All Forum Posts by: Joehn B.

Ashley, you posted this in duplicate to like 5 forums.  the starting out forum is probably the best place for the question.

You don't mention your current situation, but house hacking your first investment should be high on the list.  

I would suggest just that, house hack a 4plex for cash flow, and save for your second creative finance deal and grow from there.

The idea here is you should be paying zero for your roof (or close to) before buying a second property.

Move on, plenty other properties to get.  If you plan to demo/build, then make a cash offer for the land value minus the demo.   it should offend him, and so be it.

As @joe said this property with a long history of neglect, water intrusion has done far more than bend some rafters.   Only way to mitigate the unknown is to assume a rebuild cost.

This probably started the first time was late.  bad tenants need to be strictly held to the lease or the will try to take advantage of landlord softness.  First time (and everytime) they are late file notice to evict on day 4.(or whenever permissible).  dont accept partial payments.

NO.  800 is too much, it will never cash flow.  look at built properties for your 2nd.  are there older homes in this are you can buy and cash flow until rates are lower and the raze and build new on the lot?

Look at fourplexes.

I think we now have Fannie loans (in addition to FHA) that cover owner occupied multi-family!

it still won't cashflow but you might live in one unit for 1,600 and the tenants pay for the rest of the building.  Scale up!

Time to evict!

Given it is straightforward, non-payment you might as well do it yourself, come to the hearing with all your paperwork.  it will be an education.

The overall recommendations for an attorney are still valid, down the road have on ready and have them send the notices?  the fee is probably tax deductible as a business expense.

Let us know the outcome!

Thanks,

No, I don't have new construction experience but wanted to get started.  rebuild only.  Thanks for the partner recommendation.  I know a couple of builders that I might approach with this.

Hi,

A friend has a very old, paid off derelict home on a large lot in a class A area.   I want to buy the property on terms and demo, build a new house.

I want to structure an owner finance deal with him where I either pay him interest only on the lot or no payments for 18 months (or until the new house completes and sells whichever is earlier). 

How would you structure this?

Also, once on title, what are my construction loan options?

Thanks!

Glad it worked!!! 

There  are videos on youtube (Pace Monty? etc) that cover the basics, mentors, and books on creative  financing that cover it.

I agree with Rick, it's about presenting the offer among other options and explain how it fits with the sellers problem.  If subject-to solves their problem you will likely get it accepted.

Find a local RE attorney that does subject-to contracts and have a chat with him.  you find the deal, present the offer and close.

Finally, remember the additional benefit  of sub-2, like cash is a quick close.