All Forum Posts by: Jason Dillard

Right O on the 6 months.  That's what we call in the South extree.  It may advance our argument in a lawsuit if need be.  More importantly, our buyers need time to save up the closing cost.  We tend to get most of their savings when they move in.  

By the way, we do a 6 month lease that the rent increases on the 7 month automatically.  This way the tenant-buyer has incentive to close.  We need the propery tax savings to make all this headache worth it.  One rental that my taxes were 1600 per year just became a "sold" home that decreases my taxes to 800 per year.  I plan to own that one 30 more years minimum.  Mulitply that times all our houses and you have a large figure. 

My buyers pay about 1200 bucks to close each deal. 

@Vincent Polici 

Your non owner occupied buyer's lawyer might not agree with you on on that strategy when you have to foreclose.  But I wish you the best of luck.  I need my red tape to get the owner occupied propery tax rate. It saves us about 80k per year.  

We do seller financing that is compliant with Dodd Frank.  We have a licensed originator that pulls credit, sends truth in lending, etc.  All borrowers have proved "their ability to repay" because they have performed on a lease with the same payment for 6 months.    We verify their income and job status when they close.  Every closing is performed by an attorney.  We have a complete file on each buyer that could be used in case a borrower files a counter suit against our foreclosure.  We also use a licensed loan servicer that sends monthly statements and calculates payoff etc.

No attorney will verify that we are completely complaint because Dodd Frank has some ambitious rules.  Also, there is no case law that I know of yet.  However, we believe we have mitigated our risk as much as possible.  The reward of seller financing single family over renting our weighs the risk.  We get nice down payments and our buyers are responsible for repairs and maintenance.  The largest benefit here in SC is the property tax savings for owner occupied houses, which saves as much as two thirds in some cases.

Contact Jack Gowan. Remax on Westside. 

My first 2 suggestions would work as long as you own it separately from rest of family.

May not be worth it to risk family land.  You can buy houses with no money or banks without messing with your family's emotions.

A private lender may lend 30k on your land to help you with a flip.  

You may use the land as more collateral to convince a seller to carry all the purchase price on a flip.

If you decide not to keep land, you can use it as a down payment on a flip (if the seller will take it).

Subdivide and sell part of the land.

And more I'm sure.

Read Lonnie Scruggs book, Deals On Wheels.

Smaller deals like these work well in a small Roth IRA.

 You are my hero.  But I don't know Charleston.  I'm in Greenville, SC.  Your business sounds very similar to ours.  I know I could learn from you.  Teach me how to buy more houses some more. 

Jay is right. Cash is best to get an offer accepted when competing with others.  I prefer not to compete.  Hardest way to get get good deals is to make offers on listed properties.  The last house we bought never had a sign in yard.  Didn't need cash close on it.  I raised the cash to buy and remodel after the offer was accepted.  You can raise the money ahead of time with crowd funding, private placements, etc.   We prefer one lender on each house.  

BTW, we do send proof of funds with offers that are listed.  However, my low ball offer rarely gets the deal.  

Access to cash is almost as good as cash.  If you believe that cash follows deals, then just make cash like offers and you'll get them accepted.