All Forum Posts by: Blake Garcia

What size or price range are you thinking?

With money. ? 

im also curious and waiting for someone smarter than i.

@Neil Aggarwal

Yes $850 would be around the low end rental rate... and with rental there are expenses to consider, but for the sake of it I would still own the house at the end with around $400 a month cashflow. 

Mine was offered $850 minus my bank outstanding bank loan. With no down payment and no interest on any of my equity portion that's alot to risk if their end buyer's or renter's maintenance or taxes were to fall behind. 

My last eviction / repo of that house cost in the $4k range. Lost payments, delays, and 6 guys 4 hours of moving and cleaning of the house.

I'm not bitter and definitely applaud it from the wholesaler side. I just bring concerns for worst case scenario for the seller side that there are risks involved. Not all offers are equal.

On the upside I did get 1 of my bath tubs spray painted sky blue. lol

@Neil Aggarwal

I received a very similar offer. Basically an assignable terms deal. On 95k house they offered full price. $850 per month. No mention of down payment or any interest paid to me.

I assume they would lease option repeatedly and collect deposits while riding my bank loan and 0% on remainder of my equity portion until its paid off.

I have a 50 unit deal that will run in the 10 cap range. I have a friend that's willing to either partner using his IRA or loan from. This would be in the 275k range. What's best method to arrange? Equity Partnership or Debt?

@Sean Kosmann

A little backround on mine. I met the seller through a previous property purchase. He was older with several businesses. His secretaries had to run the books. Leases were ancient. Nothing was remodeled that wasn't from insurance claims.

It started off as a partial owner finance. I went to borrow down payment from bank as a separate loan. Because neither bank nor seller wanted a 2nd place loan the bank took over the deal. 

From my perspective it's 100% bank financing. My loan amount is the full purchase price.

From Bank, it's 80% loan, 20% down payment held at bank as a CD in the seller's name which they can take back as collateral if I was to get upside down.

From Seller, it's a sale with 80% paid and 20% held as a CD to be released once I reach my 20% equity mark in my loan. I did dodge a personal guarantee between myself and seller to cover the possible loss of the CD.

At one point the price was lower, but I came back to the 400k price to do the owner finance. I still believe that I could've saved another 50k on this deal had I originally brought a down payment and financing of my own to the table. I was so amazed that it came together that I shut up and didn't push the limits.

Buildium. It would be a little spendy for 1 unit but definitely make sure to charge the late fees and stick to whatever lease you decide to use.

@Michael Ealy

Exactly, I'm going to refi and hold to avoid the taxes, but it was a great first multi family deal. (Off market through a relationship) I never did that well on houses. Even in rural areas there's a need for good owners and housing. People overlook them, but there's a great opportunity in small communities.

I'd really consider having your financials together and being ready to file taxes ASAP after the new year. The extra 50k will go miles in what you can borrow. I don't think portfolio lenders will look at the primary residence. 

The other option is hard money to get a deal locked in then look to refi both homes with better turns once you have good tax return. You may have enough for a bank statement loan, but that will still be in the hard money cost range.

Check with @Derek M. He arranged a long-shot deal we did together several years ago.  Also, he's from TX so he will be familiar with how to do things.