All Forum Posts by: Charles Carillo

@David M. Hagley, Jr.

Great question; seller financing is definitely the way to be leaning in this market. Speak to your RE attorney about structuring after you have some sort of verbal agreement from the seller but I would tell the seller you are going to invest X amount into the property within the first 90 days and that you want your down payment to reflect that (down payment - X). So if a $1mm property requires $100,000 worth of work; maybe tell them $100k down and $100k into rehab. Give them a list of the work you are doing in 90 days and what a licensed and insured contractor has quoted you. For example; roof $20k, HVAC systems $20k, hot water heaters $5k etc. Selling point is hopefully his value is going to increase to possibly $1.1mm+ once the work is down which will have him sitting at ~80% LTV (if you can get it rented etc.). I would show them proof of funds that you have the money for the down payment and the work. Lastly, write the debt with the longest term they will accept with no prepayment penalty.

@Corey Depuy

The assignable contract is actually a contract to purchase the property (along with the ability to assign it). A contract with a Realtor to list a property is a different contract and situation; usually for properties ready for the retail market.

@Corey Depuy

The assignment contract transfers all of the the rights to purchase the property from the assignor/wholesaler (person who has the property under contract) to the assignee/home flipper/property buyer (person who the property is being assigned to). There are all different types of assignment contracts out there. You can speak to your RE attorney to verify the contract you find online is assignable and will work for what you are using it for.

@John James

Honestly, there is no good that can come from not having money when investing in real estate. Real estate is a very capital intensive business; not only when you buy. You need to have reserves for repairs, reserves for capital improvements etc. There is a reason that a bank requires and verifies your post closing liquidity. What happens if you are just scraping by and you need a $3,000 furnace installed within 24 hours when it is 0 degrees outside? Lastly, in regards to purchasing with 0% down, what owner is really going to believe that you will keep your end of the deal with no skin in the game? Would you ever finance a 4-plex or 10-plex for someone without a down payment? I would only consider this if the buyer was going to use the down payment funds to invest into the property within the first 90 days.

@Abdoul Guisset

I believe that when investing out of state it is most important to put together your team first before looking at properties. Normally you can find most of your team after finding a broker and using their referrals.

@Paul D.

The Tampa market is great however there are not too many duplexes or triplexes like you find up north. These properties I do find are in less than desirable areas or in expensive areas; not great for living in or renting out.

@Steven Scarpa

You are most likley not hitting the 1% rule in Southeast Florida, especially Miami. I prefer multifamily properties. I feel that more income streams/units are the best scenario if the property is purchased correctly. With condos you need to deal with HOAs and with single family, it can be very expensive if it is vacant.

@Audrey Moore

PMI is one reason but there are several others; pay off your home faster, likely get a lower interest rate, a better chance at getting a mortgage, make smaller monthly payments, you will also look like a stronger buyer to sellers. Also, there are less fees with a conventional mortgage.

I would just make sure there is language in the new lease that supersedes the previous lease. Speak to your RE attorney (that prepared your lease) if you have any questions.

@Vincent Franzese

If you do not want to pay the monthly fee, just buy the Quickbooks physical software for a one-time cost (you will need to upgrade every few years). If you are setting up an entity, Quickbooks will be a small portion of the fees you are incurring.