All Forum Posts by: Travis Paez

Very warm welcome and many thanks for your service. The Annapolis area gives us many investment choices within driving distance. Situated between two major metro areas has been key to me being able to find every type of investment that I've read about or listened to on the podcasts. There are some great meetups around for networking, finding deals, or just to keep the motivation level high. Please feel free to reach out if you ever want feedback on a potential deal or talk about your plans. 

Best of luck to you, Marine!

Welcome and Good Luck! The right mind set is a huge part of your success. Sounds like you're on the right track!

Welcome, Raymond! Congratulations on jumping in. Our first was a Baltimore City rowhome as well. Great learning experience and still cash flowing wonderfully. You should definitely try to make it to some meet ups. Hope to see you there but feel free to reach out if you want to chat. Good Luck!

Welcome and Good Luck!! You are in the right place. Stay motivated by listening to the podcasts daily. 

Ill try to write out an example but please don't use this without going over everything closer, you have more info on the deal than I do. 

Without knowing the value or more importantly, the ARV, its hard to rely on any of these numbers as anything more than just an example.

 My thought was if you were going to offer $200,000, be it cash or more traditional financing(in which you have to make a downpayment of probably 20-25%), the seller gets it all right now. Maybe he can live with that number, maybe not. 

Option 2 might be to offer $240,000 give him the money you had for a downpayment and he caries the note for two years in which time you repair and get refinanced. This only works if you can give him a downpayment that he likes and get the property cash flowing with the terms of the financing in place. 

Option 3 could be $280,000 with no downpayment and he completely finances for 2-3 years in which time you have plenty of extra capital for repairs and again refinance before his financing term is up. 

    Of course you will want to evaluate your different offer prices. The terms of the seller financing are negotiable, length of time can probably be any where between 2 and 25 years, and interest rate can be between 0- 6% for example. Maybe he would agree to an interest only payment, maybe he wants to defer the income so as not to pay so much in taxes. The possibilities are almost endless. I think the key is getting a conversation going and thats what the three option offer is really about. 

  I hope this helps and good luck. 

Welcome Herbert! I'm close by also. Please reach out if you want to bounce ideas off each other or to analyze a deal together. Best of luck!

What about making an offer with multiple options for the seller? You could give him the price you think is fair as one option and add another option of a higher price but he needs to finance some of the deal, maybe a third option maybe a price even higher but he finances you with interest only payments or something else equally beneficial for you. Just make sure the deal works for you no matter what option he chooses. At the very least, it may spark a negotiation.

I am in a similar situation now although I have little bit more time. I've had a 5-unit under contract for about a month, closing in October. Since we started talking, the seller has not wanted the tenants to know he is selling. He often brings up the possibility that something might happen and the deal won't go through. Although he has sent me leases for all current tenants, I think it necessary to verify the information. I have just today sent out an estoppel agreement to each tenant asking them to verify the details of their lease i.e. Monthly rent, term, security deposit amount, who is living there and other basic info. I included a letter saying that I would soon be taking over the management of this property to appease the seller's fear of letting a tenant know he is selling. Hopefully, they all will return the form completed with enough time that in case there are any discrepancies, I can have the seller sort it out. As with any info received prior to the sale- "trust but verify"

Welcome and best of luck! Like others have said, the meet ups are key. there are huge ones like at BWI and smaller ones too. Try out a few and it will catapult your learning curve. 

Welcome! As the guys have already said, the info on Bigger Pockets is better than most books but the meet ups are where you really get your questions answered. Take advantage of all the resources here and listen to the podcasts while you're commuting. Good Luck!