All Forum Posts by: Jenna Stonecipher

@Jerry Kisasonak I just uploaded it to the fileplace under contracts. I recommend looking at other, more exhaustive, owner financing addendum online as well. Mine is just a basic document to get a verbal agreement in writing. I let the RE attorney do the rest.

As for the 3 offers, I don't have anything on that. I just look at 3 different ways to structure the deal using various tools: cash, financing, term, interest rates, balloon payments, etc. All 3 options should be structured in a way that makes financial sense to you.

3 example offers

1. 70k cash for the property

2. 200k owner financed with 0 down for 30 years at 1% interest

3. 5k down, 95k owner financed at 7% interest for 7 years with a balloon payment of unpaid principle.

To any number crunchers out there, these examples are completely fictitious and aren't rooted on anything specific. I just wanted to give a broad example of what I meant. Now, if you don't have 70k cash, obviously-- you wouldn't present #1 as an offer. You would create something else. Hope this helps.

@Robert Williams That's interesting. I have family in Metropolis IL but I think that's of my Lauderdale lineage. The "Stonecipher mythos" says that that 3 brothers split up, one went north, one went south and ours settled in TN. So, perhaps ;)

I don't know about this first-hand, but here is a website that might help you sift through the details and processes:

http://www.doleta.gov/business/incentives/opptax/

@Justin Aymer The BP fileplace has a one page purchase contract that you could use to get this in writing. It also has a clause in it that would give you an "out" if for some reason you aren't able to lock in the funding: "This offer is contingent on Buyer receiving adequate financing and approval from Buyer’s partner." Keep in mind that many lenders will not finance a mortgage below 50k. Some insurance companies won't insure them either. Crazy, I know.

If I were you, I would hire the home inspector. After the inspection report if you decide to continue with your purchase, get estimates. Some contractors can give you broad estimates based on the language and pictures in the home inspection report. If you get estimates from a general contractor--they will pad it with an additional 10-20% than if you received estimates from individual contractors. Your home inspector can be a wealth of information when it comes to referrals. So can your realtor.

Your home inspector should also be able to site things that aren't up to City Code. I wouldn't call Codes out... They will cite the owner whether you buy the property or not. Also, they can be awful to deal with.

Make sure you download an estoppel agreement for the existing tenant as well.

Best of luck!

@Bill S. I've read the book and attended her seminar. It is a fascinating concept that really hits home for me--as someone who grew up poor and is rising to middle class. You made my day for mentioning this, and I highly recommend it to others. Thank You!

Welcome, @John Gibbons

@John Gibbons

Woohoo! 2013 was a great year for you. I hope to be that big one day. :)

I think if you are confident and know your stuff, that this won't be a barrier. Practice negotiating with sellers, before you go all in. Also, dress professionally. It makes a huge difference.

Your age won't be a setback. On the contrary, I think many local investors enjoy seeing a high-energy young person who is eager to learn from them. Surprisingly, many are eager to teach!

At 19, I was bragging to my uncle about my high credit score and he told me, "you just haven't had enough time to mess it up yet." That always stuck with me. Watch your credit and your credit debt ratio. You will rapidly grow in your 20s, and so will your salary, but if you learn to live efficiently then it can be a great boon to your investing.

Also, manage any student loan debt that you may have. If you don't need it, don't borrow it--not matter what anyone tells you. You will also qualify for more if you purchase a home any time up to 6 months before you are set to pay your student loans off <--messed up my first deal.

The best advice I can give you is to purchase a multifamily as your first property and live in part of it. I did this with a triplex, which is considered commercial property here. If I had done it with a duplex (as an owner occupant) my taxes would be cut in almost half. You can do all of if with an FHA loan, btw.

Best of luck!

@Wayne Brooks is right. Get a title search and title insurance. It's worth it.