All Forum Posts by: Renard Miller

Thanks, Joseph. That is a really helpful walkthrough. In this instance, the seller is getting older and just wants out of the property that has been in his family for about 50 years. He also happens to be the listing agent. He seems most interested in bringing his relationship with the property to a close inside of 10 years. He mentioned something like a 30 year amortization with a 7 year call. I think there is some give there, but that's where his head is. We will definitely use your approach to crafting the three options. 

My team is looking at a five unit property with an asking price of $266,000. We would like to present 3-5 owner-financing choices/alternatives for him to select from.

Does anyone have experience coming up with choices that vary along term, interest rate, purchase price, percentage down, etc.? Any other variables we should consider? Each of these variables seem fairly flexible, so we are just trying to make sure our offer is in line with seller-financing norms.

For reference, the total rental income is ~$3500 and we are fairly flexible in how much we can put down, though less is obviously better for leverage.

Any thoughts on how best to structure the alternatives?

My team is looking at a five unit property with an asking price of $266,000. We would like to present 3-5 owner-financing choices/alternatives for him to select from.

Does anyone have experience coming up with choices that vary along term, interest rate, purchase price, percentage down, etc.? Any other variables we should consider? Each of these variables seem fairly flexible, so we are just trying to make sure our offer is in line with seller-financing norms.

For reference, the total rental income is ~$3500 and we are fairly flexible in how much we can put down, though less is obviously better for leverage.

Any thoughts on how best to structure the alternatives? 

Originally posted by @Alan Rohrer:

@Renard Miller

A few follow up questions that might help you find a great fit here on BiggerPockets:

1) Are you solely a buy & hold investor?

2) You say some others you have talked to haven't been a "good fit". What are you looking for in your tax advisor?

3) Are you open to working with someone remotely if they are a Real Estate savvy CPA/accountant?

1. Yes, solely buy and hold. 

2. Just looking for something more personal than the option we started with. Starting with a phone call instead of a web form, for instance. 

3. Definitely open to working with someone remotely. Currently in the DC area, but relocating to California in the new future. All of the rental units are in Hampton Roads, VA.

My wife and I need a CPA with real estate expertise. We have explored a few options, but we haven't found a good fit yet. We currently have 18 units, so we need someone for whom that is not too small a number to be bothered. There are a few other complications with our tax situation (business ownership, equity compensation, etc.), so general expertise would be appreciated. Does anyone have any good recommendations? 

I usually find that knowledgeable people are the best source. Agents, other investors, etc. But if you are just looking for a quick online source to gather more data points, here are a couple: https://www.padmapper.com https://www.rentometer.com Hope that helps!

@Joe Splitrock  @Patrick Liska and @Nolan M. definitely helpful advice. I will make sure whatever the lay of the land going forward is, it is all in writing and the tenants are signed off

@Patti Robertson definitely lots of helpful lessons learned. Good that it's not a more expensive mistake. I will definitely think more carefully about what all needs to be in writing and understood ahead of time in the future.

@Ben Higginbotham Seems like a reasonable summation. Thanks. 

@Wayne Brooks It definitely is if I accept that it is. Just wanted to see what my options might be. Thank you for your contribution. Cheers!

Thanks @Todd Dexheimer. An escrow account would be a good solution if he's unwilling to just offer some sort of concession.