All Forum Posts by: Daniel Pessin

Hi everyone, I’m trying to understand the Pros and Cons on determining which is better, Owner Financing or being a Landlord.

From the research I’ve done, this is what I’ve found so far. I’m not 100% sure if this is accurate so any input would be appreciated.

Pros of owner financing:

1. The occupant will take better care of the property since they own it

2. Occupant pays for the property taxes and insurance

3. Occupant pays a higher interest rate at 7%

4. Because of the way seller financed mortgages are structured, you don’t incur capital gains tax until you start collecting on the principal of the loan, which, in a 30-year loan, allows you to defer capital gains tax for many years. This assumes, of course, that you fall into certain categories under the Dodd-Frank legislation.

Cons of owner financing:

1. You cannot refinance because you are not the owner. So if there is equity in the property, you do not get it.

2. Foreclosure is more difficult than eviction.

The Con I am most concerned with is not being able to refinance since you are not the owner assuming you transferred title during the owner financing. Is there a way to retain ownership and still get the other benefits?

Looking forward to hearing everyone’s thoughts and feedback.

Hi everyone, I was wondering if anyone had an automatic payment system setup with their tenants to receive monthly rent payments automatically. This way you don’t have to physically pick up rent or wait for them to mail you a check. If anyone has experience with this or recommendations it would be appreciated. Thanks!

Hi everyone, the last 8 years I mainly focused on a company I co-founded that developed mobile apps. I was able to save up a good amount of capital and now I'm looking to switch careers and get into real estate investing full time. I have my realtors license and I have been focusing on wholesaling the last 5 months in the south Florida area. I started wholesaling in this area first because I live here. I've been able to assign 3 deals successfully and got a couple listings as well. Now I'm interested in virtually looking for deals in the midwest area. I'm planning on finding deals, and then "cherry picking" certain deals that we can fix and flip it, or buy and hold. I don't have a lot of experience on the fix and flip side, so I know connecting with the real people for guidance and building a team on the ground will be critical for success. If you have experience in any of the midwest areas, please reach out. Thank you!

Thanks for the valuable insight Clint. I don't have a lot of experience with STR arbitrage, but I'm trying to learn more about it. Hoping for more value and feedback on this thread.

Thanks for the advice Jeremy. I'll share the photos after I get them. Also, I'll try to find a fire restoration company to walk the property.

Hi everyone,

I'm a new real estate investor / wholesaler.
I recently came across a property with fire damage. I have not seen the property yet. 
The seller wants to sell for 120k.
Here are the property specs - 4 bed / 1.5 bath / sq ft living 1201 / fire damage

ARV Comps - 270-282k
Comps Link - https://matrix.southfloridamls.com/Matrix/Public/Portal.aspx?ID=3439233773

I don't have experience with pricing a full gut rehab. 

What price would a cash buyer be interested in buying this property for knowing there is fire damage?

Also, when I'm at the property, is there anything in particular I should check for due to the fire damage?