All Forum Posts by: Mike Terry

Hi BP community, I would like to request your help.  I have an elderly neighbor that I have known for 15 years.  She has recently been admitted to a memory care facility.  Her home is free and clear and her sister wants to sell it.  They have talked to a realtor but have not signed anything.  I have run it through the fix and flip calculator and the rental calculator and the results are pretty bad for her.  Her sister needs the money to pay for her care.  I don't know her financial ability to pay, but do know she has military spousal benefits.  I think I would suggest some type of owner financing may allow me to pay more because the challenge is interest rates and financing costs.  If you can lend some expertise in the area of owner or creative financing I would appreciate.  I am an experienced investor with 10 plus flips under my belt and a rental portfolio of 27 doors, but I have built it all with conventional or commercial financing or cash. Please help me help her!

i am expecting sideways general interest rates over the next 12 months.  Fed appears a little more cautious.  Momentum in mortage rates is down and stabilizing same with treasuries.  Employment is the most interesting thing to me right now.  Tech is pulling back, but most industries are still competing for skilled workers.  The weakest hands in the economy will take some hits and some opportunities will arise. I am trying to ignore the doom and gloomers.  Good luck everyone.

 "Recession Proof" careful here.

if you want to save the deal.  talk to an attorney.  A contract is a contract and should be inforceable.  You will need to consider the cost of litigation and an attorney and your contract will spell out what those costs are and who is liable for them.  If there is low risk to you runnning up big costs it may be worth fighting the seller.  Engaging an attorney may also help inform the seller of their obligations and costs related to not performing.  An intial consoltation with an attorney should be free or very inexpesive. Good Luck.

Try small communities in Southern GA.  It's close enough to you that you can get there and purchase prices are not like Florida 's.  Macon, Thomasville, Warner Robins, Valdosta. All are affordable markets to look at.

Wholesale the deal to a cash rich investor. Take your fee and save towards another deal.  There is always another deal.

yesterdays 30 year average mortgage rate was 4.99%.

@Roy Cleeves 

are duplexes double the price? How does this help?

@Vivek Bhavsar Ontario is a the beginning stages of a very serious housing crash... yes crash.  The impact could impact the entire province.  The decline in The GTA is shocking. 

"in February the average 416 detached was fetching $2,073,989. Last month that became $1,515,763. The difference of $558,226 is $111,645 per month. The decline in that period of time is 27%. In the last serious housing crash (which started in 1989) it took three years for the market to shed 32% – so you can see we’re now on Warp Speed." SOURCE: The Greater Fool Blog, 8/5/2022

I would not be buying anything in the province unless seriously discounted with significant padding for greater decreases.  Ontario Cottage county is beautiful and will recover eventually, but a short summer season and low demand in winter (unless close to skiing) I struggle to see how to get to a profitable occupancy rate. Proceed with caution.