What can I do next with my plan?

Question

So I am new to investing. Currently surviving on one income while my wife is a stay at home mother. Thankfully, I have a large bonus dropping soon from my job of about 10k. I want to find a duplex for sale near me to house hack while renting the house I'm currently in. I want to find a duplex that the seller is willing to do seller financing with me on so I do not need 20% down per say. Then, after a year, I plan on refinancing into a 20% down conventional loan. I have about 2 months until my bonus comes but it is locked in for sure that I'll have it. I have created an LLC to hold my investments. I crunch numbers on properties when I can. I even have a simple business card to help advertise my goal of finding a duplex. (Really because I think it looks terrible to hand someone a piece of scrap paper with my name written on it, lol) what else can I do in preparing for my opportunity?

“I will study and prepare, and someday my opportunity will come.” - Abraham Lincoln

Thanks BP.

“I will study and prepare, and someday my opportunity will come.” - Abraham Lincoln

Thanks BP.

Dalton Dellinger · Answer

@Josh Pryor Anne from the REI Meetup had mentioned at the last meetup that she was considering private lending if the numbers worked for her. Maybe if you found a deal and presented it to her in a way that offered her a great return, she would be your private lender? Also missed you at the last meetup. Hope things are going well for you and your family. Reach out when you can.

Dalton

Josh Pryor · Answer

@Jamal Muhammad @Dante Pirouz thanks! I have a reputable lawyer recommendation from a REI friend that I’m looking to meet with soon. Thanks again!

Dante Pirouz · Answer

We’ve done a land contract with a seller because that’s the norm in Michigan so you should check in your state what type of seller financing is usually done. A local lawyer who handles real estate or an agent should be able to tell you which one is the option for your area.

Jamal Muhammad · Answer

@Josh Pryor Owner-financing agreements transfer full title to the buyer, while land contracts do not. Land contracts gives you equitable rights to the property but not legal rights. Meaning the owner can’t sell the property unless you don’t meet the guidelines of the contract. So the owner will hold the legal title property until the buyer pay off the asking price or until he/she can retrieve a refinance deal somewhere else.

I say research other options if you are having hard time getting a loan or need time to save for a down payment:

1. Leasing options (rent-to-own)

2. Hard Money and then refinance

3. Private lending and then refinance

Josh Pryor · Answer

@Chris Seveney what is the difference in seller financing(or owner financing) and a land contract?

Chris Seveney · Answer

@Josh Pryor

Another thing you can look into are properties on a land contract. You typically don’t need 20% down and you get title when loan is paid off. If it’s a duplex and you house hack it and have good credit you can refinance it out after a year or two since interest rate will be higher

Food for thought