All Forum Posts by: Pyrrha Rivers

@Curt Smith I asked the seller if the loan was assumable and he said no. That is when I asked if he would be willing to finance it by taking a small down payment and monthly payments until I can refinance and pay him the balance. He agreed to that but is interested in knowing how soon I would be able to refinance. He did not say no to waiting six months, but I know he needs it now and if I could make it a cash purchase I would. That is the reason I came up with the idea of getting a loan for $50K so he can get his money right away but return the extra by paying for $7K in expenses. So subject to does not work for this seller and the second option you propose gets us back to him waiting a long time to get his money.

I know he would not sell the property if he didn’t have such pressing need right now. He even asked me to please give him the first right of refusal if I decided not to keep the property in my portfolio long term. This is a home he would have liked to keep for his children but he has to make ends meet right now.

I like both your suggestions and will certainly keep them in my acquisition strategy notes. 

Thank you so much!

Thank you all for your responses!

No wonder I didn’t get any answers the first time. Nobody understood the question! (It was so clear in my mind.) LOL

@John Dirgo Deweese Thanks to your questions, here is my attempt to clarify

The owner is willing to take 10% down payment and monthly payments until I can get a loan to pay him off.

Knowing his situation I would like to pay him sooner, rather than later. (His family is in a bind).

I do not have the funds to purchase and rehab the property.

I do have the funds to give him a 10% down payment, pay for the rehab and begin making payments. I am trying to figure out how to eliminate the 6 months minimum seasoning time before I can get a loan on to pay him off.

That is why I was wondering if I could pay him $50K so he can get his money right away and then have him basically return the extra $7K by paying for part of the repairs. I’m just not sure if it is okay to do that.

Does that clarify my question?

Answering your questions:

1. I won’t ask the owner to finance 100% of the purchase because he needs money now or he would not be selling the property. I want to be able to pay him something now and the remainder of the purchase price as soon as possible. I just don’t have enough to both buy cash and rehab the property.

2. From your explanation, I guess “concessions” was the wrong term to use. This seller cannot bring money to the closing. I am trying to see how I can get him all of his money as he would receive in a cash sale but I would need to get a loan and the minimum I can borrow ($50K) is greater that the purchase price ($43K), so I would want him to pay for the first $7K in expenses from the $50K he would receive from the transaction.

3. BRR is exactly the strategy I plan to use. I have done it before but I had enough cash to purchase, rehab and hold the property until rented and then wait 6 months to refinance, get most of my initial investment out minus the repairs and use that seed money again to buy another. 

Thank again for taking the time to help me with this.

Welcome to BP.

Best wishes on your journey.

I had work done by Larvell Hollingsworth of PowerUpElectric and was well pleased with the quality of his work and professionalism.

[email protected]

Hello BP I posted this question elsewhere but got no response so I'm posting it here.

I had a family friend approach me wanting to sell a town home he had as an investment property for a few years. He has fallen on hard times, the house is in a nice neighborhood but in need of repair and the owner is in need of money.

I asked if he would be willing to do an owner finance deal. He said yes, then asked the dreaded question...How do we do that?

I wanted to run and hide under a rock because the only answer my brain could come up with was "I don't know". But instead I said "Let me run some numbers and I'll get back with you". So I'm here to get some help before getting back to the seller.

Here are the numbers:

Price he is asking $43K (to pay off his loan).

ARV Here is what I've done to try and figure this out. Not many sales in the area and just a couple similar properties within the past 6 months. (Didn't ask a Realtor since this is a by owner sale).

County assessed value $47K

Taxes $1160

Comp #1 sold 2 weeks ago for $67K (No interior photos).

Comp #2 sold for $76K in June (Average rehab).

Comp #3 currently on the market for $95. 34 days listed, so it may have to be reduced to sell (Rehab was beautifully done).

Based on these comps I assigned a conservative ARV of $67 to stay in line with the lowest comp.

Owner says it will rent for $750 - $800. Rentometer says $995. I use $800 in my calculations because the home does not have a garage and the bedrooms are small.

Now here is my brainstorm but fear that what I am thinking may not be legal, so I need some guidance. (Is this a brainstorm or a brain-fart?)

• Purchase price is $43K
• I can get a loan for a minimum of $50K
• Can I pay $50K and get $7K in concessions from the seller? (I’m thinking this is not legal and if so want to stay clear from it, but I’m not sure).
• These concessions can be in the form of closing and repair costs to reduce my out of pocket expenses.

This will allow the seller to receive his sale price right away and will allow me to purchase the property for $10K down plus repairs and have a tenant pay for the house.

If I can’t get the concessions and don’t want to use hard money, what can I do?

How can I structure an owner financed deal? (I guess could fix it, wait 6 months and refinance to pay off the seller. How much of a down payment should I offer in that scenario since I have to complete the repairs and wait for the cash?)

Thank you so much for taking a look at this and helping me figure it out.

Thanks @Dan Denton it just occurred to me to work it into my travel plans. It really was such a great experience. 

Do share how you go about it and what results you achieve.

Hello BP. 

I had a family friend approach me wanting to sell a town home he had as an investment property for a few years. He has fallen on hard times, the house is in a nice neighborhood but in need of repair and the owner is in need of money.

Here are the numbers:

Price $43K (to pay off the loan).

ARV Here is what I've done to try and figure this out. Not many sales in the area and just a couple similar properties within the past 6 months.

County assessed value $47K

Taxes $1160

Comp #1 sold 2 weeks ago for $67K (No interior photos)

Comp #2 sold for $76K in June (Average rehab).

Comp #3 currently on the market for $95 not yet sold 34 days listed, so it may have to be reduced to sell (Rehab was beautifully done).

Based on these comps I assigned a conservative ARV of $67 to stay in line with the lowest comp.

Owner says it will rent for $750 - $800. Rentometer says $995. I use $800 in my calculations because the home does not have a garage and the bedrooms are small.

Now here is my brainstorm but fear that what I am thinking may not be legal, so I need some guidance.

• Purchase price is $43K
• I can get a loan for a minimum of $50K
• Can I pay $50K and get $7K in concessions from the seller? (I’m thinking this is not legal and if so want to stay clear from it, but I’m not sure).
• These concessions can be in the form of closing and repair costs to reduce my out of pocket expenses.

This will allow the seller to receive his sale price right away and will allow me to purchase the property for $10K down plus repairs and have a tenant pay for the house.

If I can’t get the concessions and don’t want to use hard money, what can I do?

How can I structure an owner financed deal? (I guess could fix it, wait 6 months and refinance to pay off the seller. How much of a down payment should I offer in that scenario since I have to complete the repairs and wait for the cash?)

Thank you so much for taking a look at this and helping me figure it out.

Oh @Daniel Ryu how I love my wings! LOL

I'll certainly keep in touch. There was so much stuff we were only able to touch on the surface. I'm curious about your forward growth as well as that of the members who I had a chance to meet. So may perspectives!

Hello BP,

Happy belated Thanksgiving!

I want to share with you what I consider a success story in BP networking.

A bit of background about me to put things in perspective for you.

I am a teacher by day and investor by evenings, weekends and summers.

Living abroad in Asia presents a great challenge for my investing in the Atlanta metropolitan area. I have spent the better part of the last year trying to find likeminded individuals in the area to help keep me motivated and to have people around who don’t all think I’m a complete lunatic for investing in real estate, especially from a distance. (This is how many of teaching my colleagues feel). ^^

Reading through posts I came across Dan Ryu’s very successful Seoul Meetup.

I contacted Dan to get some pointers and he very generously encouraged me to start a meetup in my area. I didn’t think it would happen but I tried it and I now have two very nice investor colleagues to talk to. Dan continues to encourage me with ideas to help my group grow.

I live in Japan and Dan is based in Seoul. The opportunity presented itself for me to meet Dan as I was going to Seoul to celebrate Thanksgiving with friends. I thought he was just being polite when he said in his forum posts “if you’re ever in Seoul I would like to meet you.” I felt it was a long shot but I decided to tell him that I would be there. Well, he was not just being polite! He arranged a meetup at a convenient time during my visit and I thoroughly enjoyed spending time with a few of his many meetup members. The conversation was quite interesting, diverse and so thoroughly enjoyable that time flew by. 

I enjoyed it so much that I think that whenever I travel I will try to arrange a meeting with a local investor to share some time and ideas. I encourage you to do the same.

Thank you @Daniel Ryu for the inspiration and hospitality in the Land of the Morning Calm.

Do you have a networking success story to share? I would love to learn from your experience.

@Daniel Porter Welcome to Bp! As you will see, there are so many different strategies and niches within niches that you can spend a sizable amount of your time and energy in the learning phase.

That is important but even more so is networking and taking some action. I have met some really smart people although I have limited opportunities due to living abroad, but still have managed to connect. Just last night, as Dan Ryu mentioned, I had a chance to meet with him and several other investors in Seoul where I am to visit a friend. Now I'm thinking that every time I take a trip I would love to have a chance to meet investors in the area. It was so cool!

Best wishes!