All Forum Posts by: John K.

@Armani Emon

You might consider going up one size on the post card.

I always get a kick out of sitting at the dining room table with a seller, and they pull out a stack of 4x6 postcards, all stacked nicely. Think of Google searches here, how many pages do you click through? Is it likely a seller will skim through a 100 postcards? However, if yours is larger, it will stick out, no skimming required. 

@Jeffrey Bresch

As @Vee K. said, you should be prepared to listen, more than talk. This will reveal exactly what you need to do and say, to secure that deal. The questions you should ask, should require a thought out answer, not yes or no. Avoid taking a lot of notes, this could appear to the seller as you are disinterested in them talking. When they stop talking, this is the time to jot quick notes down while asking them, "So if I understand correctly......" This should lead them to opening even more about what they just shared with you, providing you even more data. 

@Corbin Jones

Since the difference was 30K, try and convince the seller to carry that balance with a 2nd note.

We put packages of homes together, as well as go after all sizes of MF units. We always request Schedule E for our clients. We just presume that everyone will create stronger numbers to sell, but will never report those same numbers to voluntarily pay more in taxes. We are happy to sign an NDA, and have experienced very little push back because of it. 

If/when we do get push back, we are happy to make an offer with their generated numbers, but it will result in leaving money on the table. 

@Russ Marlborough

1. Is your bank willing to do the loan at 120K? If so, get the owner to carry the 30k difference in a note, if you are still comfortable paying 150K. Better yet, convince him to carry the whole thing on a note. 

2. Are there currently any repairs/improvements that can be made to bring that number closer to the 150K?

3. Are the rents inline with the market? If not, how soon can this be corrected?

@David Bulgrin
If you would prefer to have a more defined exit strategy, maybe suggest that you draft papers on the duplex, stating that you are responsible for "X" percentage of the payment depending on the partnership split. This would make it a formal arrangement and identify the parameters of the partnership. 

It sounds like he just wants to genuinely help the both of you succeed in anyway that is necessary, given the fact he essentially brushed off the idea of a partnership agreement. Also, don't underestimate the importance that you are married to his daughter, and not the other way around. There isn't a barrier strong enough to stop a father from helping his daughter. 

@Sam Bromano

In my deals I only advertise the properties for sale via Owner Financing. 

If I had tenants and wanted to sell, then I would approach them and see if this is an option they would consider. If not, as the lease would expire I would just list them for sale.

@Sam Bromano

The only concern with having a mortgage, is it could trigger the due on sale clause, if the bank notices it. It can happen, but it's really rare that they do. 

Given that your homes values are that high, you might want to tweak the interest rates. My OF homes are priced in the 150-200K range, keeps my payments reasonably close to current rental rates. 

@Sam Bromano

 For me, I like to keep my terms in the 10-12 year range and interests rates at 9 or 9.5%, with 7-10% down. I prefer more interest dollars versus cash down. 

As far as documents needed, I would consult with an attorney in your area to make sure you comply with state regulations. 

@Sam Bromano

It would all depend on their offers versus the final amount, after closing costs. 

I might suggest you consider owner financing them to buyers, unless cash is the motivator here. You will do considerably better than the market could ever afford to pay you.