All Forum Posts by: Eric Mayer

I don’t really use Cap rates at all as it doesn’t factor in my debt payment. I’m mostly interested in my cash on cash return. If I invest $50k and cash flow $700/mo, I know that’s about a 17% return on my money in the first year in rent alone.

I might consider it if the cost of the project /future projects goes down significantly. If not, there is no point in giving equity away.

So was this guy naked for the Valentine’s Day showing or what?!

We definitely have way more inventory in St Pete than other areas close to Tampa. I believe there are a few large investors selling off portfolios and locals would rather own in Tampa so property in St Pete won’t get snatched up right away. St Pete can have sort of a “ghetto” connotation, but it’s changing. Just research the exact areas you are looking at.

Are you trying to show proof of funds without actually having the funds? If you already have a buyer lined up, be honest and show your buyer's POF. Wholesalers with no money or Plan B who make offers are the reason wholesaling has a negative connotation.

You would no longer be responsible for any repairs at the property as you would no longer own it. You can mitigate your risk some by getting a healthy down payment so the investor has some skin in the game and won’t want to foreclose it back to you. 

@Jack B. All seller financed terms are negotiable and I often get better terms than a bank would give me. My down payment is always less than 15% for starters. I’m about to close on my 13th owner financed door. 13% down, 5.5% interest amortized over 30 years, 5 year balloon. I’m working on selling my conventional financed properties just to pursue owner financed deals because I can get twice as many doors.

@Account Closed How do they get around the Due On Sale Clause? Or is this for older mortgages only? Thanks.

I definitely couldn’t do it with a roommate.  Imagine the applicants you will get for a bedroom in the ghetto.

How did you FHA a flip? You're supposed to live in it a year. Are you sure you are allowed to sell it? Congrats on the property.