All Forum Posts by: Jay Sebastian

Hi Frantzces Lys!

Welcome to BP. Like everyone else has said, this is the best resource for building knowledge on Real Estate investing.

I'm an investor in Northern VA, in Prince William county. I'm not licensed yet, but I'm planning on sitting for the exam in the next couple of weeks.

I look forward to staying connected.

Best of luck!

Jay

Thanks again for all the advice, everyone. I was fully funded by one lending club investor almost immediately. I guess I wrote a good pitch. :)

I was offered under 7% for a 36 month note for 20k, 8.99% for 25k. For a 60 month note, the rates went up to 10-12% I believe.

Thanks, Dawn A. I've actually been lending through Lending Club for quite some time now. I actually looked into them for the loan earlier today and I think we are going to go that route. Their offer is better than I could get from the bank. Since it'll be paid off in a few months anyway, it makes sense - as long as I can convince the seller to wait long enough for it to fund. :)

Thank you! I think we'll get this thing nailed.

I appreciate the advice!

My thoughts are to just loan them the 25k myself. It will take some time to get it together, but I agree with the challenges on hard money. So - if I can help convince the seller that this will not fall through I think we can make it happen if he can just be a bit patient. :)

Ultimately, I guess I do have a larger role. I'm going to be on title on the property, and one day it'll end up in my portfolio anyhow....

Thanks, Jon Holdman. I guess what I meant was hard money or a private lender.

The property will be a rental. They aren't looking to downsize into it for several years. It's a good deal at 85k. It's fully renovated for a retail sale. Like properties in the same neighborhood comp around 95k, but none have the coveted lake view that this one has.

Asking the seller to carry the note on the remaining 25k is a great idea. I'm not sure he'll go for it, but it's definitely an option I can put on the table.

My role in the deal is not financially motivated - I'm their son. I'm just trying to come up with ideas and make sure it all makes sense.

Hello! I've been all over this website for the past several months and I love the advice I find. I've even contributed where I can from time to time. :)

Hopefully I can get a little advice on this opportunity.

Subject property (on Lake Oroville, CA) is a beautiful 2/2 "cottage" with a lake view in a highly desired neighborhood. Initial asking price, 87.5k. Area took a hit, but is starting to recover.

Seller needs 85k to break even (mortgage, Realtor, taxes, etc.) on the deal. He's a bit gun-shy because two previous offers went into escrow and almost closed, but both fell through at the last minute. He's looking for a cash buyer.

Enter the buyers - they loved the property, but were heartbroken when they discovered that it was in escrow. They saw this property as a chance to hold as a rental for a few years then downsize into when the time was right. They asked the listing agent to let them know if something fell through. Well, it did - today.

The buyers are waiting for a home they are selling (one of their parents) to close - it will close any day now. Almost zero risk of the deal falling through. At close, they are expecting to get 60k cash. They need another 25k.

I've advised them to look into a transactional loan, since the equity position for the lender would be huge (~29% LTV) I figure it would be a pretty low-risk loan. They don't have good credit, but have stable income and own their primary residence (but pay a mortgage).

I spoke with the listing agent today and we discussed the seller's fears and the buyers are willing to give good earnest money and help with the mortgage payment he has to pay due to the deal that fell out today.... if he can wait until the money gets pulled together. That should only take a week, maybe two.

I'd loan them the 25k in a heartbeat if I had it liquid......see, the buyers are my parents. I can borrow the money as I have great credit and good income, but I want to be sure I'm thinking through all of the options.

As soon as they get the property they plan on paying off the 25k via HELOC and/or an annuity payment that is due in a few months.

I've brainstormed with some amazing people on BP and I've learned so much. So - what am I missing?

Thank you all!

Hi Heather Skowronsky!

I'm also in Prince William County, down in Occoquan.

This site is really full of valuable info. I've been pouring through it for months now, and am always finding great new tips and meeting new people.

I'm not a full-time investor, but I'm hoping to be soon. I'm working on finishing up my RE license in the next couple of weeks, but until I can replace my full-time income, I'll have to continue part time.

Let me know if there's any way I can help!

Jay

Therese V.,

I completely understand not having the 20%. That said, I'm all about OPM!

I'm looking at North Carolina for investing due to the price points as well.

There is a REIA in Fredericksburg that is on Facebook here:

https://www.facebook.com/pages/Fredericksburg-REIA/185427228231350

They meet in the library in the England Run area off of 17. They also do a Saturday night dinner and deals thing.