All Forum Posts by: Ty Coutts

Hi Henry,

I'm a licensed loan officer in Georgia, if you need help with anything up that alley, let me know! 

Hi Joesph,

It's awesome that you took the leap into fix-and-flips and already have your first deal hitting the market soon—huge milestone! Plus, becoming an agent gives you a big edge in finding deals and networking. Since you're in West Palm Beach, you're in a strong market for both flips and rentals. Definitely look into local meetups, REI groups, and BP networking events to connect with like-minded investors. If anyone in South Florida wants to link up, hit Joe up! Wishing you success on your first flip and beyond!

Hi Kevin,

I'm a licensed loan officer in the state of Florida, if you'd like to schedule a quick call, DM or email me!

Hi Alev,

It’s awesome that you jumped into a 4-plex in Carson City as your first deal, especially out of state. That takes courage! It sounds like you’re on the right track, refining your strategy and preparing for your next move. Since you’re focused on buy & hold multiplexes, consider networking with local investors, refining your underwriting skills, and researching markets with strong cash flow and appreciation potential. With one deal under your belt, financing may also be easier this time. Keep learning, stay patient, and take calculated action—your mini empire is in the making!

Yes, you can seller-finance the property with a wraparound mortgage (also called an all-inclusive trust deed). This allows you to keep your existing 2.5% mortgage while financing the buyer at 6%. The buyer makes payments to you, and you continue paying your original lender, profiting off the interest rate spread.

However, this does come with risks, mainly the due-on-sale clause, which allows the lender to call the loan due upon transfer. Some sellers mitigate this by structuring a land contract (contract for deed) instead.

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.