All Forum Posts by: William Montgomery

Hi BP -

I need your wisdom. I currently own a duplex that needs quite a bit of work. Instead of doing the work myself, I've decided to just sell it. After listing with a real estate agent multiple times unsuccessfully, I listed on multiple FSBO sites, and surprisingly have had lots of interest (30+ parties have reached out to me).

I have it listed for $40k, I had multiple cash offers and seller financing offers come in above $30k. The top two were $36.5 and $36 cash.

So I’m under contract now with the $36.5k offer and after looking at the property they want to lower the closing price to $33k. I knew that the property needs work and that they would probably ask for a lower price, but I was hoping to get $35k, but could live with $34k.

So my question is, given the interest I have backlogged, do I hold out for $34/35k or do I take the $33k given that there is no telling what other parties will ask for repairs?

Any opinions or advice would be greatly appreciated!

Best,

Will

@Wayne Brooks

Got it, yes - super helpful.

Now what about risks for the seller in #1? Sounds like it’s a common enough occurrence...

@David M.

Definitely - I think my scenario is one where it makes sense given that the average listing price in the area for my size property is <$50k and loans are hard to get in that range.

@David M.

Certainly. I’ve always been under the impression that seller financing is similar to rent to own arrangement. The seller holds title until the terms of contract are fulfilled and then the title is signed over to the buyer.

In this case, the buyer would like me to sign over title at closing, and have me take a mortgage note on the property. Based off what you said though, it sounds like this is pretty standard operation for seller financing deals.

Hi BP Universe -

I have a property I am in the process of selling. I’m planning to do seller financing on it and have had quite a bit of interest. I’ve had a buyer come forward with great terms that I’d like to move forward with. However they are asking for me to change the title into their name at the beginning of the contract and then have the rest of the contract secured by a mortgage note. So essentially I would have first lien position, but they would have the title.

Is this risky or dangerous?

The only downside I can see is if in the case they don’t make payments, I would have to go through a more complicated legal process, but would still have legal right against them.

Am I missing anything?

Hi all,

I've recently jumped into out of state investing and am really excited about the prospects I've been seeing. I'm curious how other OOS investors handle closing on new properties. 

Do you travel to that new property for each closing? 

Do you use a title/insurance company local to you or to the investment property?

Do you advise always using a local RE agent to represent you?

Any other pro tips would be greatly appreciated.

Best,

Will

Blair,

Thanks for the words of caution. I’ve been doing research on and off for 6 months or so, it’s pretty clear that wholesaling has become attractive/trendy to newbies like me. And I definitely understand that there is a different reality beneath what everyone advertises. But I am and plan to be a lifelong real estate investor. However I’m not sure the best route to diving in without just...diving in. You know? At what point do you feel comfortable enough to dive in?

Any advice is welcome!

 Thanks for the heads up, I've seen other posts about this - is there anywhere where the UDRE states "what they say the process should be"?

@Cherie Orellana Thanks for the references! I will definitely keep them on my shortlist

@Kyle Pierce Thanks for the references as well. I will PM you about the contracts. 

Everything you guys have said about assignment makes total sense, I guess I especially wanted to get a feel for what was the norm in the local market. Thanks again!

@Alan Walker Thanks for the heads up - I've seen other posts about this. Is there somewhere where they say "what the process should be"?

Thanks guys for the responses, this is super helpful. Do either of you have preferred Title Companies to work with in SLC County or Utah County?