All Forum Posts by: Mike Cartmell

Hey All,
I have a potential buyer that is interested in purchase the property with owner financing. He has 100k to put down but would like me to finance the rest. I have an existing mortgage on the property.

1st Mortgage: Balance of $147,000; PITI Payment of $1043.14 @ 6%
2nd Mortgage: Balance of $20,000; Payment of $220.68 @ 8.45%

The property is listed at $215,000 now. Should I do this deal. Below are some questions I have:

1. I was intending to take the down payment and payoff the 2nd note. Should I refinance the first at today's rates?
2.What interest rate & term should I charge him? I was thinking 9% for 30 years with a 5 year balloon.
3. What are you general thoughts on this deal, any advice is greatly appreciated.

Thanks,
Mike

I will be selling my primary residence to move out of state. I am into this house for $178,000 (Purchase Price $168k + $10k Rehab). A recent appraisal shows the house is worth $190,000 even thought the tax appraisal is $203,000. I do not want to use a realtor because I don't want to pay commission and am wondering if I should consider a wrap around mortgage or lease option. I also will be moving about 6 hours away and don't won't to put up with the hassle of an out of state rental.
Thanks in advance for your advice.

What are others opinions on how old of a mobile home to invest in? Can you go as old as 20 years old?

So really they would pay rent credit until the full balance of their loan would be paid to you? How much do you ask for the option fee?

I'm fairly certain I read somewhere that people sell mobile homes on lease options, aka Rent-to-Own. My question is how do you structure this deal differently than using a lease option to sell a SFH?

I just ordered two Lonnie Scruggs books and should be receiving them soon. I apologize if he covers this in his book, but I wanted to ask the question before it slipped my mind.

Thanks in advance,
Mike

Is there any particular paperwork or contract that I should use when collecting a referral fee for a tenant/buyer that I referred? How much do you think is adequate for the fee? 25% of the option premium or a flat $1000?
Thanks,
Mike

Great Post Rob,
I am fairly young and purchased my first condo at 20 years old. I made about $25,000 when I sold it due to appreciation. However, I had not seriously began to study REI before I purchased my first short sale last November. I bought it around 85% of fair market, which is not a good rental purchase from what I understand now. If I were to rent it, I could barely cover the mortgage but if I put it up as a lease option I can see a little more rent and profit in the end. What are your thoughts on this?
Thanks,
Mike

Tom,
It sounds like you just need someone to tell you to work thru the pain. If it is an MCL, the DR. isn't really gonna do anything but tell you to lay off of it. I played several years of college football and have had many knee injuries. Some of the hefty lineman would tear up there MCL's and would take 5 days off and then be back on the field playing with a knee brace. I think you can work thru it with some ibuprofen and plenty of ice. Make sure to elevate it when your not working to decrease the swelling. It might be smart to wrap it and wear knee pads if your working on your knees. I am not a doctor but that is how I would address it. It is going to be painful though. Good luck!

She was not under contract for 70k, She was under contract for 79k but could not find anybody to assign it to so the bank dropped there price.

So the price has been reduced to 70k now. And we are going with hard money to finance the 10% down and rehab costs. The money would be received up front before the purchase of the house. I've watched this lady flip several homes and she has done a good job and flipped in less then 2 months on them. She has never used a realtor to sell any of them. So there is no commission. She markets the heck out of these homes from day 1. This is how it breaks down.

70k purchase price
4k closing costs
15k rehab
4 points to hard money of $1,040 (4k+15k+7k)*4%
90K Total Invested

118k Sale Price

Potential Profit split 50/50 is 28k

What am I missing or confused about? Please talk me out of a deal that might be a mistake.