All Forum Posts by: Jacob Zivanovich

@Carini Rochester

Very informative, thank you!

@Account Closed

Hey, Ken, that was a great post you made about Subject To. The seller financing option compared to a traditional loan is insane. The savings are so obvious that I would feel silly not to spend the time learning how to operate privately with a seller. Thank you.

@Carini Rochester

There always seems to be a stigma to the balloon payment, so it's nice to hear other perspectives and successes with balloon payments. 

So, assuming that after 5-10 years, the house will have created some equity. You then use that equity to refinance in order to pay off the balloon payment? 

@Andrew Kiel

Wow, thank you for the detailed response, Andrew. I never put it together that you don't necessarily need a balloon payment when doing seller financing, that opened my perspective a bit. Some people just want that monthly payment rather than one lump sum because of interest.

@Chris Seveney

Thank you for giving me the other options that can happen. Much appreciated, Chris!

The more I get into this, the more appealing it sounds, but I'm still cloudy on some concepts. This is regarding balloon payments.

So say you and the seller agree to begin this transaction and are discussing the type of financing that will occur. I usually hear of a 5-10 year balloon payment. How does the investor make this happen? How does someone get out of the balloon payment? Wouldn't that total amount be due at the end? I've always heard that balloon payments are risky.

Here's my answer that I think is correct, but please correct me if not: At the time of the balloon payment, the investor goes to a bank and applies for a loan on the remainder of that balloon payment. That way, the investor doesn't necessarily have to pay that amount up front, but can continue to use the revenue from the property to pay the loan.

Not sure if this is the correct thinking. Thanks in advance!

@Joey Banasihan

Hey man, thanks for replying!

I believe I was talking with Tracy from your same company (I think) and going over my goals and what the housing market cater towards. There seems to be a great community over there. 

SFH seems to be the way to go, although a duplex around the $400K mark is ideal but hard to find. I've noticed that some SFH properties in Boise/Nampa area have basement rooms/kitchens that could make for a great unconventional duplex, have you noticed this?

I'm analyzing house-hacking deals in the Boise area and wanting to hear from an experienced investor here. 

Looking for small-multi's, and some work! However, there's not a high inventory. Are there a lot of ADU's in this market? Trying to find out what the ideal property is in this market as a newer investor.

@Michael Blackwell

Dude right on, so helpful! I'll definitely save this and edit it where it makes sense. Yeah using Chatgpt seems very helpful with wording trying to cover all your grounds. Thanks man, I'll keep in touch!

@Jake Andronico

Oh, there definitely is an option for renting to young professionals, just curious if people do it. 

For ad-wording, when you rent by the room, do you mention in the advertisement that there will be roommates? Rather than surprising them haha.