All Forum Posts by: Account Closed

First - I know the cost on this can vary widely, I'm just trying to get some kind of ballpark here. I have a lead on some acreage which is connected on two sides to subdivisions that were put in 5-10 years ago. I've been in the process of moving into new construction, and do not have any kind of pricing on costs to extend roads and utilities, not something I've come across yet. This particular property appears to be feasible and owner has realistic price in mind, so I'm just trying to get a ballpark to help with my initial offer.

If this property was built out the same way the surrounding areas were, there would be about 1500' feet of road and utilities needing to be extended, city water and sewer, gas and electric. Being a newer area, recently added roads are already built up to the edges of this property and blockaded- 30' width, with curbs and sidewalks. Area is relatively level, nothing out of the ordinary about the lot. Would anyone be willing to give me some idea of what price range might be, like a ballpark per linear foot?

Thanks for replies, @Stephen Stokes we're just looking at options really and what terms would be available. with the goal being to cash out. I'll look at both names you sent

Hi guys have a few rental properties we are looking to refinance, any good experiences with banks in the area? Thanks

I’m looking at a large lot that has the same area and frontage as two lots that would be typical for the neighborhood. In determining value I’m not sure how to account for cost and timeline of subdividing, or due diligence beforehand. Anyone with experience open to chatting? Happy to return the favor however I can 

@Mitchell Benson

Thanks for all the info. Yes we do have several rentals so I’m familiar with the numbers there - looking at owner finance, say at that price point with 10-20% down and 8% interest, the mortgage payment with taxes insurance would likely be a bit higher than market rent, by $100 or so. So I’m wondering if there’s a market for that.

The main reason we’re looking at owner finance is that, if the annual cash rental return not including appreciation is say 7.5% when you consider vacancy, capex, etc, and we’re able to finance for 8% - that is a better return in and of itself plus presumably less time overhead not dealing with maintenance. Additionally, property is worth more than what we have in it, so say we sell for 8% int, the actual return would be higher like 11% given we are not actually loaning the full amount being borrowed. 

So it seems preferable to renting if property is paid off, as long as there are actually buyers looking for that rate, so that’s kind of what I’m looking into. What rates would be typical, what interest level would there be etc 

@Mitchell Benson @Ronald Rohde

We have a couple SFH's that sale price would be in 150k range, which is mid-lower end of market here - the current plan was to rent but thinking they may be good candidates for someone looking to owner finance. I have looked into it a bit but there's not much data I've seen on actual market, so was curious what it looked like in practice, had some questions such as

- Terms are something I was wondering about. Are you familiar with what a typical owner financed interest rate would be? I have seen some suggestions but again no data from market.

- If the strategy is to sell the property via owner finance, are you offering the property for sale *only* via owner finance?

- Briefly looked over requirement of using loan originator and just wondering if that was an involved process - if you have any recommendations etc

- Did you receive much interest for owner finance? Ie how hard was it to find interested buyers?

Thanks guys

Anyone have experience selling (not buying) via owner finance? If so and you have time to chat I'm happy to return the favor in whatever way I can. Thanks

Got an email alert the other day for a SFH in a 200k area listed for 19k, assumed someone left off a zero. Listing was updated 4 hours later, see below. Listed by "Opendoor Texas Brokerage LLC" - I'd guess the volume approach leads to a similar level of attention to detail in other aspects of their house buying/repairing

I do, they have been one of our lowest converting lead sources. I hear on BP "I love probate leads because people don't care as much about how much they get, just want to sell!!!!" and that has been the opposite of my experience. Perhaps it is our market but they tend to want as much as they can get. The usual "I know how much things are going for here" that we get from everyone else

Anyone else have any recommendations? Surely I'm not the only one pulling permits with all the talk of projects and growth etc etc on here :)