All Forum Posts by: Tim Herman

@Justin Schreiner to find local investors go to Meetup.com enter zip or town and how many miles you want to travel. Enter real estate in the search. Jacksonville must be within 50 miles of Camden County GA. One meeting tonight and two on Thursday. You can learn a lot at the local meetings. Good Luck

@Kurt Michaelson  I don't think your numbers work. You only have a 3% agent commision and $1500 closing cost. When I run selling costs I use 9% of the selling price. Your holding cost are low unless all cash purchase. On a mortgage for only  $121000 your mortgage payment is $650 a month for 5 months. What if you don't sell for another 2 months. How accurate is your rehab budget.  Not enough meat on the bone,

@Andrew Smith I am not a lawyer but I bought my house on a land contract and made payments. The seller died and had to deal with the heirs. You don't transfer title to the house until the last payment is made. There is nothing stopping the seller from encumbering the property he is selling to you. All you have is the promise to have clear title at the end of the period. A better way in my opinion is a promissory note secured by the property and title transferred to you. If I was the seller I won't carry at 2.5%, he can get a 10 year CD @ 2.75% with less risk. Good luck.

@Farhad Rahmani Go to Meetup.com  type in real estate how far you want to travel. I used 50 miles. There are two tonight and 4 next Tuesday. Good luck.

@Mel Hayes yes on 45k and he would be in default. You would have to start foreclosure on him. 

@Mel Hayes need to sign a promissory note $45000 secured by the property and record it. Terms are negotiable. He doesn't have to qualify so I would ask for a higher interest rate 6% amortized over 30 balloon in 5 years. using my loan calculator you would get $270 a month and a balloon of $41874. If the interest rate goes up after 5 years you can write another note. Since you are the bank make sure he has insurance on the property and get notifications if he drops his insurance, Might put that in a clause in the promissory note.

@Jared Chenel I don't know the cost of 4-plexes in your area. Take 5% of the selling price plus add closing cost and that will determine if you have enough money. You can do FHA loan at 3.5% plus closing cost. There is also FHA 203 K loans that you can do rehab and add that to your mortgage. Best bet talk to some local lenders or credit unions. Certain areas have $0 down for owner occupied. If cannot find anybody locally then contact a mortgage broker.

@Jared Chenel If I was starting again I would do your plan. Find a nice 4 plex put 5% down owner occupy, Live it for a year and then do it over. 10 years you will have 40 units. My area it is hard to find good cash flowing units. Learn to use a spread sheet or an investor calculator like they have on bigger pockets. It will be your best tool. Good luck.

@Robert James Pass. Not even meeting the 1% rule. If market rate is $925 your all in budget is $92500 after repairs. You didn't show what percentage you are using for vacancy repairs and property management. You don't even list CAPEX as a category. If you had owned this as a rental and had a CAPEX built in of 10% of rents @$775. $20000/$75= 266 months to pay for the foundation.

@Joe Proscia You need to contact your mortgage broker. You are in the realm of commercial loans>4 units.  Their requirements are based on the cash flow and reserves.