All Forum Posts by: Stanley J Okazaki

 Thank you Daniel

 I have no problem with docusign. I don't like dotloop because of the fact that I have to line by line, manually create a template for all my documents. 

I've used docusign and dotloop in the past. Any other suggestions that make life that much easier?

Just spoke to a Hard Money Lender and apparently due to the flooding, the gov. put restrictions on hard money lenders ability to lend in certain counties throughout TX that have a certain "zoning" from FEMA because they were flooded. From what he told me, they can't lend in these certain counties until the FEMA zoning is lifted.

Where can one find out more about this zoning? How long would it take for this zoning to be lifted?

I suck at numbers, so I made up some for a hypothetical subject-to deal to sharpen up. Can you experienced investors please critique my work? My hypothetical plan is to take over the loan> get a tenant in> cashflow

Sellers loan terms 

• P.P. $200,000 
• Loan Amount $180,000 (20% DP) 
• 5% interest for 30 years.

Property Data

• Current Market Value $200,000
• Tax Assessed Value $174,390
• Tax Rate 2.3%
• Current Market Rents $1500

Seller made first 5 years of payments (The amount paid off in these 5 years shouldn't factor into my cash flow calculations, correct?)

My Calculations

P&I - $966 Monthly 

Taxes - $334.24

Insurance - $80 (I've read to figure $35 for every $100,000?)

$966 + 334.24 + $80 = $1380.24 (PITI) Monthly

Market Rent $1500 (-)  Monthly Mortgage $1380.24 = $119.76 (potential cash flow) not including vacancy factor, repairs, capex, hoa fees, additional flood insurance. 

Verdict:  NO DEAL

 you answered my question...thank you!

Bought a property using seller financing.

It's cash flowing $100 a month.

Can I or can I not use the income from this property to qualify for a bank loan?

My thinking is that because the purchase of a ownr fin. property doesn't show up on my credit, banks won't look at it as legitimate income.

Thanks for posting this @Charles Patterson, a lot to learn here. 

Maybe you can help me with a potential situation that I'm having trouble working out due to my lack of experience. 

Say I find a deal, the seller and I come to agreeable terms. 

The property is a single family home, currently unoccupied. Upon closing , my plan is to get a tenant into the property & use the rents to pay off the seller every month.  Worse case scenario, for some reason I fall behind on the payments to the seller and they take recourse (foreclose). The tenant is still in the property. 

My concern is that if the seller chooses to kick the tenant out after foreclosing on me , would the tenant have any recourse against me? Or would/ should I protect myself from that liability with some sort of disclosure in the lease agreement? 

I wouldn't go as far as to say extinct, but likely more of an alternative than they have been in the past (more so on the seller rep. side..although I suppose one side directly affects the other) . I don't think the buyers agents are going anywhere any time soon. Agents who represent sellers, I feel, have more to worry about with the tech surge. Frankly, when you get up to a certain price range the commission a seller has to pay out to sell their home is kind of outrageous. Especially when it's a sellers market and the homes are basically selling themselves...

@Andrew Johnson Thanks Andrew. How long did it take you (or will it take you) to get to the point where you felt comfortable letting a PM company handle everything? I'm sure there's some "breaking in time"...

@Linda S. can you elaborate more on automatic systems please? My father has his tenants deposit the rent directly into a checking account...how can rent deposits be more automatic than this? 

so a couple of $100 bucks to incentivize the tenant into staying, thus reducing turn over costs & saving time. Not a bad idea...thanks for the tip!