All Forum Posts by: Tripp Wylie

@Chris Seveney very helpful, thank. Yes, need to do the math to be sure. 0% for max of 50% could make sense. But need to do the math on what straight lending looks like, and keeping 100% equity.

The quick access to capital is obviously huge for winning deals on terms, closing quickly.

@Jacob Sherman that’s correct. Me and other partners handle everything from sourcing, managing rehab and sale.

Me and two other partners are flipping houses locally and are using a local individual for the financing. We’ve done a few deals to prove things out and so far so good.

The structure has been we are loaned the money at 0% but the lender is getting a big chunk of equity. Deal #1: 70%, Deal # 2: 50%.

The lender is using a line of credit at 8%, so he does have interest expense, but not passing that on to us.

Really my question is, what’s a long term structure that makes sense for both sides?

Lending at 0% is great but is 50-70% too much equity per deal?

Is there a structure that makes more sense?

Should we offer preference and less equity?

Thanks!

Rental history is excellent. Expenses are moderate. Accounting for 8% property mgmt few, 5% maintenance, 5% vacancy, 5% cap ex even though it is freshly renovated.

I had an opportunity pop up recently that involved owner financing. I’m just not sure how to analyze it. It’s a $150,000 house (market value). Currently it is rented for $1300/month. Renovations are being done and rents expected to increase to $1500-1700. The financing terms are 20% down, 3 years @ 7%. Or Interest only with a balloon at the end of 3 years. This is a college town in a good area that stays rented. I am not able to do traditional financing at this time which is why the seller financing has attractive. Thought about offering less down, longer term etc. Help please!

I have a property that appraised for 200k around 3-4 years ago.  I owe roughly 100k on it.  I refinanced it a few years ago to a 15 year loan with the mindset of paying it of early.  I've definitely read about a much different strategy and need some help.  I'd like to tap into the equity and get another property.  What should I do?  Home equity loan?  Line of credit?  Is it possible to refinance and go back to a 30 years loan so it will cash flow better?  Thanks for the help!

New to Bigger Pockets and excited about what I've seen and read so far.  

I currently have two properties.  One is listed as my primary residence because I lived there for a few years but now I rent it out to tenants.  I also bought a second home because I thought I was changing jobs and moving.  However, a different opportunity fell in my lap and I'll be in a different city and looking to buy and make it my primary residence.

My question is this: if i have the two properties mentioned above rented out does the bank waive those mortgage payments so they don't count against my debt to income ratio?  Do I have to showed signed leases?  Have tax returns? etc?