All Forum Posts by: Spencer Cornelia

@Grant Rothenburger great idea, didn't even consider it.  Did you have a recommendation for how I can go about finding a real estate lawyer who can handle something like this.

@Tom S. I mentioned a balloon payment to the seller as a common practice in seller financed scenarios last night on the phone since this seems like such a home run I'm hesitantly worried lol (the agreement is 30 year amortization at this moment).

$1k not bad.  That's around what I'm expecting.  I really just need to get the contract written.

Thanks Adam.  Do you mind PM'ing the contract over?  Also thanks for suggestion on how to pay, haven't thought that through yet.

Should have added above: the numbers fit the criteria I'm looking for.  Everything about the property is solid.  I'm asking in regards to the process of 'officially' buying the property.

Hey community,

I have a verbal agreement with a seller to buy his property with seller financing.  This is my first deal with seller financing so I would like to know if there's anything I'm missing.  

Details:

- Multifamily: 4plex

- Purchase price: $260k

- Down Payment: $20k

- Interest Rate: 5% amortized over 30 years.

1.  See the insides of property myself.

2.  Hire an inspector.

3.  Hire a lawyer

4.  Write out contract with lawyer

5.  Send seller the contract

6.  Contract gets signed by both parties

7.  I go to a title company and claim the property is mine?? (a little clueless on this step)

8.  Property is mine?

Am I missing anything?  Is my order of operations valid?  Anyone have experience with seller financed deals.

I learned how to House Hack from BP, which has been my only deal thus far.  It was one year ago and I've received around $7k from my roommate!  But BP did help me look for deals and my condo has increased roughly $25k in one year so I can add that amount as well.

@Dave Foster I was reading a few BP posts/comments about paying income taxes on rental properties. I believe I misread because a thought popped into my mind that you could essentially count the down payment on the next property as an expense. Since the expense (down payment and associated costs) would be lower than your NOI from first property, you would essentially not need to pay income taxes.

Quick thought: could a group of investors team up and combine their yearly net rental income into paying for a new property?

Example: a group of 5 investors each net $5k every year in rental income.  After year one, they combine their total $25k into a down payment for another property.  After year two, they combine their $30k ($5k + $1k from new property each) and buy another property.  And so on...

From what I've read, they would not be paying any income tax on the $5k they earned because of buying the new property.  And they are also expanding at a much faster pace.  Is this a dumb idea?  Why / why not?

@Edward B. and @Romeo Youkhana thank you for the quick response!

Off I go to buy another property haha

Hey BP forum,

I'm looking to get a HELOC on an owner-occupied primary residence (my condo). Wells Fargo mentioned that they offer up to 85% LTV on the property. If I were to get 85% LTV, would I then need to pay PMI because I am borrowing 85%?