All Forum Posts by: Ronald Fontenot Jr

 Here is a screen shot of my confirmation showing the class is on my itinerary. Yes we are able to transfer our tickets and it is above-board with the powers that be. Once transferred it will be in your name. 

 I have the ticket you're looking for. Includes the house flipping class. Only asking 850 for the whole deal. Let me know if you're interested. 

Single BPCON 2023 ticket for sale. A scheduling conflict just popped up, can't make it work. Price discounted to $850. DM if interested. Includes house flipping masterclass with James Dainard...$300 value.

@Chris Seveney Thanks. I've just opened up that dialogue with them. I think seller finance would be the easiest and most secure way.

@Larry Turowski there is no mortgage nor liens. I was thinking to get the seller to owner finance it to me with no payments for one year. Wouldn't this solve that issue?

I have negotiated a contract on a home and am considering a creative exit plan. 

The seller is willing to allow me to secure the house with the contract at our price of 250k. ARV is 360k at minimum. Rehab is 40-50k.

Rather than wholesale it, which doesn't really work with the 70% rule of thumb, seller is willing to allow me to rehab the house while they technically still own it. This avoids me having to get hard money loan to purchase it as well as the cost of  that. Once rehab is done, the home will be listed with a realtor and sold at market.  When sold, seller gets his 250k, I get the rest. 

Is this a workable structure? How would I secure my interest once the house is listed since I think my contract would have to be canceled for the seller to list it?

@Chris Seveney I am the builder and can build at cost. I've built several 2/2 homes that I've gotten the bugs worked out of. I can take that plan and combine them to form the 4 plex to save on materials and labor. Project would be Houston metroplex. 

I'm looking for input on this scenario...

I own a piece of land on which to build a 4plex with 4- 2/2's. Cost to build is $400k. Assumed ARV is $575k when complete.

Finance out $400k at completion at 7.6% on a 30 yr note. Setting aside $600 month for vacancy, maintenance and capex. Tenants pay utilities.

Unit rentals at $1500 per month each or $6000 per month total rent.

My calculations show that if no down payment is necessary, the property would produce 1.23-1.35 DCSR depending on the method. Cash flow would be $962 per month. Considering 10k in closing costs, it would provide CoC ROI of 115%.

Using conventional financing, will the LTV of 70%, or the land value, negate a down payment? What about DSCR financing?

Thoughts? What am I missing?

Thank you everyone for the information! I've spoken to my friend and relayed all of this to him. Needless to say, not the news he wanted to hear, but a couple of options are there that he hasn't considered. @Taj Akinbode, I have to agree with you that he needs to find another realtor. Out of curiosity, I looked up her listings and they are all sitting on market, so likely not his best choice. But...family, you know. 

I guess we'll see what happens. Thanks again all for the advice!