All Forum Posts by: Zachary Cummings

Hey @Eric Sebast! 

This does sound crazy high. Maybe he is taking into account capex and repairs too? I don't live in TN but ive never heard of anyone in any state paying anything over 12% for traditional property management. If I were you, I would call around to a few companies to get a feel for it. I like to say, trust, but VERIFY.

@Ben Jennings

If you are interested in the property, I would start there, yes. On market properties, without having some sort of relationship with the owner in today's market, will be near impossible but its always a "no" unless you ask. 

If the property is off market, this is a savvy strategy that makes the owner think about which one to take, they aren't focused on a "yes" or a "no".

Hey@Ben Jennings!

So, I personally do not have any properties that are seller financed, however a good friend/mentor of mine has quite a few, and larger ones too. Maybe hes gotten lucky to start but I believe the strategy here is building relationships and providing value to the seller even though you may not be doing exactly what he/she wants. Explaining how you're able to accomplish their goals, just in a  different way than they may have thought about. Try presenting 2 offers when you go the seller financed route. Try 1 traditional route and 1 seller financed with maybe a higher price so it is appealing to them. It really comes down to not necessarily "convincing" the seller to seller finance but rather to show them the facts. Keep in mind, this strategy only works for certain types of sellers such as a seller wanting to retire and receive fixed income, etc.

Hope this helps!

@Drew Sygit!

Thank you for your assistance here.

Hey @Account Closed!

First of all, congrats on your real estate license and being so interested in real estate. I didn't buy my first piece real estate until I was 24 so you're getting a great start. 

Second, I sold mortgages my first 5 years out of college. Whenever you are taking debt out on the property you must be on the title of the home. If the property is in your grandmothers name, she can simply add your dad onto the title and then he can take debt out. She would have to contact a title company and tell them she wants to add her son to the title. She will give them his name and I believe license info, i cant remember when I added my wife but I know she definitely had nothing to do with it. And she will ask them to draft a quit claim deed and then she will pay small fee for this and a recording fee. In Michigan the recording fee is $30, then if i had to guess the title company would charge $100 or so to draft the QCD. Once this is recorded, he will be on the title and can take out a mortgage or a HELOC.

Keep in mind, whoever is on title has to be present when closing on debt, to acknowledge the fact.

Hope this helps, and if you have any questions feel free to DM me!

Hi @Brittany Edwards chu!

First of all, congratulations on the property! Secondly, the due on sale clause is obviously tricky. I would definitely wait until you refinance to put into the LLC but I bet if you put a survey out there as to who has their investments in an LLC vs, those who do not, the majority would say LLC. The due on sale clause is possible, yes, but it really all depends on your whole financial situation as to why an LLC and not just your name.

Hope this helps a bit!

@Samantha Coppinger

Yes, I would do that just to be safe. I would double check this but there are instances where when you follow the legalities with the foreclosure process, you can  go ahead and take there stuff out of the property but you will have to store the tenants stuff for a certain period of time as well. I would look into this because it sounds like the situation may lead to this.

Hey @Marjo Naci!

Low to no money down investing really comes down to networking because they aren't falling out of the sky in a hot market or any market really. I would network and try to connect with as many people as you possibly can and as time goes on, you will be getting in front of more and more deals.

Hey @Chris G.!

You can always have a guardian co-sign then ask for any payment history from the guardians living expense, 12 months of rent or debt payment?

You mentioned he can afford the rent, depending on how much he can afford, maybe structure a higher rent payment and after a certain amount of months of paying on time, to lower it back down to what it was originally?

Hope this helps.

Hey @Samantha Coppinger! 

I would just make sure you know the PA laws about eviction and the very specific process on how it works. Every state is different so as long as you follow your states process, you will cross your Ts and dot your Is. I am sorry cant be more specific than this as I am only familiar with Michigan laws. 

Knowing this process will give you confidence in the process and for future reference.