All Forum Posts by: Elliot Angus

 Hey Bernardo, any luck getting around this? Do you still use batch or have you changed platforms?

 Again, that is if they decide to go forward with the sale, I guess worst case is that I obtain the equity and a mortgage at 3.75%...

You’re absolutely right Chris. The down payment to acquire this sub to is $25,000.

Personally I passed on the deal, but the opportunity was to take over the deed with the existing rent to own tenants.

I recently came across an interesting opportunity and thought I’d share the details.

Mortgage Details:

• Outstanding Balance: $70,000
• Fixed Interest Rate: 3.75%
• Monthly Payment (PITI): $950
• Loan Maturity: May 2045

The property’s current market value is around $225,000, leaving significant equity on the table.

Tenant-Buyer Situation:
The property is currently occupied by Rent to Own tenants. Apparently they handle all property repairs and maintenance independently and have maintained a perfect payment history, even throughout the pandemic.

Lease Option Agreement:

• Effective Date: November 1, 2022
• Terms:
• • Purchase Price: $165,000
  • Non-Refundable Down Payment: $10,000
  • Lease Term: 3 years (ends October 31, 2025)
  • Final Payment: $158,000 balance due upon term completion
  • Monthly Payment: $1,150 (no rent credits)

I didn't see this to be a deal because if in a the best case scenario my $25000 would walk away with 2400 which is about a 9% ROI. Now the 9% doesn't seem to be a terrible deal, but then I calculated the risks involved. This sort of deal could go south very easily and for that reason I stayed away.

What would you do?

Hello, I am looking to purchase part of a portfolio. The scenario is: The seller (ie. John) currently owns 6 properties. John is looking to sell 1-3 properties now and reinvest some of those proceeds into the remaining 3 properties. In 3-5 years, John is looking to sell off his entire portfolio using a deferred tax 1031 exchange. John may find some difficulty selling an entire property package in such short amount of time. 

This is where I believe I can come in. I want to present Investor A with a hefty down payment to cover improvements of his other assets, while also offering owner finance terms so that in the 3-5 year period he can “sell” the properties to me which I have been paying off throughout the time, so that investor A can successfully 1031 into another investment at that time. 

Questions: 

who can I reach out to for proper terms and complete understanding of 1031?

Would investor A be able to defer capital gains in a situation like this?

What other options do I have to acquire these properties?

Any and all information will help!

 Edit: This really doesnt make sense at all. Thanks guys.

Hey everyone,

I thought of this hypothetical scenario where I would do a seller-financed deal on a property valued at $250,000. I plan to put down $100,000, leaving a seller-held mortgage of $150,000 at an 8% interest rate with a 3-5 year balloon payment. 

The plan is to: 

- Make regular payments on the seller-held mortgage for the agreed-upon term.

- Pay off the balloon payment at the end of the term.

- Immediately refinance the property with a traditional bank mortgage to pull out a significant portion of equity. 

Does this strategy sound feasible? Are there any potential pitfalls or risks I should be aware of? I'm concerned about potential issues with refinancing, such as property valuation, interest rates, and lender requirements. Any insights or advice would be greatly appreciated! 

Thanks, Elliot