All Forum Posts by: Rodney Dixon

Hi everyone! Having just recently moved to out of state, I've decided to jump back in the REI life and make a niche business for myself thats based around owner finance deals in my currently new market of Houston, TX. That being said, my current focus is pre-foreclosure opportunities in which I plan on turning into deals and I'm looking for help on accessing the freshest lists of those type of leads.

Whats my options?

Hey guys & gals! I got a transaction idea and I'm looking for some feedback on it. Here it is: 

1. Get a Sub2 deal

2. Close it in a Land Trust w/title transfer

3. Pull out equity later for reinvesting the funds

Any plausibility to this?

Nice play!

 Thanks to all for their share on the subject and Jay I want to single you out on your response and asks you for some guidance on these 2 things:

1). A list of states w/large transactions of owner financing

2). Cost effective methods for reaching leads in those states

I'm currently working on a income producing quadplex deal in Tampa, FL in which I've convinced the seller to carryback 40% of the purchase price. I contacted 2 guys who lend hard money in my market whom through past discussions have stated that they lend up to 70% of the purchase price. When I ran the deal by them and how I was mapping to pull it ofl w/the hm 1st for 70%, have the seller sign a contract to carryback 40% and the difference between the 60% in hard money funds that the seller was actually going to receive and the 70% that the hml was actually funding, I was going to pay all the deal costs(closing fees, points, etc..). 

However, neither guy didn't want to do the deal insisting that I need "skin" in the game. 

So now I'm seeking insight as to why HMLs refuse to allow these creatively structured deals to be deployed?

Loans w/seller 2nds or carrybacks.

Strategy:

1). Leverage hm of 60%-80% toward acquisition w/40%-20% seller carryback for 1yr term while amortizing seller carry back for 15yr monthly piti paymentsw/5yr balloon.

2). Do a refi, secure long term financing and payoff hm.

3). Refi in 5 payoff seller, rinse and repeat.

Could anyone direct me in the path of a HML that closes on creatively structured deals?

I had a guy on standby that I went to earlier this week to pull the trigger w/to only be alarmed that he was flake!

Actually, I was seeking a list of strategies and their variations that will allow me to do deals via the 2 components of the HML funding deals at 65% an any sellers that I come across that are willing to wheel & deal w/a 35% carryback for what I for see as "lump sum now - cash over time - and a lump sum later."

Before I go on my voyage of doing a few deals and then working my up to other facets in RE, I need to know some strategies that will allow me to successfully get into long term buy&hold deals if I have (1)a HML who will fund my deal at 65% of the purchase price and a willing seller that will carry back the remaining 35% in order to close the deal in 5 days?

My exit strategy is refi 12 mos later, payoff HML, continue to pay on seller 2nd for 5-7 yrs, do another refi and cashout seller and then I work towards paying off the long term mortgage.

To all bankers, lenders, and mortgage originators....anyone of your advice's is greatly sought here in this discussion. That said, while I've learned from other investors here on BP to think of the end game 1st and work backwards from there, I need to know this; which one of these strategies will allow me to do a successful refi for long-term buy and hold(if I can qualify):

1). If my residential deal is already structured w/a hard money 1st and a seller 2nd and then I apply for refi to cash out my HML

- Or -

2). If my residential deal has a hard money 1st with a promissary note w/seller for interest only payments until refi occurs in which I payoff my HML and then secure the seller's interest in the property by recording the junior lien after refi is successful

To all that can shed light on what's going to be my best route to take in 2016, I greatly appreciate your time!