All Forum Posts by: Mike P.

Fred, You're right, wholesaling is a lot safer and the best way to go for what I'm trying to accomplish. I hadn't researched wholesaling until just now because you brought it up. I wonder if it could help me out with a prior deal I had to pass up this morning.

The sellers house is owned free and clear, she is selling due to a divorce and is very motivated. We agreed to terms for seller financing but then she brought up the issue of a $12k tax lien on the property. The lien made me terminate the deal.

Would it be possible to get this $47,000 SFR under contract for a $10k-$12k discount then sell the contract to an investor? This is a turnkey rental with tenants in place. The tenants are family friends and only pay $500 and they don't expect to be offered such rates once it's sold, the place could go for $700... a 10%+ CAP rate

Thanks Dean, I'll make sure I get that done. Would this be a dual closing at the title company? The original seller in one room, the end buyer in another?

What problem could come of this? You might not find a buyer but you could mitigate that risk by making sure the property is something that will move quick in your area before you get into it. Another exit strategy might be needed and the seller won't appreciate your inability to sell as quickly as you promised. Another problem is that a bank might not allow a refinance before the note comes due.

I've been hearing a couple gurus on Youtube talk about approaching home buyers in need of quick cash and ready to sell now about seller financing. You explain what it is, the benefits and the risks. I've gone this far but haven't had a chance to close anything yet, I just started talking to sellers last week... As stated, most of these sellers want cash right now and with seller financing that's not possible unless I could offer a down payment, and I can't offer much.

The gurus strategy states that you will tell the seller that you can sell their property quick using a wrap around seller finance mortgage thus getting the original seller the money... quickly. To do this you'd need to have a list of buyers or be able to market through various mediums that seller financing is available to anyone that can't get traditional financing. I believe a Lease Option is another exit strategy in this operation.

I've been looking up local title companies in the area and plan on interviewing them this coming week to see if they can make this happen on short notice and repeatedly. I've also stuffed 50 yellow letter envelopes to send to addresses I've found on Realtor.com.

This sounds like a sure thing to me but I'm just a newbie. Is this legit?

Thanks for all the help. I've decided to pass this one up.

Thanks Josh, I hadn't thought of HML or a private loan yet, something to consider. I wonder if she would accept $35,000 instead of $45,000 due to the $10,000 tax lien? That could be a great deal, right? I would just take over the payments to the tax service but I would get a deeply discounted rental too.

I'm trying to buy this single family home through seller financing, this would be my first investment property deal. Renters are already in place, home is turnkey except for new carpet that the seller will put in. I spoke with the seller today and came to an agreement on terms. We have one issue that I can't get around though.

She owns the home free and clear but owes 10,000 to the local tax service, she is on a payment plan with them. I asked her to take out a second mortgage to pay off the taxes and that she would get the money back once I refinanced 12-24 months from closing. She can't qualify because she already got a new mortgage and is now unemployed. Her budget is so tight that she has to have the income from the renter to make the installment payment on the back taxes.

She need money now and I can't offer her much more then $1,000 down. I can't think of a way to make this work.

That's a great idea William, my wife won't have any of it though LOL. I'm looking at seller financing and "subject to" and what all that involves.

Thanks everyone! Brandon, I'm looking for a single family home around $50,000 with a CAP rate of 10% that's close to my house. I'm kind of looking for a turn key rental or as close to turn key as you can get at this purchase price. I'd also like to get instant equity on the deal.

Hello from Pittsburgh!

I've been recruiting for the military for the past 6 years, trying to find other ways to make a living. My RE Investing experience is nill. I've been researching for a month about different entry and exit strategies and how to evaluate deals. I'm hoping to close on a buy and hold rental this summer to get my feet wet and see what happens. My biggest obstacle right now seems to be finding hard money lenders or other ways to finance with almost nothing down.

Mike