All Forum Posts by: Dustin Lyle

Downtown. Hmmm. Other than AP students, there are only three types of people downtown. Cops, lawyers and criminals. 

I mean, sure there are probably upstanding citizens as well, but downtown Clarksville is the opposite of what we would consider a safe investment. there is a lot of crime concentrated near the river and a lot of drug use. Not very many amenities or convenient retail shopping that the average 3/2 homebuyer is looking for. 

Right now I'm looking at a MONSTER of a deal that I need to move rapidly on, I need to know the general concensus on my idea... I'm sure its used in other places, I've seen it in HUD deals and I think someone used it on one of those Flip shows...


"as-is" appraisal.......... 130K
Seller WILL accept...... 100K
ARV................ 160K-175K

Now, What im thinking is rescinding the 100K offer and offering 120K, with a "repair escrow" from buyer of 20K... which will be used to, well, repair it :)

The reasoning behind this is to obtain conventional financing without paying exhorbant interest on a hard money repair loan.
I was thinking about the 203K loan too, anyone ever used one?
What stipulations are on conventional loan doc's that might stop this from happening?
Ok... not so much of a MONSTER deal, but could definitley catapult my cash reserve.

Before you close at the closing company or attorney's office, they will do the title search and clear the title, if there is a lien, thats when it will be taken care of (unless you take care of it prior). If you want to be sure about the payments, use an escrow service, at the expense of the buyer.

If you use the lease w/option to purchase method, there will be no need to foreclose if something should come up.. Considering the purchaser doesnt own the property until they exercise their option.
If you wanted to actually "sell" the property and carry the note, You could use an attorney or escrow service for this as well... This might be the only viable option if the purchaser is going to obtain mezzanine or bridge financing to develop the land. Either way, you won't have to worry about "confirming" the payments as it will be taken care of for you.

Well... What you have to worry about is the lien holder... Is it a bank? If they have an owner occupied loan on the property, and find out you have "sold" the property, they might call the loan.. On another note, as a selling point and a way to keep yourself safe from the purchaser, Why dont you sell it via Lease Option or NNN lease option? This way, you havent actually "sold" it until they decide to exercise their option sometime down the road. With the Triple net, they would be responsible for the taxes, maintenence, insurance (with you as the benificiary) utilities etc. Some proceeds of the down-payment you get initially, can go towards a NNN performance policy if the tenants' credit qualifies. This will insure that the lease will "perform" as stipulated in the contract. The NNN allows you to utilize the equity/lien in the property, while sheltering yourself from taxes, until they decide to purchase.... Which is when you do an exchange for "like kind" property, and do another NNN... Never paying a dime in taxes! :)

Umm...thats not legal advice.. thats the law.. Quoted actually. That came "copy and paste" form, straight from the Washington landlord tenant act.

And actually... I would say that I AM a credit to the human race thank you! I've accomplished a number of things that I think contribute to society far beyond the scope of expected contribution.
But what does it say about you when you defimate people in ALL of your posts?

Really guys/gals? I seriously hope for the sake of all professionalism that this sort of direct defamation will not go lightly.

As for me personally, you don't have to worry, It won't happen. I'm smart enough to know the law BEFORE I get into a situation that might need it. Plus, theres insurance for that! :D

Whats that saying again?... Oh.. "it is, what it is".. The law is the law. Chris came to the biggerpockets community for a solution to his conundrum, I can think of no better, undisputable source of information. It was written for his specific situation, to protect BOTH the tenant and landlord, Nonpartisan if you will.

I'm certainly not advocating for either party, as im sure we do not know ALL the facts to make an informed decision. But as for Chris personally, he asked, and feedback is what he received, based on the information he provided. What he deserved for asking, was an opinion not skewed by personal vindictive tendency, or partisan based vilification. Good day.

So... We have a great diversification in the BP community, So I ponder... What is your favorite strategy for purchasing real estate? What method do you personally prefer to use, in order to gain control of a property? Why do you feel more comfortable using that method and how has it been successful for you?

Hey Tom,

Another thing you should look into, Which is a great tool when computing TVM, (TIME VALUE of MONEY), is the rule of 72. There are other number rules such as the rule of 70, and the rule of 69 and 69.3.... But the Rule of 72 is best used for yearly compunding of interest.

The Rule of 72 simply states that 72 divided by an interest rate equals the number of coumpounds needed to double the principle. I'll give you an example...

50K mortgage @ 7.2% will cost *about 100K over 10 years. (simple interest)

72/7.2=10 compounds (years in this case)

But if you got a lower interest, say, 3.6%, it would take 20 years for the same 50k to cost 100K.
72/3.6=20

Now the numbers are not "hard" or "exact" but they are fast...
And when your using money manipulation when negotiating, odds are that the other guy doesnt understand the value of compounding, atleast the way you do now. You are able to "throw" numbers around and make the guy think he's taking advantage of you... When in reality, you know the underlying concept that he doesnt.

:superman:
Dustin

p.s. when they said that knowledge is power, they weren't lying! Though this is a great resource to have, success comes from resourcefulness and your choice to create opportunity.

May I suggest a reading?

Foundations and Applications of the Time Value of Money

By Frank J. Fabozzi

It will get a little boring if your not actually interested in the knowledge it offers... Lucky for me, I WAS! My brother, not so much :)

I just have to be a pessimist and ask you... What makes them so "exclusive"?

Whats your asking price for these "exclusive" probate leads?

Are you wanting to set up a subscription type probate service or just one time thing?

What type of assurance or "guaruntee" are you offering that these aren't DEADend leads--- Pun intended :D

:superman:
Dustin