All Forum Posts by: Account Closed

I suppose. But I would be uncomfortable giving a 15 yr loan to an individual I don't know. Too much can happen in 15 years and suddenly your checks stop and you have already lost control of the property.  But I guess then its no different than buying a note and carries the same risks and rewards. 

You know its time to get out of the market when people living in a desert surrounded by unlimited land think the market is too overpriced and want to invest out of state!. Pheonix used the be the place to go to for investors from the coasts!

You need a larger home. It may or may not have to be a $300K "dream" house but if you can easily afford it why not? The point of life is to enjoy the journey. Obsessing over the number of "doors" or amount in your bank account or net worth has no value in an of itself. Its value is in enabling you to live you life to its fullest, no matter how you define it. There is a point of "enough". Learn to recognize your "enough" or you will put yourself on a never-ending treadmill of your own making.

The biggest problem I see from the sellers side is the exit. I don't think most sellers want a 15 or 30 year note. So after 3-5 years the buyer needs to be able to refinance. What happens when they cant? Seller can theoretically call the loan I suppose (assuming balloon) but then has to go through foreclosure to get the property back. Meanwhile the buyer is also in an unhappy position.

Now if the buyer has good credit etc to start with why do they need seller financing in the first place.

What am I missing here?

Its not a personal attack and about you being new. Its about the whole model of wholesaling.It is pretty much illegal in most places, it is hardly ever good for the seller and depends on uninformed or desperate sellers (mostly), it is deceptive because most wholesalers pretend to be cash buyers when they are clearly not. And for me personally they annoy the crap out of me by calling and texting to "buy" my properties.

So you got some poor seller to tie up their property in a contract with you. Meanwhile you certainly have no resource or intention to close nor do you actually have access to people who do. On top of that we don't know if the deal is even any good or not. Glad your'e excited but your seller is getting hosed.

@Steve Vaughan I know what you mean. The final straw with my PM was when I got charges a service call because the tenant didn't know how to set the fan speed on the AC! 

I would spread $1MM over about 5 projects. You can split between MF apartments, new developments and maybe hard money lending/notes. This is similar to what I have done.

A 1% property and 50% expense ratio gives you a 6% ROI. If your cost of money is equal to 6% you get a 6% COC leveraged return. If your cost of money is 3% and you have 80/20 leverage then 80% of your money is earning 6% while costing 3%. So you are getting an extra 3% on 80% or another 2.4% for a total COC of 8.4% leveraged. Thats about the best you are going to do on a 1% property.

@Alberto Nikodimov This js commonly done in syndications. The GP does the work and LPs invest the money. Typical split is.70/30 for the investor after a preferred return usually around 8%