All Forum Posts by: Jenna Stonecipher

@Justin Escajeda I just closed on a home Tuesday with seller financing. I used the Bigger Pockets fileplace and downloaded the one-page purchase contract. I then found language for a seller financing addendum, which I attached to the purchase contract. I could share this with you if you like.

I used online amortization calculators to look at the number scenarios (terms, interest rates, balloons, etc.) I came up with a few different offers before I met with the seller--and we went from there. They key is to find out what the seller wants. My seller was stuck on a number; so, I used a long term and low financing to make it work for me. Other sellers may want to get out of the property faster. Structure 3 very different offers and then show them all. Ask which ones they like and what they like about them. Go from there.

After all of the documents were signed, I sent them to the RE/closing attorney who took it from there. Yes, we had a closing. Most people opt to use a servicing company for seller financed payments. The company would be responsible for confirming that payment was made and sending out notices if payments are late. They also charge a small fee for every payment though. If you use a servicing company I would work those fees into your financing addendum.

How do I delete this comment?

I added my RE information to my regular LinkedIn profile. It has actually spurred a good bit of conversation from people that I work indirectly with, which is good for my RE business. So much so that I'm seriously considering getting my RE license sometime soon so that I can really capitalize on it. People are curious and want to ask you questions. This is a people business. Do it.

I do not talk about my RE business at work or to coworkers though--unless they ask something very deliberate. I don't want them to think that my thoughts or efforts are being focused anywhere other than my job.

I love living in TN. I count it as a blessing that this is my home--and also a great place to invest. Best of luck. If you find yourself in Memphis, I would be happy to tell you about all of the great things going on here :)

There was a recent forum on this topic. I recommend reading it :)

http://www.biggerpockets.com/forums/311/topics/110708-buying-hud-home-as-investor-before-10-day-wait?page=1#p711881

I am local, but I'm not interested in this one.

I went ahead and started following you though. Maybe another one of your deals will meet my criteria :)

Best of luck.

I used a 203k in July for a triplex that need a good bit of work before it would be in rentable condition. If it weren't for the 203k I wouldn't have been able to purchase it. That being said, if you can get around using a 203k, I would! It's an FHA loan so the interest rate isn't bad, BUT there are alot of hoops to jump through.

1. If the property is older than 1978, they will require a lead-based paint inspection and potentially abatement

2. You have to hire a HUD inspector

3. You have to hire a licensed General Contractor to perform all of the work needed.

4. There are processes and paperwork that needs to be submitted every step of the way.

It's a pain in the butt and it will cost you more money in the long run. paying the HUD inspector, interest on repairs, and GC's premium). If you can do the work yourself in increments, it will provide you with handy know-how knowledge you'll need as an investor anyway. Just my 2cents.

I know this property, and I know someone who used to rent it. I've also had a conversation with the owner about real estate investing and he said, "Real estate is the only way I've ever made any money."

I've seen this house on CL, formerly listed for 185k. I thought about contacting him then to see why he wanted to sell it. Now that the price has dropped, I'm extra curious. Why is he trying to sell it? I believe there's another apt. complex he's looking to get rid of too...

It's not a bad deal...

I agree!

My goal is to buy one new property a year. I purchased my first one in July, which we just finished rehabbing and renting. I was looking forward to the post-Christmas break and 6 months of RE prep work before hunting my next deal down.

...and then a heck of a deal kind of fell in my lap. I've spent the last week scrambling to make it happen. Why let opportunity pass you by? Who knows, maybe 2015/2016 will be horrible years for investing ;)

Best of luck on this one, @Duncan Taylor

How did the cost go from 30k to 44k? I guess that's including the interest that he's charging. And it has to be paid off in 12 months?...

Don't do it.