All Forum Posts by: Pete Schmidt

Like a standard closing.  Send it to the closing attorney and they will draw it up so the agent gets their commission.  Unless you were trying to do all the transfer/sale without an attorney, which I don’t suggest.  

As long as they own it out right they can transfer the deed to anyone, just signing a few legal documents. However if they have a mortgage, then the only way is for their mortgage to be paid off.

That is my deal as well.  Appears having a lower paying W2 job and a lot of write offs is not off set by a good track record or 848 credit score.  So options I believe are get a partner, pay down some debt (even though all of mine is “good debt” per say), or find another lender who will go off your project and not personal income.  Just be ready for higher rates.  

You try a line of credit or personal loan? See what kind of rates you can get with that. 

Never heard of either, but that CoConstruct looks interesting. I will need to look into that some more. I am using QB now, and that would make keeping track of jobs much easier for sure. 

Doesn’t hurt to ask.  I will ask the seller of every property I’m interested in if they will. Most they can say is no.  If your looking to get into something on the cheaper end that flows great would be mobile homes.  Those things cash flow better than just about anything else around.  However good luck getting anyone to finance them.  If you are young and no kids it may be best for you to find a duplex, tri, or quad to buy and live in.  You should be able to secure financing a lot easier than just a standard investment property and not need as much down.  Then after a year or 2, find another and do it again.  Unfortunately when you have 4 kids like me, the 2/3 bedroom multi family setup does not work so well. Lol. 

For the guys who have been investing with a few different partners on different deals, do you create a new llc for each partnership to put the property with you and that person in, just buy it in both partners names, or something different?  

it really depends on the property and their situation.  Some are just tired of dealing with tenants and don’t need all the money right away.  So for them to finance it for 5 years is not that big of a deal since not only do they get to sell the property and not deal with it, but make a lot more interest than the bank would have given them.  Plus it will be a nice passive income and capital gains won’t kill them like the big lump sum would.  Interest rate can be what ever you agree on.  I offered 5% on my last one and he was good with it  Owner finance Is usually more appealing for owners who have places on the market for a long time or really run down.  

However if they need the cash to relocate or cover some other big debt now, they won’t be interested in financing it for you usually.  So find out what they want and need and work from there. 

Prices are up there for sure, but still out there.   Most of the ones I’m looking at are beat to crap.  I can usually get them cheap because there will be way too much rehab for 99% of the flippers or do it your self people.  Having a repair business and 5 employees helps me keep the labor to a fraction of what it would cost someone who had to hire a GC.  The tricky part is finding deals in decent areas.  A lot of the really cheap ones are not in an area where you will get a decent renter. 

Personally I try to find places out of city limits.  Dealing with city ordinances, code, and appearance boards is a PITA.  As for llc and financing, I ask all for owner finance and then if they go for it they should not have a problem putting it in your llc as long as you are listed as the guarantor.  Then the bank will usually refi it once you show a decent amount of time turning a profit. They big key is coming up with the down payment or a creative way to do so.  

I would suggest owner finance.  I am going to start asking on all the ones I offer on.  They may say no, but if you go in and look like you know what you are doing the they may take it.