All Forum Posts by: Steve Riester

Updates on the situation as of 05/10 morning.

A new Rehab estimate, still not hard on paper, but looking at what needs repair, 40k liberal

Seller A is willing to do a 30year fixed at 5% for 5 years. If i recall correctly an a seller finance i can get my name on the deed? If so i can justify investing in the property.

If i can get the funds to pay seller B and fund the rehab, im good to go. I as financially ready this time last year but have been helping my mother out until January of this year. Now my reserves are not enough to fund myself.

I make my own hours and i am more than capable of doing over 50% of the work and can act as my own GC if needed.

Also, local rent assessment, per the BP calculator, says $3600 per month for that neighborhood and house. I live 10 minutes from the subject property.

Sent you an email 

 Wow! I'm listening to a BP episode now and they mention Easy Street. I put it on pause and checked the status of my thread and here you are!

I have figured acquiring the whole asset with a DSCR and treating it as a traditional concept is probably the best way to go and let gonof thebowner finance option.

are you guys open to having a discussion? Another broker has found one lender willing to deal sonid like to get two more options to compare.

thanks

The bullet points

Intention is a Buy-Hold / BRRRR

-Lady passes and leaves here home in southern California to 2 women. Seller A and Seller B.

-Seller A is an acquaintance to my Mom. Seller A is willing to meet with me for an Off Market deal before listing.

-I meet and pitch Seller A to do Seller Financing and she is in to it.

-However, now i hear Seller B is money hungry and just wants to sell and get her chunk. (about 215k)

-Unlisted Sale Price: 600k (buyer pays all closing costs)

-Outstanding Loan: 175k (Seller A has been paying this alone since the inheritance, about Aug '22)

-Current Mortgage: 1650/Month (with PITI) on a Variable Rate product through Fargo

-Home needs rehab estimating 75k

-Current Comps show an estimates value after repair of $800k, conservatively.

I only want to do this with lent funds so i assume i can either get a loan for;

Scenario 1

Seller B's cut of $215k + reno costs of $75k

Thats 215 against the mortgage as well so I can then seller-finance through Seller A for the remaining $385K. They pitched 5%, duration is in the air.

I then do the rehab with the 75k and refinance in <12months with my ARV and pay everyone off.

Scenario 2

Or, do I just try to get a private loan for the sale price and the rehab and then refinance under the ARV?

Looking for insights, opinions (and money), including other options i am not aware of.

I have also hunted two different occupants that would be very happy to move in to the home in November (after the rehab) and pay 2900-3000 per month. No hard commitments but it illustrates that the market is open to such a home at such a rate.

Thank you for reading this far!

The bullet points

Intention is a Buy-Hold / BRRRR

-Lady passes and leaves here home in southern California to 2 women. Seller A and Seller B.

-Seller A is an acquaintance to my Mom. Seller A is willing to meet with me for an Off Market deal before listing.

-I meet and pitch Seller A to do Seller Financing and she is in to it.

-However, now i hear Seller B is money hungry and just wants to sell and get her chunk. (about 215k)

-Unlisted Sale Price: 600k (buyer pays all closing costs)

-Outstanding Loan: 175k (Seller A has been paying this alone since the inheritance, about Aug '22)

-Current Mortgage: 1650/Month (with PITI) on a Variable Rate product through Fargo

-Home needs rehab estimating 75k

-Current Comps show an estimates value after repair of $800k, conservatively. 

I only want to do this with lent funds so i assume i can either get a loan for;

Scenario 1

Seller B's cut of $215k + reno costs of $75k

Thats 215 against the mortgage as well so I can then seller-finance through Seller A for the remaining $385K. They pitched 5%, duration is in the air.

I then do the rehab with the 75k and refinance in <12months with my ARV and pay everyone off.

Scenario 2

Or, do I just try to get a private loan for the sale price and the rehab and then refinance under the ARV?

Looking for insights, opinions (and money), including other options i am not aware of.

I have also hunted two different occupants that would be very happy to move in to the home in November (after the rehab) and pay 2900-3000 per month. No hard commitments but it illustrates that the market is open to such a home at such a rate.

Thank you for reading this far!