county. 

Another area would be the galveston market. Plenty of potential for short term rentals, but the city regulations on where one can be is per the address and subdivision. I had a friend purchase a STR there. His realtor stated they couldn't get a house on the corner as a Airbnb... The regulation is strange but still has great potential especially with a multi unit on a single lot. You'll need a realtor who's worked with STR buyers to navigate that market.

Best of luck!

I had a good and long conversation with a loan officer recently trying to get a luxury loan to get an RV. I had a couple of issues getting a loan sadly and couldn't start that business, but the advice she gave is pretty universal. FICO looks for secured loans, so auto and home loans. Those would be where I would start. 

You could take your car title to your bank and request a 50% equity loan of the car or whatever is affordable for a monthly rate for you and build your credit that way. Otherwise, a credit card would be suffice to boost you over the 700 mark. But unsecured loans, such as personal loans and credit cards, aren't looked on as highly as secured loans like the ones aforementioned.

I don't yet have a real estate loan, so I could never reach my highest potential credit score But i'm working to get my dti down through my current service business to get approved for an FHA.

My biggest advice for you is to just be on time with payments and make double payments on months when you can. 

Best of luck!

 It sounds like it's that home out in the Farms.