All Forum Posts by: Zak Cooper

@Michael Quarles 1:9 is an exceptional close rate! I am beginning my journey on cold calling absentee and out-of-state owners and if I could be 1:109 to start I'd be floored :D

Agree with you @Jonathan Greene, I will be focusing on obvious signs of neglect from absentee / out-of-state owners or owners who are entering the later stages of life who may just want payments rather than tenants. Question, when you mentioned owners with big portfolios, as I'm new to this and unconsciously oblivious, do people sell properties out of trusts or LLCs? My first inclination was to avoid portfolio owners, but perhaps this is due to a lack of experience. 

Thanks!!

@Don Konipol, thank you for your feedback. When closing, must all the third parties be present, or are they simply authorizing/notarizing the purchase agreements beforehand?

Hey BP peeps, 

Newbie here, in discussions for my first Seller Financing deal!

Apologies in advance if there is a forum post similar to this, but I couldn't find one with a checklist-style format. As such, I am asking if there is anything you vets out there would add to this checklist. The areas I am most clueless about are where the attorney/notary gets involved to authorize the transaction and make things legally binding. Thanks!

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SEE MY CHECKLIST BELOW:

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1. Purchase Agreement:

- [ ] Property Description

- [ ] Purchase Price

- [ ] Down Payment

- [ ] Financing Terms (Interest Rate, Repayment Schedule)

- [ ] Closing Date

- [ ] Contingencies (Inspection, Appraisal, etc.)

2. Promissory Note:

- [ ] Principal Amount

- [ ] Date

- [ ] Payments Schedule

- [ ] Interest Rate

- [ ] Prepayment Terms

- [ ] Default Consequences

3. Mortgage / Deed of Trust:

- [ ] Property Description

- [ ] Mortgage Amount

- [ ] Interest Rate

- [ ] Repayment Schedule

- [ ] Default Terms

4. Title Insurance Policy:

- [ ] Coverage Details

- [ ] Policy Amount

- [ ] Effective Date

- [ ] Exclusions

5. Closing Statement:

- [ ] Purchase Price

- [ ] Down Payment

- [ ] Closing Costs

- [ ] Total Due

- [ ] Payment Method

6. Credit Check or Financial Information:

- [ ] Obtain and review the buyer's credit report or financial information.

7. Legal Assistance:

- [ ] Seek legal advice to ensure compliance with laws and regulations.

8. Insurance:

- [ ] Buyer obtains property insurance.

- [ ] Seller may require additional insurance coverage.

9. Due Diligence:

- [ ] Conduct property inspections.

- [ ] Obtain appraisals, if necessary.

- [ ] Review any other relevant documents or information.

10. Agreement on Default Procedures:

- [ ] Define default conditions.

- [ ] Agree on default consequences and procedures.

11. Communication and Documentation:

- [ ] Thoroughly copy, print, and notarize documents and all agreements/discussions.

Thanks BP.

HEY BP Community, newbie here looking to begin mailers and was wondering if any experts or people who have bought via owner financing could give me some pointers on things I may be leaving out or things to omit. Also, perhaps a mailer service you like. Thanks!

- - - - - - - - - - - - - - - - - 

Dear [Owner's Name],

I hope this letter finds you in good spirits. My name is [First Name], and I've recently discovered your lovely property at [Property Address]. It's apparent that your home holds a special charm, and I'm writing to express my sincere interest in it.

So you're probably wondering how I got your information... While researching properties in the area, upon further investigation, I learned that the property is currently owned by an absentee owner. This information was obtained through public records and speaks to the diligence and transparency with which we are approaching our first home purchase.

[Insert bit of personalization about who I am, my family, and build trust, essentially humanizing the note].

I understand that selling a property can be a significant decision, and may not be one you are considering, but if you are, I want to assure you that I approach this with respect and am eager to explore the possibility of finding something agreeable for the both of us.

Here are a few reasons why seller financing (you not the bank) could be beneficial for you:

• - Steady Income: Seller financing offers you a reliable source of income, providing monthly payments without the hassle of managing the property directly.
• - Flexible Terms: We can discuss flexible payments that suit your needs, allowing you to customize the agreement according to your preferences.
• - Avoiding Hefty Tax Burdens: By spreading out the sale over time, you may mitigate the impact of capital gains taxes, making seller financing a tax-efficient option.
• - Legacy Planning: If you're concerned about leaving a lump sum to your heirs, seller financing allows you to pass on your wealth gradually, ensuring financial stability for your loved ones.
• - Minimal Hassle: Seller financing eliminates the need for bank involvement, reducing paperwork and streamlining the sales process.
• - Assured Sale: Choosing seller financing may attract a broader pool of potential buyers, beyond myself, increasing the likelihood of a successful sale.

I believe that by working together, we can find a solution that benefits both of us. I'm willing to accommodate your needs and preferences to make this process as smooth and mutually beneficial as possible.

If you're open to discussing this further, I would be delighted to meet with you at your convenience, perhaps for lunch someplace near that you like. Please feel free to reach out to me via email at [Your Email Address] or by phone at [Your Phone Number] if you're interested in learning more.

Thank you for considering my offer.

Warmest regards,

[Your Name]

P.S. Here's a photo of us to familiarize yourself with who you would be chatting with.

Hey John, 

One thing that may help as you are not sure how to start this process is to search your city in the forums (ex: Denver or Austin) and find who are the most active posters/repliers in that market. 

The same goes for topics, Single Family/House Hack/ Multi-Family... all can be searched to begin gaining rudimentary knowledge. As Wale said, one thing will lead to the next if you keep letting one question lead to the next.

Welcome to BP! Best of luck!

Welcome to the site James! I am fairly new, but one thing that has helped me so far is typing in my city of choice and finding people who are recurring names and trying to connect with them. 

Additionally, someone has created a post about any topic you can think of. Just search and study :)

I hope this helps and best of luck on your journey James!

Congrats Will! I hope to be following in your steps here soon. Are you investing in TN?

@Lonnie Pickard & @Logan Laperriere thanks for the warm welcomes and suggestions.

Regarding renting out a BR, I have contemplated it. I have also considered getting a 3% first-time down Fannie Mae loan to secure a property and rent it out by the BR via Airbnb. Truthfully, living with someone full-time isn't something either of us intends to do though, lol.

Looking at seller financing options too, but need to educate myself on this. Although, this seems like the way if you can find them.

Thanks,

 Love this advice. Curious, with your history in of owner financed properties do you find mostly that it is people who are just wore-out landlords and appreciate the steady paycheck?

Another thing to consider... that I am thinking of is perhaps some parents or owners would prefer their heirs to receive payments rather than a lumpsome of money to use it more responsibly.

Hey all!

My girlfriend and I recently moved to IC for her to begin Med School - hoping to connect with people in the business new and old!

We are looking to purchase our first property this year, specifically a SF/MTF buy & hold in the Cedar Rapids or Iowa City area.

We do already have a realtor.

*Out of curiosity, how long did it take you from when you first heard about real estate investing to make your first investment?

I first started reading/listening to BP back in 2020 and boyyyy do I wish I had bought when I lived in Tampa, FL LOL. I'm sure some of you have similar stories :D

Cheers,