All Forum Posts by: Chance Humphrey

Mostly yours and others recommendations. I need to keep the monthly payment under $2500

Hello friends, 

Im currently in negotiations for a 100% seller finance deal in Grand Junction (Mesa County) Colorado and would like to know if anyone has any recommendations for one. I just need the promissory note as well as the deed of trust and possibly a personal guarantee as i will be purchasing with an LLC. Ive already talked to a few and some said that I as a buyer am not the one who is hiring the lawyer that it needs to be the seller who contacts them? Is this correct or can i as a buyer have the contract written up and send to his agent?

The fee varies wildly between them. 1 asked to take a non refundable retainer that goes toward the billed hours ($2500) another is a flat $1500 fee.  1 is charging $595/hr  another is $495/hr. In this situation is one attorney going to be better than another on a seemingly simple transaction? 

Thanks everyone!

ok so i just sent my offer over, im really hoping i don't offend and get an actual counter offer and not just a "get lost"

I offered $455,000, 10k down, no payments for 3 months, monthly payment of $2,388 and a 10 year balloon, this is basically 5% down and 5% interest. now just waiting to hear back from seller.

Thanks Joe, I agree i am only going to present 1 offer but am looking for the best one to send to start the conversation. The owner is 67 and retired. Im not sure about health or any burdens he has at the moment but to make the deal more suitable for him i put the 5 year balloon so he is not waiting until he is 77 to get his 500k.

He isn't selling on owner finance it was just something he was interested in listening to because i brought it up, so again i'm trying to structure the deal to best suit him and entice him to do it rather than accept a low ball cash offer which i don't have right now. I WANT him to see that he is making 153k in interest in the 5 years ( i would be paying more than this if i were to use a HML or PML). This will be my first "investment" deal and i'm pretty sure i can not use FHA or a conventional loan for this purchase. I do have collateral but will be posting in a separate section looking for $$$ if he decided he doesn't want to do any owner finance.

I will definitely be using a LLC for my purchase thank you for this information.

Hello all. Im really excited to be here and start my ROI journey!

Yesterday toured a really unique property that im interested in buying in Colorado. Its on 2 parcels with a 3bd 3ba 4100sqft house. it has a man made pond on property as well as over 4000sqft of shop space between 2 large buildings. He lived there for 30 years and he owns the place outright but has not lived there in 4 years so the place is in need of some love both inside and out. Asking price is 500k but seems motivated. If he is willing to do 100% owner finance im comfortable paying the 500k and structuring a deal based off of that number. anything less and i will be offering between 435k-465k

Ideally i would like to use this as a STR once its back to its previous glory. but would not be opposed to flipping it if the numbers make sense.

We pitched owner finance and he was willing to listen but would not send his numbers he wanted a pitch.  We don't know right now how much he is willing to finance so i i wrote up a few offers to send to him, can i please get some feedback on any and all of these schedules. 1 is a full owner finance, 2 is half, the others are interest only options, 1 for the full amount and another for financing the down payment. Im also considering asking if he would accept a 6 month up front payment as the down payment and start making payments in month 7 because the house will be under construction for 4-6 months minimum with no income. 

I know there are a thousand different ways to structure seller finance and these were just the beginning of my thought process. Im still waiting to hear back from him as he's retired in the Philippines. Im fairly comfortable speaking confidently about the benefit or "win win" of seller finance but am nervous about offending him. He is represented by an agent as am I and we are discussing the possibility of direct contact but as of now we are going through the agents. 

SO in short (long haha) should I be asking what HIS NEEDS ARE? how much a month or how much up front he needs and then structure a deal based on those figures or should i "pitch" any of these ideas and see if he bites? 

Monthly payment-$2,994, Purchase price- $500,000, 10% down- $50,000, Owner carry- $450,000, 5 year Interest- $153,223.83, 7% Interest, 30 Year term, 5 year balloon (1-5 year extension based on market value and ability to refinance) 

50% FINANCEMonthly payment- $1,580, Carry amount- $250,000, 5% Down- $12,500, Owner carry- $237,500, 5 year interest- $80,868, 7% interest 30 year term, 5 year balloon (1-5 year extension based on market value and ability to refinance)

Monthly payment- $500Purchase price- $100,00010% down- $10,000Owner carry- $90,0005 year Interest- $30,0005 year balloon- $90,000Total Payout-$130,000