All Forum Posts by: Russ Draper

Its usually much harder to get owner financing when the market is hot, like it is now.  Why should the owner finance to you when he can get all his money now?  The only answer that makes sense to me is if you are willing to pay a lot more for the property.  So if you can somehow convince them to do 100% owner financing but pay above market, that might be worth doing.  Good luck!

I've never seen a good deal on the MLS/zillow/other unless there is a recession.

I just want to comment, there are so many red flags and yet you're trying to make the deal work.

I would pass on the property, I personally knew someone who had to lift their entire house, excavate their yard, and pour a new foundation.  This was a mix of septic and oil though.  If there is a well this could be big trouble.  The inspectors said they don't know, so its a gamble.

Google?  There are lots of websites selling all sorts of forms, some are even free!

My experience was that I wish I hadn't bought the crappy buildings!  I really only made money because I happened to buy when the market was low and sold when it was high.  Remember: you make money when you buy the property, if its not a good deal don't buy it!

I think that you can file for an easement since the house has been there for so long.  You maybe can file to get the property line moved over.  Of course the best option is to buy that lot, since it likely isn't build-able and isn't worth anything to anyone other than you!  I'd call the town and ask!

You didn't think of something: the bank won't use your down payment for the other buyer.  They will want him to have his own money, they specifically ask if any of the down payment is borrowed.  If he is honest and says yes (as he should) they likely won't give him the loan.

Hard money loans can lend more than the value of the property if they trust the person.  They will want to recover their asset though, more than a bank would!

If you are going to be a hard money lender you should get a very high rate, last time I looked into it the rates were 8% or more plus a 1% fee (or more)!

Being honest, I wouldn't invest in this deal based on the little information I have, you shouldn't either!

I would think the bank would ask you where you got the down payment, and if it wasn't yours then the silent partner should insist on their name being on the mortgage/title to make sure they have ownership!  If they are willing to just give you money without signing a contract that is very risky for them!

Honestly I think that for this first deal the bank is going to insist the loan be in his name, since he is providing the capital.  It might be possible to form a new company and have the loan in the name of the business, but the bank will likely want a personal guarantee anyway.  He is going to have some risk to get the big loan, that's why the bank is lending to you!  Unless you know someone else that will give you 80% of the money for no risk on your side!

I would think it would fall under that $250/500k single/married rule, but for something like this I would talk to a CPA when you file your taxes to be sure.