All Forum Posts by: Sean Salandy

@anthony dooley When evaluating an offer price, would you take into consideration the potential for additional income gained once the empty lots are filled or would you strictly go by the current income and expenses? Because if he was to purchase the property, on day one he would not be operating at full potential and it would cost additional money to bring more houses into the empty lots. Would those initial expenses factor into lowering the offer price?

@Russell Holmes Thanks for your response. That is exactly what I wanted to know. I wasn't sure if an agent would be reluctant to put in an offer on a deal like this without knowing where they would be getting their money but this makes sense.

If I wanted to structure a deal to buy a MLS listed property and it is an owner financed deal, how would the realtor make their commission? Would it come from the down payment that I negotiate with the seller/seller's agent? In that case I'm assuming the down payment would have to be enough to cover the commission(s).

Thanks in advance for your help.

@Steve Vaughan @Brandon Sturgill Thank you for all of the information. Your responses have been very detailed. @Steve Vaughan the potential deal is from a response to a mailing. 

@Brandon Sturgill If the seller owns the property free and clear and I set up owner financing with them, wouldn’t I be the owner if I took title since the current owner would simply act as the bank? It would just be for a shorter time period but I believe it would be similar to what you did in your example earlier. The difference is the owner in your example held the mortgage for 12 years, I would be looking for a 6-12 month balloon while the house is being rehabbed and flipped. I’m not sure if I’m misunderstanding the strategy. 

Thanks for the response @Brandon Sturgill I may also consider holding as a rental but the numbers would likely work better as a fix and flip.  So that’s why I was considering owner finance as an option to get in there and quickly fix what’s needed and put it on the market. 

How would I go about structuring a seller finance deal for a flip? I know the terms would depend on the sellers situation but I guess I’m looking for an example of what one would look like. So for a house valued at $160k with minimal work needed (15k). Home is owned free and clear and seller has no immediate need for cash. With a HM loan, I would need to offer lower but I might be able to offer a little more if it is seller financed for a short period of time until it is flipped. Would it be an interest only loan? What is a typical interest rate and down payment in this scenario? Any thoughts? Thanks.

Does anyone have experience buying a property with a cesspool. Are they allowed anymore or do they need to be removed? I know they are different from a septic system but I don't know much more about them.

Just following up to see if anyone has an opinion. Thanks again.

After coming to an agreement with a seller to purchase property, what steps and documents would you need to have in place. I know this may vary depending on the deal structure (purchase, seller financing, subject-to). I’m just trying to make sure everything is in order and a step or document isn’t skipped since an agent would not be involved. For example, do you begin with: * A written offer * A contract * Contact a Title Company * Schedule Inspections * Contact a Surveyor * etc Thanks for your help.