All Forum Posts by: Scott Johnson

Good, you're in NC so I can at least help a bit. I attached a screenshot of our Offer To Purchase And Contract that is very clear when it comes to DD money. What you're attempting to due is prove a material breach of the contract because the agent had the incorrect lot size. My advice: Talk to a real estate attorney

Once you pay the DD money, it's all over. That's the seller's money unless they breach the contract. Only an attorney can confirm whether or not they did. This is how people get hosed in an extreme sellers market. When DD starts going up, stuff like this starts to happen.

Best of luck!

Reach out to the Home Buying Guys on Insta or via their web site. They're native to Dallas and could be a great source for deals, @Sean McGrady.

Agreed on both fronts. @Steve Vaughan is correct in that you should check public records for a Deed of Trust and see if you can't reverse engineer how much she owes unless she's willing to show you a statement. If there's a loan on it, seller financing isn't a great option unless you're able to pay it off and her take back the remainder, albeit with a % down.

@Long Dang's idea is solid for collecting more information. More numbers could scare her away, so just provide how much, over how long, and I'd do a 5 year balloon. 5 Year balloons seem to be standard practice for commercial loans and it'll make it more reasonable.

Remember you can't make someone do what they don't want to do. If all else fails, get it under contract at a reasonable price and seek out financing. Leave a margin so you can wholesale the contract if need be. 

Getting a new loan every year doesn't sound like it'd free up too much capital. Assuming a 30 year VA loan with 20% down, a starting balance of $500,000 and an interest rate of 3.75%, you're looking at $9,100.00 paid down in a year. I'm not a CA guru, but from what I do know prices are higher out there and $9,000.00 won't buy much. 

You're thinking the right way, though! Keep it up!

If they're literally trying to have you pay to just SEE the property, I'd tell them to kick rocks. In. a nice way, of course. Plenty more opportunities out there. 

If you're leaning more toward an asset based loan, Kiavi (Formally LendingHome) does a great job. They'll lend on 90% of the contract price and all repairs (not to exceed 70% LTV). Definitely worth starting the convo with them to see if they lend in your area.

Looking to connect with proponents, investors, organizations, and lenders who develop Blue Carbon Sequestration projects in the United States. I dove headlong into my education on the subject since it makes a great deal of sense to me. I'm currently learning about current legislation here in North Carolina and best practices in restoration and sequestration analysis.

• How long have you been in the business? 
• What projects have you done in the past?
• What Certification company certified your credits?
• What got you interested in Blue Carbon Projects?
• What resources did you find most helpful when starting out?

My goal is to begin developing these projects and to specialize in Blue Carbon lands as a broker. Capital obtained through these endeavors will be used to acquire lands and continue building our Blue Carbon Sequestration portfolio, possibly with some Green/White mixed in if the numbers work. Looking forward to connecting with like-minded individuals!

Awesome, @Vinay Kolluru! Yea, it's a great area. I just recorded a neighborhood breakdown last week that'll go live on our Pitt Home Buyers Youtube Channel sometime next week. 

@Aaron F., Kiavi is fantastic! Using them for a majority of our acquisitions. Their online loan platform is easy to navigate and they respond very quickly. Been working with Tyler recently, and have no complaints whatsoever. Highly recommend them! 

Investment Info:

Single-family residence wholesale investment in Farmville.

Purchase price: $27,000
Sale price: $41,000

The owner of Cupelo moved to Michigan with his wife and allowed an old coworker to rent this house. In December 2020, that renter called and told the owner that he needed to leave while the sheriffs were knocking at his door to arrest him for backed child support. We noted that this property had 1 acre of land and was in relatively good shape. We assigned this contract to one of our regular buyers in a couple of weeks!

What made you interested in investing in this type of deal?

There are a ton of investors looking for rural rental properties.

How did you find this deal and how did you negotiate it?

The owner reached out to us after looking at our website. We discussed what he needed to pay off his mortgage and how much he needed to make on it. We structured our offer from there and negotiated it to $27,000.

How did you finance this deal?

The buyer financed the deal.

How did you add value to the deal?

Provided a fast exit for the owner and a great rental for the buyer.

What was the outcome?

A win-win-win situation for eveyone involved.

Lessons learned? Challenges?

I learned how to navigate another county's GIS and noted some of the differences. This is when I learned how to study flood maps and do a deeper analysis of properties. Like Robert Kiyosaki says, real estate has little to do with what you "see". It's what you "don't see" that will make or break a deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence wholesale investment.

Purchase price: $16,500
Sale price: $27,000

This was a legacy lead that came back to us. We made our offer in 2019 and the seller declined it. A year later, she hunts us down at our local farmers market and asks if we still wanted the property! Her aunt had passed away and left this property to her. We got the property under contract and assigned that contract to one of our regular buyers. This is a buyer that we also assist with their rehabs so we can learn.

What made you interested in investing in this type of deal?

Wholesales is a great strategy to shore up capital for investments.

How did you find this deal and how did you negotiate it?

We'd called her FSBO sign originally and walked through in 2019. She declined our offer, hunted us down in 2020 and we consumated the deal.

How did you finance this deal?

Buyer financed

How did you add value to the deal?

No value was added aside from the wholesale itself

What was the outcome?

A successful contract assignment

Lessons learned? Challenges?

I learned that staying out in front of people and following up are critical. You never know when someone is going to change their mind!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No