All Forum Posts by: Beth Anderson

Hi James,

We are looking for our first house hack as well. 2 months ago, I would have been excited to get into any good multi-family with conventional financing, but in the last couple weeks, I have been learning a lot about creative financing options such as seller financing and subject to. I don't believe I would buy even a great deal with conventional financing now. The numbers are just so much better for both me and the seller through creative financing. This might be something you want to look into. I'm currently going through Pace Morby's book and video companion guide from the Bigger Pockets Store. Fantastic resource! 

Blessings on your journey!

Beth

Thank you for your genuine concern, everyone! I have so much to learn!!!

Beth

I am so excited about what I've been learning from Pace. I'm consuming his content as fast as I can. I have purchased his book bundle from Bigger pockets, watched all of his podcasts on here, and I am so amazed! I have been stuck in a rut of thinking that we have to buy our first deal, a house hack, with traditional financing. I just realized tonight that if I can get a place on seller financing or subto, I don't HAVE to move my family into a multi-family for one year before we can move on and move up! So many doors are open to me now!! But I do have so many questions. Can anyone help me with these? I know I will find answers if I keep reading and exploring, but I have a potential deal going right now, so I need the answers sooner rather than later.

1. If I buy a place on seller finance and it needs rehab, where do I get the money for that rehab and how do I pay it back?

2. Should I still get a home inspection before I buy?

3. How do I find a title company that will know how to handle seller finance or subto?

Thank you for any advice! 

Beth

 Thank you!!! I am trying to figure out how to be there. I'm having trouble getting a babysitter. I appreciate the information!

Beth

 Thank you, Alecia! I was just talking to my husband about this: getting into our first property is probably the most important step. One of the big questions is how do we finance it. We are pre-qualified from two lenders, but we don't have cash for a down payment or even much in closing costs. If the seller is willing to do seller financing, that seems like a much better solution than doing a USDA loan, but is it really? What if we need to borrow money to do some rehab before we move in???

I have so many questions!

So far I have sent out 85 letters to absentee homeowners and distressed properties. Today I got my first phone call!! I'm feeling very overwhelmed! I've been studying my butt off, but now that it's happening, I feel lost. Here are the pertinent facts:

We are looking for a multi-family house hack to start with. (There is myself, my husband, and our 4 year old daughter.)

The seller is 70 years old and is ready to be done being a landlord.

The duplex is right in our target area. It looks in pretty good shape from the outside. The owner really likes one of the tenants but doesn't care about the other. (He is going to tell the ones he likes that he is selling and ask if they want to buy it before we proceed any further.) He has been seriously undercharging the tenants, and he knows it, but felt it was better to keep great and decent tenants in there than to raise the rent.

He doesn't have a number in mind. He had only played with the idea of selling it before he got my letter. He's going to look at numbers. He wants to talk to his lawyer before considering the idea of seller financing. (I told him we have other options, but I would rather that he gets to make the profit instead of the bank.) We are going to touch base in a day or two.

I have run the numbers on the Brrrr calculator, but have ZERO confidence that my guesstimate about rehab costs are accurate. Or ARV, or purchase price.... etc.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

 Thank you! Very practical and helpful!

 Thank you, I was thinking along those lines. Do you have a basic set of questions that help you narrow in on what the seller needs and wants?

Just sent the first 17 letters to the owners of distressed properties on my long list. Feels good to have finally taken action!! 

But now what??? What do I say when someone finally calls or emails? I have an idea, but I'm hoping for details. Please give me some resources of videos, books, blogs, etc. What are the next steps?

A little context: I am searching for our first deal. We are looking for a house hack for my family as an entry into real estate investment. If someone responds to my letters, and we can't use the place ourselves, I'd like to wholesale it if I can find a buyer.

Thank you!

Thank you, Anthony! We have decided to keep looking. I'll keep my eye on it though, in case the seller comes down a lot in price. We have a 4 year old daughter, so some of our creative options are limited in order to keep her safe.