All Forum Posts by: Adam Feick

@Tyler F.  Without understanding what the income and expenses are for the property it's hard to offer you other options.  I will say, since the seller is 90 I don't know why she would want to finance a property for anything longer than 5 years.  Unless she has heirs and she wants them to receive payments, but this is a long shot.  

Instead look at structuring your terms to get the principal paid down quickly in 3~5 years, with a balloon payment at the end of the term.  That will typically allow a 5~10% down payment plus principal paydown of another 10%.  When you go to refinance at the end of the term, you shouldn't have to come up with much capital.

@Elizabeth Martin

Consider asking in the Dayton area FB groups.  You'll find many recommendations there.  Here is a recent list from other investors.  I have not personally used any, so please do your own research.

LimaOne,  LendingHome aka kiavi, CorevestFinance, nationwidebcg, daytoncapitalpartners.  

@Andrew Kata  Consider having your grandparents getting a cashout refinance for the amount they need, then you purchase the property from them with a wrap around mortgage and they owner finance the remaining equity.  This method would be very little money out of pocket for you and get them what they need.  Let me know your feedback.  

@Drew Sygit  Thank you for the response and providing a link to your PM series.  I'll definitely check it out.

I agree with you, that assuming all PMs work the same is a big mistake.  It is definitely a good idea to get the PMs lease and the contract between owner and PM to understand what is included.  One big difference I find is in-house maintenance versus out-sourcing all work.  

Again thanks for sharing the advice and info.

@Kaleb Packer

Yes I am under contract on 3 of the properties from the large portfolio. 

Thank you for the PM information.  The properties have been mismanaged for a while and the new portfolio owner is transferring PM to Alpha Omega I believe. I’ll be calling them and Jemm. I know Jemm and one other PM company from Ashland have rentals in Willard so I should be set. 

If you have recommended handymen or contractors in the area let me know. I have already found a few that will work for now, but referrals are always appreciated. 

I am under contract to purchase a few properties in Willard Ohio.  I am looking for any recommendations for a property manager.  

Possibly coming from Norwalk, Tiffin, Mansfield, Sandusky or Ashland areas.

Thanks for the help.

@Aaron Lewis  Hi Aaron, I'm also in Ohio.  I take it you have used the local county auditors website to look up the current owners name and mailing address, if it isn't the current property.  This is a great starting place.  Next comes using google with the owners name.  

Their are many website out there that will help you look up possible current and old phone numbers.  

Finally you can use a skip tracing service to help you locate additional phone numbers to call.

Remember if it is difficult then very few people are doing it.  Good luck!

@Brett Eskew  It sounds like the interest rate is set at 5%.  When you calculate the payment amount you would use a term of 30 years or 360 payments.  

A 5 year balloon means that at the end of 5 years, you would need to pay the balance off or refinance it.

Hope this helps.

@Francois Turgeon  Call the owner and ask if they considered selling and would like to hear an offer for the property.  Gather the information from them, and then let me know you need 48 hours to put a few options together so they can choose which option sounds best to them.

To calculate seller financing:

1.  Start with the rent that you would collect.  

2.  Subtract out all the expenses (not the mortgage).  

3.  What's left is you can pay the owner (monthly) and your cash flow.  

4.  Start playing with terms 1~30 yrs, interest rates, down payments.  

5.  Try to offer 3 options to the seller (cash/hard money), short term (1~3 yrs), and longer term (4~30 yrs).  The longer the term, you should be able to offer more $.  

@Kevin Bledsoe  I appreciate the detailed feedback.  I agree with your numbers and came up with a purchase price range of $120,000~$130,000.  I offered $120,000 and was turned down at that.  I plan on countering with a little more.  

I had also offered the full asking price with seller financing.  He turned this down as well, but gave the feedback that he really thought about it and liked the idea.  I will ask him what he liked and didn't like to see if we can work something out.