All Forum Posts by: Ty Coutts

Hi Wynn,

Your best option is a "subject-to" or wraparound mortgage if your seller is open to it. While his loan isn't assumable, you could structure a deal where you take over payments while giving him equity in a seller-financed second note. This keeps his 3% rate intact while allowing you to buy the home. However, there’s a due-on-sale clause risk, so proceed carefully.

A lease option (rent-to-own) could also work if you need time to qualify for a mortgage later. If he's willing, contract for deed (installment sale) might be another seller-financing route.

Hi Brenden,

Your plan to use a HELOC to convert your basement into a rental unit sounds like a solid house-hacking strategy, especially if you can get $3,000 in combined rent. This would effectively cover your mortgage and significantly reduce your living expenses. However, make sure to account for renovation costs, HELOC interest, vacancy rates, and local rental laws. If the numbers still work, this could be a great way to leverage your current property. That said, if you have the option to invest in a better cash-flowing deal elsewhere, it's worth running the numbers to compare returns.

Hey Tony,

To determine if a buyer is qualified, I recommend requesting a few key documents upfront. Start by asking for a pre-approval letter from their commercial lender—it shows they can secure financing. You should also request a personal financial statement to better understand their financial health and proof of funds to confirm they have the liquidity for down payments and closing costs. These steps will give you confidence that the buyer is serious and financially capable of completing the deal. You might also want to check their creditworthiness, especially for larger transactions. We at Aslan would be happy to help you through this process as well so feel free to reach out if there are any inquiries. 

Hi Seth,

The BRRRR method can be a powerful strategy for building wealth, but it's crucial to approach it with a solid financial plan. From a financial standpoint, the key is to ensure you're purchasing properties at a price low enough to make rehab costs and refinance achievable. You'll want to focus on securing a favorable financing deal at the refinance stage—ideally, you want to pull out as much of your initial investment as possible while keeping monthly payments manageable.

A big consideration is understanding your after-repair value (ARV) and ensuring the rehab costs add value in proportion to that. Also, cash flow from the rental needs to cover your mortgage, insurance, and taxes. Be sure to factor in contingencies for unexpected costs during the rehab process and maintain a realistic cash reserve for property management and maintenance. Always evaluate the numbers before proceeding to ensure the property will produce positive cash flow long-term. If you have any questions or wish to know more about the financing process, feel free to reach out.

Hi James,

Given your situation, a potential short-term solution could be to explore a seller-financing option. This would allow you to bypass traditional financing and directly negotiate terms with the seller. Another option could be a lease-to-own agreement, where you rent the property with the intention to buy it later once your credit improves and your COE is issued. Additionally, if you're able to make a larger down payment, some private lenders or hard money lenders might consider offering you financing, though these typically come with higher interest rates. Once you're able to refinance with a VA loan or better credit terms, you could pay off the short-term loan. It's essential to discuss all these options with a mortgage broker or financial advisor to ensure the best approach for your long-term goals. At Aslan we work with a range of lenders, and I'd be happy to see what we could do.

Hey Mike, 

In this situation, it's important to be cautious and transparent. Taking a deposit to secure the deal can be a good option, as it shows the buyer is serious and committed while also giving you the time needed for the 90-day rule to clear. However, you should have a clear agreement in writing that outlines the timeline and conditions. Alternatively, you could draft a contract with a delayed execution date, stating that the agreement will officially go into effect once the rule is lifted. Either way, make sure to consult with your real estate agent or attorney to ensure everything is legally sound, and keep the buyer informed about the timing. If you have any questions, feel free to Dm me.

Hi Ken, 

I'd say, it’s critical to remember that your financing strategy should align with market trends and buyer financing options. When flipping, the most important thing is understanding the available loan programs for potential buyers. With homes staying on the market longer, be aware of interest rates, as they can influence buyer affordability. It's also essential to factor in your financing costs and ensure your cash flow projections align with holding costs. Before committing to a flip, ensure you have a clear exit strategy, whether it’s selling quickly or holding for a longer term. If the market shifts unexpectedly, it’s vital to know your options and avoid over-leveraging. Keep a close eye on the actual cost of rehabs and make sure your remodel stays in line with comps in the area to ensure profitability. Finally, work with your lender to assess the financials thoroughly before jumping in. If you need any help on the financing, please feel free to DM me.

Hi Nina,

These strategies are great for diversifying and maximizing returns. From my perspective, it’s essential to ensure that financing aligns with your long-term goals and risk tolerance. For co-living spaces, it’s important to confirm that lenders are comfortable with the unique rental model, as it can impact property valuation. For value-add investments, securing the right type of financing that accounts for the property’s potential appreciation is key. When considering creative financing, it’s crucial to fully understand the terms and risks of partnerships, seller financing, or using HELOCs to avoid overleveraging. Lastly, land development requires solid planning and capital, so getting the right development loan with flexible terms will be vital for success. Keep a close eye on interest rates and cash flow projections to ensure these strategies align with your financing plan.

Hey Jokari,

It sounds like you're in a bit of a tight spot, but there are a few options to explore. A bridge loan could work, as you mentioned, allowing you to access immediate capital to pay off the equity agreement and then refinance later once you have more equity in the property. Another possibility is looking into a home equity line of credit (HELOC) on your personal residence, which could help you tap into available equity without a large lump-sum repayment upfront. If the cash-out refinance option isn't providing enough liquidity, you could also consider a hard money loan, though these tend to come with higher interest rates and shorter terms. Ultimately, it's essential to consult with your lender to understand what's best for your long-term goals and costs involved.

Hi Chris,

Start by networking through BiggerPockets, local real estate meetups, LinkedIn, and self-storage investor groups. High-net-worth individuals, private lenders, or experienced investors looking for passive income may be ideal partners. Be clear on terms—percentage of equity, profit-sharing, and exit strategy. Consider structuring it as a joint venture (JV) or syndication. Also, explore creative financing options like seller financing or private loans to reduce upfront capital needs. A strong deal presentation will help attract serious partners for this and future investments!