All Forum Posts by: AJ Leman

Hi @Jason Hodges,

BP has a number of articles on this topic.  Here is one I found: https://www.biggerpockets.com/...

Not sure if that is what you are looking for? Guessing you are trying to streamline your process? 

Best of luck!

AJ

Hey @Joseph Crayton,

We have a number of tenants with poor credit.  In my experience, the previous landlord's reference is better than a credit score.  Some landlords will not issue a reference, and in that case, we are more reticent if bad credit is present. 

Good luck!
AJ

Hi @Tara Lindgren,

We have done a number of seller-financed deals and we always use our attorney.  I think you could use online forms, but I think it is worth it to make sure it is correct.  In my experience it is not a lot of money - maybe $250 to $500 for the contract and promissory note.  

Good Luck!

AJ

Greetings @Salvador Benavides!

Here are a few of the ways we have structured seller finance:

1. Seller carry back: The seller holds back the down payment and you obtain the rest of the purchase price using a bank note. This is nice as the seller gets the bulk of there money (especially if the houses are paid off) and you don’t have to put anything (or all 20% down). Downside is you are highly leveraged and cash flow could be an issue.

2. Repair Credit: You agree to pay $5k more per house then what the seller is asking, however at closing you get this money as part of a ‘repair credit.’ The houses have to appraise at that level, but they ‘usually’ appraise for the sale price. This would give you $75k in cash use to rehab/pay a bridge investor. Your loan costs will be a bit higher.

We have used both of these methods to varying effectiveness.

Good luck!

AJ

Not sure, but my brother does a lot of business in Danville. He would know who to call. Give him a buzz: (217) 778-5320. His name is J.

Best of luck,

AJ 

Yep - sits your deal. So you want to make sure everything goes to plan.

Paperwork can be handled by the attorneys, but if you’re talking about equity splits it’s up to you and your investors. Currently we are in a deal where we get 80% equity and our investors (who are putting up all the money) are getting 20%. Usually it is the opposite of this with investors getting the lion share of equity. However in this case all the investors are Tapping personal lines of credit for their share of the money, so it’s a bit unique.  Every deal is different so it can be tailored as needed.

Hey @Preston Davie,

In my experience the investors don’t have much interest in stealing a deal, or running it, etc. That is where you come in! They are looking to park money. I’m guessing you’ll put no money down because you are finding, organizing, and managing the deal. So your equity is all based on that. They get a percentage for putting in the cash and you get a percentage for all the work you are doing. Even if you aren’t managing it yourself, you’ll need to manage the managers. Best of luck! Hope it all works out!

AJ

Hey @David Pare ,

If it’s not on the market you could just write the owner a letter and ask if they had any interest in an offer? I’ve had good luck with this method. And if they aren’t ready, who knows, they may be soon!

Best of luck-

AJ

@Melissa D. Great deal! Nice work!

Do you plan to keep growing your portfolio?

Best-

AJ

@Julio Castro welcome to BP!

Here is a nice list to get started:

https://www.biggerpockets.com/blog/wp-content/uploads/2018/11/Best-Real-Estate-Books-Ever.pdf

Good luck!

AJ