All Forum Posts by: Wynn Williams
Wynn Williams has started 6 posts and replied 17 times.
Post: Creative Financing Options - Help!
- Posts 17
- Votes 9
I have a friend/neighbor that wants to sell me his house below market value so he can move back into an apartment and travel. Wife and I are both self-employed so acquiring a traditional mortgage is challenging based on our "on paper" income. He has a conventional mortgage at 3% and sadly it's not assumable. We can afford this, but getting a new loan at ~6.5%+ wouldn't be doable.
We currently own the house we live in and would rent it out upon moving into his house. We also own a rental property. Both of these are seller-financed on 30 year notes. We want to do this transaction so we can upgrade our living space, have another rental (our existing house), and eventually rent out the new house (his house) after we grow out of it.
What do you recommend? Can we seller-finance his house with a promissory note of some kind even though he still has a mortgage? Should we "rent-to-own" his property?
Post: Creative Financing Options - Help!
- Posts 17
- Votes 9
I have a friend/neighbor that wants to sell me his house below market value so he can move back into an apartment and travel. Wife and I are both self-employed so acquiring a traditional mortgage is challenging based on our "on paper" income. He has a conventional mortgage at 3% and sadly it's not assumable. We can afford this, but getting a new loan at ~6.5%+ wouldn't be doable.
We currently own the house we live in and would rent it out upon moving into his house. We also own a rental property. Both of these are seller-financed on 30 year notes. We want to do this transaction so we can upgrade our living space, have another rental (our existing house), and eventually rent out the new house (his house) after we grow out of it.
What do you recommend? Can we seller-finance his house with a promissory note of some kind even though he still has a mortgage? Should we "rent-to-own" his property?
Post: Attention Laundromat Investors!
- Posts 17
- Votes 9
Quote from @Ronald Rohde:
own the building or lease?
@Ronald Rohde we’d be leasing the space. Thinking about structuring the lease in such a way that would give us right of first refusal or right of first offer to purchase when it’s time to sell.
Post: Attention Laundromat Investors!
- Posts 17
- Votes 9
@Henry Clark thanks for the info and advice! I've got some further questions about some of the day to day. Would you be willing to connect me with your buddy?
1 & 2) Cashless is a great idea. Would be interested in learning about options and costs.
3) Will be asking about this. Have a call with the listing agent on Friday.
4) Copy that.
5) They are doing laundry service (wash & fold specifically).
6) I'm pretty handy and fairly mechanical, but when it comes to electric and plumbing, I'd rather leave it to the pros. Not to mention code requirements.
7) Will do!
Post: Attention Laundromat Investors!
- Posts 17
- Votes 9
Howdy! Are there any folks out there that have invested in laundromats? Looking to connect and gain some insight. Thanks in advance!
Post: Rental Unit Ready to List! What now?
- Posts 17
- Votes 9
Quote from @Erin Church:
Congrats on getting your first property ready! Discussing with the PM how they screen and their criteria is definitely important, so do that first if you get help with getting tenants. @Trevor Schmitt's idea is a solid plan, especially for starting out :)
The article that @Nathan Gesner mentions that Brandon write is also great! I would say that because the article is old, I suggest looking for a higher credit score than 600. There was an adjustment to the way things were calculated several years ago: https://www.cnbc.com/2018/08/2...
I personally look for 650+. There is some flexibility depending on the overall picture of the credit. (Things like medical debt don't concern me as they likely didn't "choose" to get sick.) Also, on background, you'd want to make sure that your area allows judgment calls based on their criminal background. Some areas consider it discrimination.
If you do decide to start finding your own tenants, I highly recommend listing your criteria in the ad, list what utilitites they will be paying, and use a google doc to prescreen. I have a google questionnaire to collect basic info - many folks won't fill this out, and many will rule themselves out with it. https://docs.google.com/forms/...
So, when someone requests more info/showing, I sent a copy and pasted email back with a link to my Google form letting them know that this is the first step in the process. I only deviate with the c/p of the email if they asked a specific question that I want to address (so, just extra info put into the email).
This allows me to quickly see who meets the criteria. I then copy and paste the same email to each person that qualifies to line up a showing and let them know the next steps in the process.
I suggest as much copy/paste correspondence as possible to minimize the possibility of perceived discrimination.
Good luck with your first rental!! :)
@Erin Church this is incredibly helpful, especially the Google Doc. Thank you for taking the time to respond!
Post: Rental Unit Ready to List! What now?
- Posts 17
- Votes 9
Quote from @Nathan Gesner:
Quote from @Wynn Williams:
Properly screening applications is the #1 way to protect your property. Screw this up and everything else will be so much harder.
This article from Brandon is ten years old but still accurate: https://www.biggerpockets.com/...
Absolutely! I may try the a la carte tenant placement that was mentioned above and then manage the property after a tenant has been placed. Thanks @Nathan Gesner!
Post: Rental Unit Ready to List! What now?
- Posts 17
- Votes 9
Quote from @Trevor Schmitt:
Hi Wynn, congratulations on your progress so far!
A strategy that I have implemented previously on the properties that I self manage is to hire a property management company to complete all of the above items that you mentioned, and get a lease signed. In my experience they have charged 75% of the first months rents for doing so. After they get the tenant in, there job is done.
I know that it can be discouraging to think of giving up 75% of the first months rent, but you should consider the time and energy you will save by letting a professional with systems in place take care of it. In addition, if you can hire a property manager and have all of these tasks completed and someone moved in by August 1... vs... you trying to complete everything yourself, and not getting it rented out until September 1... you have lost money, and a bunch of time/energy.
After the tenant has signed a lease and moved in, you take over again and continue to manage the property.
Just something to think about! Totally worth it IMO!
Thanks for this info, @Trevor Schmitt! There is actually a property management company that comes highly rated in the area. Even if they did it this first time around, it would give me more time to learn the process so maybe next time I could do it on my own. Thank you again!
Post: Rental Unit Ready to List! What now?
- Posts 17
- Votes 9
Howdy BP! Our first rental property is ready to list/advertise for rent. I'm looking for guidance on sequential steps to take to go from this point to moving our first tenant in. I've got my RentRedi account ready to post the listing. I've got my accounting all squared away. I've got the forms I need to proceed. When it comes to listing pre-qualifications, accepting applications, collecting information for background checks, etc., I am definitely a rookie looking for some guidance. Can applications be filled out electronically? Do I need to provide my email address and then send individual applications? Lots of questions. Hoping someone can help me out. Thanks!
Disclaimer: We are going to try out managing the property on our own at this time as we live next door.
@Kyle Mccaw would you mind if I gave you a call today to pick your brain on a couple things since you're in Keller?