All Forum Posts by: Elenis Camargo

Hi @Johanna Castel. I had a hard time understanding this at first also. It means they will give you 90% of the value of the property, so you'll have to put in 10% or you'll have to get the property at 10% less than it's current value. Also the points, you'll have to put money for that. 2% of the purchase price I assume. The 8% rate sounds pretty standard from what I've seen. I started off looking for a no-money down solution as well but all hard money lenders seem to want something, which is understandable especially when it's our first time flipping. Hope this clears it up a bit and that it works out for you!

I intent to pay off each property I acquire. The rationale behind this is that I will have almost 100% of the rent as cashflow and the property should appreciate a good amount by that time. I can take out HELOCs or a portfolio loan once I have more equity in it. Or I can simply sell it and buy more properties. 

@Rivy S. There is a great point in what @Rae Copitka said about the pictures!! If you are trying to appeal to regular home buyers, the image is everything. Hire a professional to take and edit pictures. I had a PM take them for my rental and look how nice they look (link below). Your home is bigger and nicer on the outside than mine, but the pictures don't show it. It's true what you said about that the rates don't explain the lack of foot traffic coming to the property. It's all about the description and the images. Maybe also getting a new realtor.

https://www.zillow.com/homedetails/2333-University-Blvd-N-Jacksonville-FL-32211/44519902_zpid/

@Rivy S. Understood. I was looking at the rental comps in the area and they seem to be around $1500 for the same size house as yours. Lets say the buyer puts down 20%, their monthly payment at 10% interest would be $1,228 per month plus taxes, insurance and lawn maintenance if they don't do it themselves. So right there the terms won't work for an investor. You are solely relying on someone who wants to buy to live there and on top of that it has to be people with either bad credit that cannot get a house through traditional means. Many of those people do not know what owner financing is either. Even many realtors don't know what it is. 

What kind of feedback did you get from the potential buyers who came through? Were they looking to live there or investors? 

I would explain a little more in the description to show them what owner financing is. See if your realtor knows of any way to reach out to these buyers that cannot qualify for a conventional loan. They do exist, they are just a little harder to find I think.

@Rivy S. Does seem like a standard one. I've contacted a few about doing owner finance and they ask pretty much the same. The interest a little lower but still, you're not asking for 30% down like some ask.

Is there a reason you don't want to put a tenant and hold? Is it because you don't want to deal with managing a tenant or is it because you need the 10-20% down payment money? Are you also open to bank financed buyers or you're purely wanting to do owner financing? Asking all this to see if I can help come up with some ideas. 

@Rivy S. The rehab looks nice. What are the deal terms you are asking when an interested buyer comes along? Or has no one had interest in the property at all? A lot of us on BP are looking for owner financed deals, but it all depends on the terms you're setting. Let me know!

Thanks for your input @Mark Fries !

@Andrey Keller I was not familiar with Jacksonville at all. My sister lives there and our friend that's the realtor but we looked for properties ourselves, pretty much looked for what we could afford then did Google street view, read about the area, looked at sales and rental comps. Jacksonville is the biggest city in the US, land wise, so even my sister who has lived there all of her adult life (20 years now) does not know all of the areas. Are you wanting to invest out of state as well?

Hi Felix! What are you thinking your roadblocks would be? If you have good credit and a good debt-to-income ratio then you should be able to get another mortgage. Of course you would need a down payment for the home. It really all depends on that. I purchased a rental property when I don't even own my own home, so it's totally possible.

Hi Pike! I've been wanting to do the same. I looked on Zillow for houses that said "seller financing" or that were for sale by owner or that said "motivated seller". When I reached out to them I wrote the below but many of them wanted a 20% or 30% down payment and were charging higher APR than a bank would. I qualify for a traditional mortgage but was wanting to put less money down. Anyways I only contacted a few people. If it was listing agents, they usually would not reply. I think a phone call would work better for them. Also just about continuing to contact people and eventually getting one. I know a lot of investors use direct mail for this and it could work better than what I was doing. Here was the email I sent:

"I see that you are the listing agent for XYZ. I am very interested in the property. Would the seller consider receiving a down payment now and monthly payments over the next 3 to 5 years, with the full balance due then? Please let me know if you're free to speak about this on Monday or Tuesday."