All Forum Posts by: Brandon W.

What are you needing help with?

I am thinking about finding properties and negotiating the price down by 10K or 20K by offering cash for the deal. If the owner is willing to drop the price that much I will go to a private investor and bring them the deal in return they will sell me back the deal at a little less than market value on terms of them owner financing the whole loan amount and pay closing costs. I pay absolutely nothing upfront. So they make money on the sell and on the length of the loan. Plus I will pay a higher interest rate to them and by owner financing they will limit there tax burden.

I think this is a good idea ( or a win/win for the investor and I )  but I am very new to this industry and I am sure there is a lot of holes or flaws in my idea so any advice would be GREATLY appreciated.

Thank You BP community.....

@Darren Budahn

I appreciate you reaching out to give me some help. I would rather not live in the unit if I don't have to. For my current situation it would be more advantageous if I didn't. If I need to I will and I will definitely use your advise and go check out the FHA Loan.

Thank You again for your help.

@Nate T.

Thank you for helping me to understand the Dodd Frank Act. When I read it I thought it said it applies to Owner Financing and there were a lot of regulations

http://www.biggerpockets.com/blogs/3/blog_posts/39...

I would rather not live in one of the units if I can arrange it that way I think for my situation it would be more beneficial that way. I am glad to hear its not uncommon to pay more for owner financing. I know I'll have to pay more anyways it being my first project. Thank you again for your help.

@Richard C.

Thank you for taking a step back for me. That was exactly what I was wondering. I have heard for someone getting there first property its okay to pay a little more if the owner is willing to owner finance. What do you think? I know by paying more that will change the equity, cash flow, and cash on cash return but what choice does someone have with no money right??

But I just found out that the seller doing an owner financing is under or subject to the Dodd Frank Act which will make it hard for the seller to do an owner financing with me anyways.

Thank you again for reaching out to help me..

@Brian Gibbons

Excellent advise, I have never heard anyone talk about the rules or regulations someone is under who does and Owner Financing transaction. I never knew there was so many regulations the Owner has to follow and has to use third-party companies to check me out.

My credit is excellent my income is extremely low almost none right now my debt is also very low. But all the things I've read I was under the impression I could have someone do an owner financing (and I had the down Payment) on a 4 plex with 3 units rented out and I live in the fourth and that would suffice to show I can cover the mortgage payment as long as the numbers reflected that once all thing were plugged in like the NOI SUBTRACT THE MONTHLY MORTGAGE and if I am left with enough CASH FLOW then this would reflect I am more than capable of handling the owner financing but the Dodd Frank Act shows different unless I've misunderstood it.

Am I thinking correctly?

@Paul Choate

Thank you for responding. So basically the "will carry" is suggesting the owner will finance the property. Which mean I need to get a performa to see what things look like and start my property analyst also I need to find out upfront what the owner wants as a down payment and interest rate is because that has to be plugged in to my analyst to find out what my cash flow is. Yes you are correct im looking for cash flow and will be looking at my cash on cash return as well. I think I have a better understanding on what I am getting into.

Thank you for your help.

I am new to the RE World as I have said before so I am looking for some help with this topic.

I am currently looking at Multi-Family Units and came across a 4 Plex that is fully rented, good area etc....and in the post it says Owner WILL Carry. I am not sure what that exactly means or how I should handle it and what to look out for. Is this a good thing or is it a Bad thing and what potential risks might there be?

@Daniel Chang

I understand what you are saying and it makes sense. It really depends on what type of property I have, what kind of liability is to be expected (like if I have homes with pools) and what does my current insurance cover, and how much assets do I have that need to be protected. 

You have given me a lot to think about and I appreciate your time.

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