All Forum Posts by: Jesse Waters

Keep after it.  I only expect 1 out of 10 of my offers to actually be accepted by the seller.  When I put an offer in I structure it so that its a good deal to me & hopefully the seller as well.  Particularly when I ask for seller financing, I may lose out to a lower priced offer just because the seller is unsure of, or unfamiliar with that sort of deal.

Getting offers rejected is just part of the game. The first few properties that I purchased off the MLS I had the offers accepted with little or no back and forth, recently I have had a bunch turned down, not a big deal, it happens.

Best of luck.

You could keep doing purchasing through hard money, reno, then re-fi & rent.  You should be able to get up to 10 properties through traditional financing, but you will have to start with 25-30% equity.

Depends on the seller. That's why I would suggest talking to a few lenders, particularly credit union's and lenders that keep loan's in house. If there is no current financing on the property, I guess it would be possible to find a lender that would be willing to do a 2nd or LOC on the property. The best situation with seller financing is to give them a DP that they are happy with, say 15-20%, then a 3 year balloon, which should give you enough time to build equity in the property and roll it over to conventional financing.

As @Steve Vaughan mentioned the IRS will assume interest, but that's not really your problem.  

As long as the property checks out, meets all your requirements & you have done your due diligence, it sounds like it has potential as a deal for you.  My big things would be disposition of the title at closing, property condition & lease.

The bank will usually want 1st position on the mortgage, and might allow a seller second.  Talk to your lender and explain what you are trying to do.

@Wes Barrier Yes, lenders have a seasoning requirement on mortgages, they can vary between 6 months to 2 years, depending on the terms of the loan, but they seems to average around 12 months.  

I have a couple of lenders that I use that may be willing to answer questions for you, one of them has an office in Richmond.

We kinda did a house hack for our first rental property. We purchased a townhouse in Newport News on a 0% down VA loan in June of 08. In August the market in NNVA started to tank. So we were stuck with it. When I got off active duty in 09 we moved back to SC and still had an unwanted townhouse, so we became landlords.

Now we have the townhouse, our primary residence, two 4-plex's and another single family house.  About to buy another 4-plex & 3-plex. 

Best of luck.

JW

Generally, when an agent list a property for sale the list the commission that is to be split, usually 6%.  Since you are basically the selling agent, you don't have to worry about your half.  I'd say sure, offer them 2-2.5%.  If it gets a deal closed and your numbers work out in the end, then why not.  Might open some new doors to you.

Welcome Wes.

Sounds like you have got a pretty good plan going.  Having a few month's worth of cash built up is a great thing.

Have you considered house hacking?  You are already kinda doing it.  Usually, house hacking is where you buy a multi unit property (2, 3, or 4) live in one and rent the rest out.  Consider buying a quad, renting three of the units out and living in the 4th, then renting out the property that you have already purchased and have 2/3rds of rented out anyways.

If you plan on buying the property as an owner-occupant (OO) then you will get better loan terms from FHA, DP between 3.5 & 5%.

Hope that helps some.

Regards,

JW

You shouldn't really need a second job to fund your wholesaling, unless you need money for your bandit's & yellow letters.

Really deponds on your over all goals.  If you want to do fix-n-flip long term, then working with a contractor or handy-man could be educational.  If you want to do bun-n-hold long term, then working for a property manager could add to your education.  

I have never worked in any of the RE trades other than owning rental properties.  I know that I can't do it all, so I get those on my team that can.  I don't know every aspect of the law, so I hire a good lawyer, I don't know all the accounting & tax rules, so I hire a good accountant etc.  I try my best to gain a solid understanding in each subject, but I don't have the time or reserve mental capactiy to learn everything about everything.

Welcome to BP.  I had looked at a bunch of properties in Columbia but decided to buy in West Columbia (outside city limits) for the lower taxes.  Unfortunately, where city limits are jagged you can either pay both city & county or just county tax.  Also, tax rates vary depending on the school district that you are in.  I have two 4-plex's in West Columbia, a few miles past the airport on 302 and they do really well and the taxes aren't too bad.  The same thing in Columbia & Richland county would be a back breaker.