All Forum Posts by: Sipo Thao

Hi,

I purchased a home under market value using 3rd party financing with my local bank. 5 year ARM loan.

My question:
Is the bank opposed to me selling the home 3 months after purchasing.  Basically using their loan as a fix/flip.  I just don't want to have a hard time getting another loan with them with future deals.

@glenn yes i picked up 4 houses last year and a 4plex. combined appraisals of them are 635k. with 316k in loans against them.  i was just thinking of what my option are in the future. i will probably cash out refi on them because it fits my strategy  

@Glenn McCroreyundefined

Wow great advice. Thanks Shane

Hey guys!

So I own this property near Downtown Fort Worth in Texas.  C class neighborhood decent appreciation, 1998 brick build.

I was just thinking about what I should do when my ARM adjusts in 5 years. Here are the details:
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Purchase price: 58k
Loan from bank: 5 ARM, 55K, 5.25% interest, 15 year amort.
I have my initial 3k cash invested, plus 6k in repairs.
Appraised value: $105k.
What i think it will sell for right now in our market: $115k
I currently have a renter in it for $1100/month ($380/month cashflow)

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Exit 1: Sell the home in 5 years on the market.
Exit 2: Bring on a friend and cash out refinance into 30 year fixed.

Exit 3: Seller Finance.... So i really want to do something like this and want to know your thoughts.  I figure by year 5 my loan will be at $40k.  I can save my cashflow which will be $22800 and use it to pay off my lien alongside the buyers down payment.

Loan balance in 5 years: $40k

Cashflow saved in 5 years: $22k.

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Sale price $125k
Buyers down payment $10k
My interest rate: i am not sure
My Amortization: Not sure either
Prepayment penalty: maybe have this a high number to keep the buyer from refi'ing??

So I just want to know if it will be viable to seller finance this home, of course i will have to put some more cash into the deal to pay off my original loan.  But it shouldnt be a problem.

I was in a rush and paid extra to use Legalzoom, i think they have a sister website somewhere and its a little cheaper.

I tried and tried a couple different places and could not get any leads. I know there are alot of variables but finally figured out something that works for my area. Have 3 homes under contract from my July mailers!

If we can close on these three homes it will total 9 units for this year!  Best $1500 I have ever spent.

I could possibly give you guys a hand if you are having trouble with mailers, but just know that YMMV.  Just send me a pm

Hey guys, Still a newbie but I just closed on 2 homes this week.

Property #2: Found through calling rental property landlords.  Finally got a yes after 2 days of calling.  It is a rich old lady who doesn't wanna deal with realtors and just wanted a cash buyer, it was fate!

I went over the same day to look at it, told her ill take it.  And a week later we closed.

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Purchase Price: $45k

Rehab: $7k

ARV: $105k

Rents: $1000/month

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This deal had to be purchased with all cash.  I called my local bank the same day of closing and let him know im buying a home, he offered a Cash-out Refinance.  The first time i heard of a COR was about 2 months ago on a podcast...did not know it was such a common term. 

He said they will give me a $52k lien on the property, 5% 20 year amort!! Which means I will have no money down in the deal!!  Im not here to brag, if you guys have any questions just pm me or post up.

Thank you BP for all the help!  I just wanna let you guys know that this really works!  I now have a 4 plex and 2 homes in under 6 months.  I have already met my goal of 5 units this year so I will raise the bar to 10 units this year, and 20 units next year.

So i ran into a local landlord last night while walking around with the wife.  I was so excited about only putting $2000 in my current deal that I told this landlord all about it.

...he offered to seller finance me 3 of his duplexes $155k each, 7%, 15 year amort and I cannot pay him off early.  

My questions is...can i turn around and seller finance this to someone else??  Do i just need to make sure we don't have a due on sale clause in the contract?

Yes, the bp calculator says it will cashflow around $560/month.  I found this deal by driving around and chit-chatting with construction workers.

Math: 

Purchase $55k, Closing $2500 = $57,500

Loan = $56k

Out of pocket = $1500  

Am I looking at this wrong??  If buying a home is this cheap and easy...then why didnt i start when i was 16 years old with $1500...