All Forum Posts by: Eric Mcginn

I’d be looking at 30% down. 
what are the risks? 

I bought 10 acres of vacant land in Joshua Tree CA at the county tax auction. 
I have it listed on the MLS for $39k with an agent. But I also have it listed on FB marketplace and often get inquiries about financing. This sort of property is expected to move slowly but there is demand.
I’m not opposed to the idea of seller financing but I’d want me $14k initial investment as a down payment. 

My question is whether or not I should consider this option to help speed up the sale. I’m not in too much of a hurry and come August I won’t have to pay capital gains taxes at least. But the plan is to sell it so I want to keep on working towards that. 
Are there any major risks involved? Would I keep the deed in my name until it’s paid off or would it transfer to the buyers name and only revert if non payment is an issue? How difficult is it to prove non payment to revert the property back to my name? Or am I thinking of this all wrong? 

thanks for any advice!!

thank you ver much for the replies! Lots of good feedback and questions. 

So there are several reasons we want to leave with the kids. To be near family and friends, school districts, cost of living, to spend more time with the babies. 

The reason I’d like to keep the house is because it’s a wonderful neighborhood and house and mature fruit trees and just magical. But more importantly, there’s money to be made potentially. 

Zillow estimates $833k price but that’s a bit high. It’s the only house in the neighborhood that hasn’t been expanded and updated. The ceilings are asbestos, the plumbing needs redoing the roof is about due etc etc. But the inventory is still tight here and there’s tons of demand. 

So I see my offer might be a bit weak. I thought maybe she’d like the increased income and reduced liability as she approaches 90 years old but I see the tax issues might be too big an obstacle as she does seem pretty well off. 

I’ll make an offer and not expect much from it. Unfortunately I can’t offer much more than 600k or the numbers stop making so much sense. 

I really shouldn’t spend too much time on this because my offer very well simply be declined by the owner. But we do have rapport, so I figure it’s worth a try. 

Here’s the situation, we’ve rented here for 12 years from an old lady that lives an hour away. Her kids are interested in taking over the handful of rentals she has which is why this may all be for not. I’ve taken care of everything here, I never bother her. I’ve paid a week early for 12 years! She LOVES us. She hired someone to paint the house exterior when we told her our first baby was coming she was so excited. She says we’re the best tenants she’s ever had. We get a killer deal on rent. It was killer to begin with and I’ve been grateful for the 4% annual increase she does while prices sky rocket all around us. 

We love it here, but with the two babies it’s time for us to move. 

Our current rent is $2600 

I want to offer to pay $3000 for as long as she wants 1-15 years and then pay $600k 

My main question is whether that type of structure of offer makes sense legally or technically or practically. 

I’ve never done a seller finance deal and I want to make sure whatever I offer isn’t so unusual that her lawyer or advisor shuts it down right away. 

In terms of potential numbers I think I could convert the garage to an ADU and rent it for $2k and could rent the house for $4k especially if I added a bedroom

And then if I did those things it would also be worth about $1m so I’d gain equity, but I love the place so much I’d probably keep it forever. I know I should leave my emotions out of it haha. I do have 9 LTR and a GC license so I have some experience. 

Thanks for any advice or feedback on this potential offer I’ve been concocting. 

I’m wondering what’s reasonable

thank you for the feedback. I’m trying to figure it all out, so I appreciate any info you can give me. What do you think is outrageous? Just trying to figure out a baseline and not spend a ton of money getting my license especially before I’m ready to actually use it. 

I’m working on my real estate license. I guess I’m going to need a broker to take me on. 

I’m really just getting my license for use in flipping houses which I plan on getting into within the next year or so but I wouldn’t be opposed to helping clients find houses too. 

I’m currently in Los Angeles but once I leave my 9-5 in the next year or so, I plan on doing flips in Northern California near Chico. 

I’ve heard of some pretty outrageous monthly fees, so I’m also wondering what’s reasonable and if there are any options with minimal costs involved. Thanks for any advice on finding the right broker! 

Do you want to live in the mid west? Upstate new York has some great deals and you can take the train to the city still. Palmdale Lancaster has a few multi units that would cash flow. There’s always Texas. Maine has come and gone but still a safe investment. The Carolinas and Virginia are cheap cheap in much of the state. 

 You’re gonna refinance a 5.39% with a 30 year lock?!

As I’m getting closer to leaving my 9-5 and focusing more on family, I’m focusing in on what I want to do to earn a living. 
I've been doing BRRR and it's been great to watch my portfolio and net worth build up.
But to transition away From my W2s it seems like I should try a flip for income. 
My question is about financing. 
I'm thinking a certain SFH LTR I own "Tanguay St" will be the most accessible equity compared to multi units or trailers I think. Plus the rate lock is up in 2026 it.

This property is in Maine, but I will be looking to flip in Northern California, Chico / Oroville area because that’s where we’ll be moving to with my wife’s family and I’m familiar with the area.  

So are the banks in NorCal that will lend on a fixer and include a construction loan? Should I be looking for a line of credit or a mortgage? The banks seem so different compared to back east.