All Forum Posts by: Aaron Junck

Ok, fair enough.

So where does a person find a private MLO? lol Or will this be a new business for people to develop?

The 13k comes from them paying you to take the property because you would purchase it for 70 and if 83 was owed they would have to pay you for the difference.

Once again listen to the 2nd podcast she did this. Most people wouldn't even think of this and just walk away. One thing I always try to keep in mind is anyone trying to sell a property for FMV is that if they are lucky enough to get that, it doesn't mean at closing they will get that.. in your case:

They purchased it at 85k a year ago so they have virtually nothing paid down.

Say they try to sell it for 85k, unless they are lucky to find someone on their own they will have to get a realtor involved, in which they will be out 6%. In my market houses sell for close to 96% of listing . If its only worth 85k that means for around here they would get 81.6k. Now figure the realtors 6% thats close to another 5k off. puts you down to 76 ish.. this doesnt even include closing fees and the previous years taxes.

1st thing I try to put in my numbers is 10% off the top because thats at minimum what it will take to sell.

Does that help at all?

As far as the VA goes I am not 100% sure on your question. I have heard they are assumable, but I also heard that you have to be a veteran in order to assume it.. Maybe some of the veterans out there can enlighten us both on this.

@Duncan Taylor Im not sure if you didn't read my entire post or not...

Any legitimate business has an objective or you may say a purpose/goal.

In my post :

Written down goals are huge and that is what a business plan is . Whats the big deal if you spend a Saturday thinking and going into details on how your going to get each step done? Then you will have a guide to fall back to whenever you have a question on what your trying to do. :)

Is this not the same thing on what your saying?

Unless I am misunderstanding what your saying, it sounds like your saying a business plan is not a goal? Most business plans start with a mission statement in which it tells the purpose of a business. It then goes into telling how the business will achieve its mission by going into detail everything from day to day operations to marketing to advertising to legal structure etc...

I would 100% agree with you by saying if you don't plan then you plan to fail!

Can we brainstorm here a little?

Say for some reason @Bill Gulley wants to sell me a house and finance it ;)

How would a person go about doing this? Is there going to be a new business model out there that just does loan originating and underwriting? I would have to think that Bill wouldn't be able to talk with me on the deal because it will be a conflict of interest unless he has no affiliation/influence on the deal whatsoever with the underwriters, correct?

Wouldn't then the issue be that if I would be able to qualify for under this underwriting, I too would be able to qualify under traditional aka conventional underwriting standards? This would defeat the purpose of going owner financing for the most part due to most wanting to sell owner financed know they can get a better rate of return on their money this way vs many other investments??? I understand many do it for the tax implication of collecting all profit all at once so there still is a little bit of reason for them to do it but not a lot, that I can think of.

Or... would the owner be able to have some leniency on the underwriting? Which then we fall back into the conversation of subprime.....

Not to get political but it seems like just more and more regulation...

Hahaha. I was waiting for @Bill Gulley to see this one. LOL I always get a kick out of what you have to say :)

Unless they are willing to take a substantially lower offer , I personally cant see it working. Is there any improvements you can do on the property where you can get 2/1 or better on your money?

I would recommend listening to the 2nd podcast with Karen Rittenhouse. Her first sub to deal if I recall was pretty cool in which she did a sub to deal AND the owner paid her to do so. What I am getting at is maybe you can get the property closer to 70k that means they would have to pay you any difference between that 70 and what is owed.. I would guess 83ish if they only had it a year. Then if you could use that 13 or so to improve the value of the property an additional 25k or so you could then flip it and make your profit and get the property out of the owners name completely.

Just another option to keep in mind.

They might not be that motivated right now but after they start taking those drives every day they will become more motivated and will do what they can to be done with it.

Worst case for you right now is the deal doesn't work , but atleast you tried its better than doing nothing. Maybe they will have to hire a PM and have them rent it and they move. In which case if they dont like being a long term property owner they may call you back and decide to take a lower offer.

By no means do I know much about this subject other than what I have read or heard so keep that in mind.

My understanding is that the bank will value set on the properties worth by either having an appraisal done (less likely) or valuing it themselves in a cheaper way.

A lot will depend on this.. If they have someone go out to the property and check it out and it is valued at 195,000. my understanding is in a lot of cases they wont sell at less than its worth. Not all but most. Keep in mind that you can contest their values by your own supporting docs to get the deal.

Best of luck . Hopefully this gets more posts to help walk you through this. If not there is a ton of info if you type it in the search box above.

What are your intentions ? Hold it for a rental for a long time? If so a sub to might not want to be the way to go due to all the regulatory issues and acts. Just because they want 85k doesnt mean they have to get 85k.

Life happens to people but if you acquire this property with no equity in it your setting yourself up for some hurt down the road.

You need multiple exit strategies if things go south. What happens if you need to sell and you paid full retail for it? now you will be the one taking a loss.

Just a little of many things to think about.

May want to consider a business entity maybe a LLC?

I would have to say talk with a CPA on this for your specific circumstances.

If you are purchasing all cash with no financing, IMO your biggest objective is to cover your butt since your the one with all the skin in the game therefore have everything to lose. So whatever you can do to minimize your exposure would be best IMO.

Great Blog @Denise Madrid ! It is so true how people think affects what they do and what they get out of life.

Glad to see you are on your way to your goals. Keep it up!