All Forum Posts by: Adam M.

Uhh you won't be a bank but you do face issues when it comes to securities law. Get a good lawyer that has done it before. Look up your states blue sky laws. You may have to get your Series 7 and Series 63 if you want to raise money from anyone that isn't immediate family. You might also run into issues on whether not you can take money from a non accredited investor. I'm no securities lawyer.

Being near Cerner is definitely a plus. Hire a ton of young working professionals that don't have the money for a down payment but have solid income and could pay premiums. I know because 20 or so of my friends work there.

Also basically all these solutions will likely have some free trial period so sign up and dive into them as deep as you can and try them all out.

As someone who is educated in Finance I LOVE EXCEL. As someone who is also educated in Computer Engineering I absolutely cringe at the idea of using it as a data storage solution. At the end of the day Excel is a data analysis tool and shouldn't be used as a storage tool. I am surprised Salesforce did not make it in here.

Nice. Seems like a lot of money comes into Kansas and other midwest states from people living in higher cost of living cities. I was showing my friend a 950 sqft house in Lawrence that was listed at $120k and then showed him houses in Boulder with the same spec and they were $400-500k

Also @Scott L. you outta read over this.
https://www.biggerpockets.com/renewsblog/2014/01/1...

You might be able to avoid a balloon payment if they do more than 1 per year.

@Christopher Phillips They will pay capital gains on the principal if I am not mistaken and the interest revenue would be counted towards their income. Obviously talk to a CPA that is familiar with this type of situation OP.

Agree w/ @Michael Henry Lease option sounds like the best option. You could take some upfront or on top of their monthly rent (or both). They can renew at the end of the year, buy, or walk and you give them their money back. You might find some stuff out about her while she is renting that might make you less or more likely to do long term financing. It could go either way.

Is the 5 year w/ balloon what the owner came to you with or what you think the terms should be? I'm just curious as to where you got those terms. I would try and secure a longer term note. If the property is a value add I would try and get less down with the expectation I am investing in some rehab. Owner financing is beneficial because it is really flexible but the downside is that as the borrower you tend to have less legal protections and it is easier to foreclose on you.

Have you done a monthly budget yet? You gotta make sure the monthly CF work. This seems a bit tight from a cash flow perspective especially if you are gonna pay someone else to do the maintenance. Note is really short and is eating up your cash. Try for a 15 year amortization as it would free up $110/month at least for the first 5 years. Your DSCR is gonna be below 2 which is not very good. Debt service is gonna take up 36% of your gross rent. This is owner financed so it can be really flexible. Just remember you have less legal protections (generally it depends on the state) when it comes to private mortgages so foreclosures can happen quick.