Making it happen...how???

Question

Before I go on my voyage of doing a few deals and then working my up to other facets in RE, I need to know some strategies that will allow me to successfully get into long term buy&hold deals if I have (1)a HML who will fund my deal at 65% of the purchase price and a willing seller that will carry back the remaining 35% in order to close the deal in 5 days?

My exit strategy is refi 12 mos later, payoff HML, continue to pay on seller 2nd for 5-7 yrs, do another refi and cashout seller and then I work towards paying off the long term mortgage.

Tom S. · Answer

@Rodney Dixon  regarding your specific strategy - you'll have to check if the HML will allow a 2nd mortgage (seller carry back) in the deal - most won't.  Most will also want to see some of your cash into the deal, and/or cash reserves.

Casey's post above is a good alternate strategy for buy and holds.

I got started with variations of owner financing, before moving on to small local banks that could provide purchase + rehab funding.  Ask to speak to the commercial lending department.

Good luck!

- Tom

Casey Mericle · Answer

• Find an owner willing to owner finance
• Find an owner in which you can take over payments
• Find an owner willing to masterlease allowing you to sublease for a portion of the rents
• Find an owner willing to lease option/rent to own with the availability to sub-lease (this is quite similar to 3 other than the title at the top of the document

There's plenty more.  Lending from a HML or a bank is going to slow your goals down, so if you can find a motivated owner to play ball you'll be able to gain assets and wealth at a much greater clip.

Rodney Dixon · Answer

Actually, I was seeking a list of strategies and their variations that will allow me to do deals via the 2 components of the HML funding deals at 65% an any sellers that I come across that are willing to wheel & deal w/a 35% carryback for what I for see as "lump sum now - cash over time - and a lump sum later."

Joshua D. · Answer

@Rodney Dixon

Not exactly sure what your question is but it seems as though you have an idea that you want to run with. Always be willing to change the plan if need be, flexibility is a key trait in a good investor.

What is holding you back from doing this deal in the morning?

Good luck out there.