All Forum Posts by: Tysson Dykes

That seems like a valid concern and a good way to address that issue. Thank you for the clarification.

update: Title company has suggested we use a real estate contract to avoid triggering due on sale clause...thoughts? Not sure as to exactly why they arent ok wrapping...or maybe they just see this as less paperwork maybe?

Here is what I know so far.

Duplex asking price is $335K...identical one next door owned by same owner just recently closed for the same and appraised fine.

Rented at $1935 monthly total, rents are low and have room to go up.

Listed with an agent. I have been keeping in touch with both for awhile now and they both seem to be open to seller financing. The topic brought up was the seller would be willing to do a wrap. Seller purchased in 2019 for 190K with a conventional mortgage and did renovations to get it to current value and by all accounts seems to have done a good job there.

My problem now is I have never done a wrap and do not know where to start. The agent is asking me if I would be willing to write something up to present. I bought myself some time by them doing some homework digging up additional details but in the interim I could really use some help on how to approach this, and even if it makes sense to do in the first place.

My goals here, correct me if I am way off base. Get into the units as light as I can, try to get a min of a five year term before the refi balloon comes due. Agent thinks seller will want to come up on the price a bit for doing the seller financing aspect which could work in my favor.

Terms I would like to present. 5 ( preferably 7 year term ), 2.5% down ( to cover his agents commission ), 2 years principal only payments then the remaining 3 years at 4% interest. In my head somehow this pencils out but my brain is all over the place at the moment since this is all new to me. 

Can someone offer some insight and get me off the ledge LOL. Also I do not even know what formwork or contracts i would even use here assuming this is viable to begin with...

Always nice to meet someone local-ish! For renovations I am fairly inexperienced for sure. I do like the blank canvas and going from ground up though. I would like to know lessons learned on the renovating side though. I have had a few deals come my way that I really did not want to take on involving renovations. Recently though I have been considering a change in tactics.

Hello there,

I stay on my side of the river over here in Washington but nonetheless wanted to say hi!

Planning on attending the one coming up in a few days. There a facebook page for this event by chance...something that is updated monthly with discussions and what not or is this thread it?

Your best best for getting those types of leads in my opinion are expired listings. Connect with an agent in the area and maybe start coming across those. Another thing to think about is going to the title company and getting a list from them. Something along the lines of homes purchased FHA or VA in the past 4 or so years, with expired listings and whatever other criteria you may have. Hopefully this list will yield you leads with little equity and lower interest rates so you have the higher chance of conversion with them. Would be a good idea to contact some title companies in the area ahead of time to see which ones will do subject to deals and wraps on those types of mortgages. Not all will.

Best of luck!!!

Located in Longview, Wa.

Zillow Values at $286,000 Comps run about $$275-$280K Will sell off market for $270K

Home is leased for $1400 month on a lease that expires 7/2025

-New electric ( permitted ) in 2021

-New pex plumbing ( permitted ) in 2021

-Bathroom remodel in 2022

Home is located on mass transit routes and blocks from day cares and schools. Has had a zero vacancy rate since owned in 2019.

Home has large backyard and could potentially add an ADU.

This is an off market home. Just putting feelers out there to see investor interest. Will list after lease is up unless we find a buyer before hand. I am a Washington agent and the owner.

Have another as well: https://www.biggerpockets.com/...

Investment Info:

Townhouse other investment.

Purchase price: $235,000
Sale price: $347,000

Townhouse purchased in a lot development. Bought in early using my VA loan. Waited for the area to appreciate and prices to go up and the lots were developed and sold.

What made you interested in investing in this type of deal?

I knew as the lots built and sold the values would go up.

How did you find this deal and how did you negotiate it?

The lot was under contract but fell out. Since I lived close I was able to step in and take the previous buyers place with minimal downtime to the builder. That allowed me to get in with just a $500 deposit on the lot

How did you finance this deal?

I used my $0 down VA loan for this one

How did you add value to the deal?

I upgraded the home where I knew the next buyers would see the value. Premium flooring, granite counters and a few custom features.

What was the outcome?

$110K profit on a $0 investment!

Being new to the space and having the money that you do...out of state is going to be really difficult.

One option you could use is stay local at least to start. This does not have to mean down the road. I had a nurse right around your age a few years ago considering the same thing.

She opted to take the long commute to Portland and actually invest in a duplex up near where I do business ( Longview, Wa ). She worked at OHSU and the drive wasn't the best. It did allow her to owner occupy the property, get into it with less down and the tenant on the other side made her living expenses very attractive. Two years later she was able to do it again but with a conventional 5% down. I think she stayed there for about 6 months doing some cosmetic work and then was able to move close to her work having 4 doors and decent cash flow.

Between the two properties I believe she was all in for around $20K. My point is I suppose that had she gone direct out of state there would be now way she could have pulled that off given the cash she had at the time. Its a point worth considering.

Would love to connect if I can help in anyway!