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I'm looking into possibly purchasing an ocean front property and either selling it as a time share by week, or perhaps in 1/5 or 1/7 fractions for people who want ownership interest, but like normal familes only use a property for 3 - 5 weeks a year. With option 1, i could pay off the mortgage, keep the premium price and the spread over the maintainence costs - with option 2, you can "seller finance" the buyers, and earn a premium interest rate over your mortgage rate, and actually be able to loan to the buyers. For Example.

Buy a $700k house at 6%. Example mortgage $4000 - all other costs are split between the buyers. Taxes, HOA, Insurance, etc.

Sell 7 fractions of the house for $135k each furnished at a seller financed 6.5%.

I realize the potential carrying costs to find 7 buyers could be great. But with well thought out marketing... you can give the opportunity for people to own a $700k quality house for $135k for the only amount of time they are going to use it for anyway...

Some RE Agents will list the fractional ownership properties on MLS as well. If all goes well, i'll get my liciense and eliminate 3% of the cost as well.

Any thoughts?

The problem with that is that the seller also has to "think creatively" with you. Not many that will do that in a normal or hot market.

I don't believe they do on investment properties.

One of the things that is stopping me from quitting my full time job is being able to finance my future property acquisitions. Can people share some creative financing options investors that have great credit, but don't necessarily want to outlay a lot of cash?

My impression is, in order to do a "stated income" loan on an investment property, no matter how great your credit is, is that you need a minimum of 10% down? Besides seller assists/concessions which the max's are 3% in PA and 6% in NJ, what are other qays to recover acquisition costs.

I love to get great deals and maxing out seller assists, but i'm trying to acquire more and more properties. With positive cash flows between $500-$1000 a month, it is hard to re-coup on a property that is $800k (even if it is worth $1MM). Am I looking to short term?

I like to acquire my rental properties with little to nothing down in which i have done with a few of my primary mortgages.

Any ideas would be great!

One of the things that is stopping me from quitting my full time job is being able to finance my future property acquisitions. Can people share some creative financing options investors that have great credit, but don't necessarily want to outlay a lot of cash?

My impression is, in order to do a "stated income" loan on an investment property, no matter how great your credit is, is that you need a minimum of 10% down? Besides seller assists/concessions which the max's are 3% in PA and 6% in NJ, what are other qays to recover acquisition costs.

I love to get great deals and maxing out seller assists, but i'm trying to acquire more and more properties. With positive cash flows between $500-$1000 a month, it is hard to re-coup on a property that is $800k (even if it is worth $1MM). Am I looking to short term?

I like to acquire my rental properties with little to nothing down in which i have done with a few of my primary mortgages.

Any ideas would be great!

Hello all,

Thank you for all your replies. I'll do my best to write back to all of your questions.

SharedSynergy: What do you know about fractional ownership development? How far along have you gotten in your research and so forth. Do you know any contacts in this field?

Noobdog: The HELOC's are necessary, because in my world of investing in properties in the range of $250 - $600k, investment property loans require at least a 10% down payment plus closing costs etc. That is a lot of cash needed, and not willing to part with. My rule has always been that if you can have a rate of return higher than that of you can borrow, why not borrow as much as you can as long as your FICO and so forth are in check? Therefore I use HELOC's on existing properties (while maintaining positive cash flow on each), to fund future investments. My earned income through the corporate salary goes through quality of life for me and my significant other. I also have the mindset of enjoying the salary and money I make. I am one of the people that will have a few extra trust-worthy employees so i won't have to handle as much so i will be able to enjoy life.

Also, i am not sure what you mean by OPM? I am not up to date on internet abbreviations quite yet :)

Hello all,

My name is John and i'm a 26 year old investor from Philadelphia, PA. I currently own 4 rental properties, and i'm trying to take it full time between creating value through getting "deals" and creating HELOCs for investment capital. rental income, vacation rentals (currently looking at Atlantic City/Brigantine are), foreclosures (though i don't really know much) timeshare/fractional ownership through owner (me) financing and luxury condo property management. Currently manage 2 3BR condo properties in Four Seasons/Jackson Hole and 1 more upcoming in Temenos, Anguilla (St. Regis). These luxury properties like St. Regis and Fourseasons only give the owner (after all the fees) about 39% - 50% of their rental income - their needs to be a better solution for that.

I currently work for a top 5 bank in their Corporate Investment Banking group, and i'm looking to leave to give myself the freedom to travel and work on my own schedule. (Leaving for vacation tomorrow to Colorado for a ski trip, so I will not respond to any replies for a while!). I also want the ability to work at home and help raise my future kids (plus you can write off a big portion of the house with home based businesses).

I'm here to meet other investors in the area, to gain support to quit my full time large income banking job and take this full time, and to have a support group of very knowledgable investors to work on deals, financing, ideas together.

Please recommend other great websites for real estate and investor groups1

Please always feel free to contact me, because all this above is my true passion, as you may be able to see.

John

Hello all,

My name is John and i'm a 26 year old investor from Philadelphia, PA. I currently own 4 rental properties, and i'm trying to take it full time between creating value through getting "deals" and creating HELOCs for investment capital. rental income, vacation rentals (currently looking at Atlantic City/Brigantine are), foreclosures (though i don't really know much) timeshare/fractional ownership through owner (me) financing and luxury condo property management. Currently manage 2 3BR condo properties in Four Seasons/Jackson Hole and 1 more upcoming in Temenos, Anguilla (St. Regis). These luxury properties like St. Regis and Fourseasons only give the owner (after all the fees) about 39% - 50% of their rental income - their needs to be a better solution for that.

I currently work for a top 5 bank in their Corporate Investment Banking group, and i'm looking to leave to give myself the freedom to travel and work on my own schedule. (Leaving for vacation tomorrow to Colorado for a ski trip, so I will not respond to any replies for a while!). I also want the ability to work at home and help raise my future kids (plus you can write off a big portion of the house with home based businesses).

I'm here to meet other investors in the area, to gain support to quit my full time large income banking job and take this full time, and to have a support group of very knowledgable investors to work on deals, financing, ideas together.

Please recommend other great websites for real estate and investor groups1

Please always feel free to contact me, because all this above is my true passion, as you may be able to see.

John
JSeckel305@gmail(deleteforspam).com