First deal.. I think

2 Replies

I am thinking about finding properties and negotiating the price down by 10K or 20K by offering cash for the deal. If the owner is willing to drop the price that much I will go to a private investor and bring them the deal in return they will sell me back the deal at a little less than market value on terms of them owner financing the whole loan amount and pay closing costs. I pay absolutely nothing upfront. So they make money on the sell and on the length of the loan. Plus I will pay a higher interest rate to them and by owner financing they will limit there tax burden.

I think this is a good idea ( or a win/win for the investor and I )  but I am very new to this industry and I am sure there is a lot of holes or flaws in my idea so any advice would be GREATLY appreciated.

Thank You BP community.....

well, brandon, its a start. however, it sounds like the private investor will make more money than you do. talking someone down 10 or 20k sounds like a good start, but if you are going to pay the investor 10 or 20% to owner finance it for you, are you really ahead? what you need to find is a place that gives you 20 to 50% return AFTER you buy it from the investor. yes, i know, hard to find, but not impossible. in time  you will get better at making deals, but don't get all caught up in a first deal just because you want to get going. you may stop yourself dead in your tracks before you can even get going

@Mark Elliott

Thank you for responding to my post. I am kind of caught up about my first deal. However The property I have in mind is currently listed at 147K the owner owes money to the HOA so they need to sell if I offer a cash offer of 127K and they are willing to go the low the investor would love to buy because an identical property sold for 169K in the same complex. So it the investor buys at 127K and sales to me for a little less than markets say 12% less then the investor would make 21,720 dollars just on the mark up not to mention me paying 6% for 240 months.

So technically if I didn't refinance I would end up paying $276,726 during the life of the loan but I would refinance after 2 years so I wouldn't have to worry about that. Maybe I am wrong but to me this looks good especially because the property would still be cash flowing for me at these terms.

But I really appreciate your advice because it is my first deal and I think its very important to talk it through with someone so I don't make an EMTIONAL purchase and miss something that could be devastating. Maybe I'll keep looking I don't know maybe I am rushing it I just want to get started already I am tired of just reading about this stuff I fell like I need to make a move already.

Thank you for your help Mark.......

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