All Forum Posts by: Drew Graham

@Michael Ablan I was wondering if it had to be a primary residence. I was looking for that information but couldn’t find it. I would assume they would be happy with someone making the payment.

Good morning BP!

I was approached by someone who is moving to another state and would like to sell their house. Unfortunately, they owe about as much as the property is worth ($270K). After closing costs and commission, they would be in the hole $20K. Their lender said they could have someone else assume the loan because it's a VA loan. I'm active duty military and would qualify for the VA loan. I'm interested in this because it would allow me to add a property without having to put any money down. The home was built in 2017 and is pretty much new. The rent would cover the mortgage and possibly a little more. My thoughts are, I can add a property without putting anything down or any rehab. The area in which the home is located will continue to grow and create an opportunity to raise rents and build equity.

Is this a good idea? What do you see as the pros and cons?

Thanks in advance!

Drew  

@Joe Splitrock Read this book. It has everything you need to know.

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@Jaysen Medhurst Thanks for the feedback! We have around $150K in HELOC and cash. The timeline would be 4-5 months. The $150K is for the renovation only. Holding costs are going to be based on what kind of interest rate he would be willing to accept.

I see your point with the red flag but we would do a thorough inspection before we gave a non-refundable deposit/down payment.       

Hello BP! I'm looking for some creative seller finance proposals to present to an owner who said he was willing to review the offer if it included a large non-refundable deposit.

The situation...

The property: a 3 bed 2 bath advertised as a total renovation or tear down. It's been on the market for 110 days. We've done a walk through and we plan to renovate it. It's located in a great area where homes sell for a high price very quickly.

Current price: $560K. We would be happy around $490K. His agent said he's been offered around $500K by developers but didn't bite. Based on the condition, he can't rent it and has no money flowing in from it.  

Renovation costs: estimated to be around $150K

ARV: around $800K

The couple I'm working with recently completed a reno with a hard money loan. They were successful and turned a profit but it was obviously expensive and we're looking for cheaper financing options. We reached out to the selling agent and asked about seller financing and he said to put together a creative proposal that included a large non-refundable deposit and he would review it.  

I've read the book on investing with little to no money down but wanted to see what kind of feedback I could get from the forum. All feedback is appreciated!   

@Steven Foster Wilson Thanks Steven, I appreciate the feedback! @Jacob Blackett I'm sending you a message shortly. @Kevin M Finley I like that! That's much better than the cost of hard money lender and I'm sure it would be enticing to some of our interested parties.  

What terms do you offer private lenders or what are terms have they offered you?

We have a few friends interested in investing in some of our flips but not exactly sure what the common terms of agreement are. Any feedback is appreciated!

@Patricia Steiner Thank you Patricia, that is helpful!

I recently purchased a rental property 3/2 with a 1/1 loft in the back of the property for the purpose of short term vacation rental, only to find out St Pete Beach is not a fan of that. However, rumor has it, enforcement is based off of complaints. Either way, I would like to be prepared in case I can no longer do short term. I would like to tap into the snowbird market but know nothing about it. Any information would be greatly appreciated. Thanks!