All Forum Posts by: Brian Cameron

Thanks for the great resource @Brian Gibbons 

Hi @Jared Vidales 

I am looking to sell my portfolio of rentals at full retail.  As a new investor you should be looking to purchase at a discount (especially if you can purchase cash and use credit to refinance).

I had considered putting a package of between 5-10 homes for sale all 100% leased with paying tenants. However, at the current price to rent ratios, I don't consider this portion of Phoenix to be appropriate for buy and hold investors. For example, 1 SFR 1360 sqft rents for $905/month and would sell retail at $130K & 1 SFR 2050 sqft rents for $1085 and would sell retail at $155K. I am not purchasing at these prices for buy and hold rentals.

Does anyone think there is a market for this?

Brian

Hi @Bob E. 

I have considered doing the owner financing option before. I have five issues with owner financing but first a little background.  My portfolio is centered around 51st and Baseline in South Phoenix.  I would love to due owner financing if I could get around a few of these issues.

Issue 1) It is extremely rare to find an interested buyer that has more than a first months rent, security deposit and $500-$1000 of a lease purchase option.  With all the low money down mortgage programs, it seems that any buyer with more than $4K would rather try to purchase with a cheap traditional mortgage.

Issue 2) I have not found that buyers are interested at the 10-12% interest rate I would want to get.

Issue 3) If I finance a property with only $3K down and the owner stops paying, I have to pay for the foreclosure and repairs.  I would want at least $10K down (see issue 1).

Issue 4) Taxes on owner financing are at ordinary income rates

Issue 5) I feel I can due much better than 12% return with my money available

If you have ideas on how to establish owner financing I would love to talk to you.

Thank you.

Brian

Hi.

I first got into real estate by being sold a blue ribbon deal on a Go-Zone property in Alabama in 2008.  It's been a solid money loser ever since and I wish I had BP back then.  I took a business trip to Phoenix in 2009 and was shocked to see how each real estate was.  I started buying and my partner and I set the goal to get 20 rental properties.  We completed this goal in 2012.

I also did some flipping and made some extra money on that. I also used my ROTH IRA to purchase some real estate in South Euclid Ohio.

I am currently looking to sell off a good portion of my SFR rental portfolio via lease options and keep doing flips until I find the next big deal.

Brian