All Forum Posts by: Ben Roberts

@Michael Swope I'm actually sitting on a deal just like this right now.  We should talk.

@John Chapman Thanks for the detailed response.  Trying to up my game and this advice will help.

@John Chapman What sort of experience and/or reputation did the wholesaler have?  What do you think that person could have done differently so prevent this sort of thing?

@Sean Tagge A title company is one of things that I'm looking for / have questions about.

Does anyone have any experience buying subject to owner financing in Memphis? or anywhere in TN?  I've got some specific questions and would really appreciate a little guidance.

@Douglas Skipworth An important distinction.  Thanks.

I know they manage but I thought they sold as well.  Thanks.

@Sean Dail  I guess the question is are you looking for turn-key? or do want to buy, rehab, and rent?  I haven't bought anything from the Land Bank but the properties there tend be left overs from tax sales.  You might want to get on Civic Source and look at properties there.  If you're interested in Turnkey companies, you might also look at Memphis Turnkey, Memphis Invest and CrestCore.  @Alex Craig @Curt Davis @Douglas Skipworth know the big players and could probably offer you much better advice.

@Sean Dail welcome to BP!  If you ever need some boots on the ground, please let me know.  I am a wholesaler in Memphis and I've done leg work for other out of town investors.  Meeting with seller, taking pictures, checking out neighborhoods, etc.  I am always looking for new contacts and always happy to help. 

@Jeffery McBride, 

Assume for a minute that you can get about the same interest rate on a conventional mortgage in 2 years. +/- 1.5% which has been the high/low swing over the last 5 years (Check it here)

All things being equal (which may or may not be a fair assumption) then you have to ask yourself one question.

"If I buy this property, will I have made enough money by March 2018 to cover the additional expense of buying now?"

Buying the property now costs you additional $7,000 plus about 4%.

Let say that at $150,000, with 20% down, and %3.9 interest, over the next 17 months (Nov'16-Mar'18) the house cash flows, $300/mo after vacancy and cap-ex.  That's only $5,100 in profit.  That doesn't cover your additional closing costs on the bridge loan, much less the higher interest rate.  

In order to just cover the $7,000 closing costs, the property will have to cash flow $411 after vacancy and cap-ex.  Will this home do that?