All Forum Posts by: William Robison

Thats a really interesting question. I can certainly understand your concern. One thing that I would like to add to the consideration is the value of occupancy, but on the wrong side. A house is worth more and less of a risk to the lender when occupied. During the BPO process, its kind of an unwritten thought process that a house that is vacant is something that the lender wants to fix quickly. One that is occupied could present better and value higher.

The next thought is about the "tenant" occupancy at closing. I would want to ensure that this person is 100% out before closing. This tenant is likely not under a lease and you may have bigger problems if the deal comes together and closing needs to be quick.

A buyers agent, in hind sight, would have been a good tool at this point.

@Deadrick Colbert

Nothing quite beats a face to face conversation. Dont ask for the money. Tell them about your plan. Get excited about the prospects of what your plans are. Talk about knowledge and experience in a fun conversation. Mention that you are checking on some alternative financing. Even mention owner financing, even if this isnt a part of the strategy. Or that you are trying to find the right partners.

If they are interested, let them make the suggestion of a money partner. Then it becomes their idea and you didnt have to ask and risk a relationship.

That's just my thoughts. However, I would really stay away from a letter.

All the best.

Hello @Account Closed

My experience with owner finance is fron a few catergories.

One, a seller that has some equity and needs to move fast.

Two, a seller that is under water and needs to move and is willing to let someone else pay down the mortgage until the market returns.

Three, a seller who doesnt know that he wants to owner finance but is retired, or working on an investment plan that would be interested in a higher return rate for his money that what the bank will offer him/her when they sell. Typically a free and clear house and a healthy seller.

Four, once in a blue moon, a realtor will let a house sell with owner financing. Here may be the reason that you are "laughed" at. Realtors want a commission and they are concerned about how they will get it if there isnt enough money changing hands with the transaction. Responsibly, they have a fiduciary responsibility to the seller to present all offers. A buyer or a buyers agent can also request on being present at the offer presentation to the seller.

Item two is not too uncommon and likely what the gurus are telling you. However, my guess is that it is one way the gurus are telling you that you can pick up a property with no credit and no cash. They are few and far between, but not non-existent.

Best wishes.....If this is what you really want, be ready to search long and hard for the right deal. The last one that I put together was a combo of three and four.

Looks like the Pats put it up on the board for you.

Lets get ready for a good season.

Hello @Thomas Bissett

Welcome to the BP community. Well, it depends largely on the rules of the county in which you wish to buy and your citizenship there. I have no knowledge of Holland and England rules, but that is an imporant characteristic to add to your question. There are several on the BP that have this experience and I would likely seek them out directly.

Many countries it is tough to get a mortgage or loan on the property. Some it is tough for non-nationals to get a mortgage. First, I would learn about the rules for your particular circumstances.

If you are able to get a loan, what terms would be offered. Then determine if you can work within those specific terms.

All the best in your plan. It does sound good, just check on your specifics.

@John Briggs

Have you been able to locate a quality property management company in Kansas City for your client yet?

Welcome Back Michael...

Im still rather new to this community, but you will find more connections and information here than you will ever be able to absorb.

Best wishes.

Hello @Sam Leon

Thats often a funny comment. Ive been in real estate for only 10 years now. In that time, my association sales contract has gone from 8 pages to 16 pages. I often joke that each new paragraph is the direct result of a recent lawsuit. However, this is actually often the case.

As-Is is basic and understood. Where-Is came about likely as a lawsuit. Ive seen a few stories over the years about a house that goes missing during foreclosure. Gone. The prior owner moved it, literally.

So, the As-Is, Where-Is clause is partially about covering the now seller about the location of the property.

A sales contract is really about the land and its improvements, not the house and the land. Real estate is about what is attached. You can buy a parcel of land and the house that is on it, as is the case the vast majority of the time. But if the house moves, it then just becomes the land that the deed is on.

This is a legal question at this point, but Ive seen a couple of instances local where the house moved and the lender was just stuck with the land that the deed was written upon. I followed the last case for 2 years and FreddieMac ended up just selling the land.

@Andy Young

This is really a conversation that you need to have with the owner. If you talk with the lender, they will be very unconcerned and believe that you are trying to cause them to rush or get a better deal.

The one thing that you do not want to do is fix the repair completely, because then you lost tremendous value reduction when the lender does their BPO or appraisal.

Having done several short sales and 10K BPOs, many with investors involved, I would suggest that you tarp that area of the roof. Its not a fix, but it will stop the damage. It also screams to the BPO agent that there may be something wrong that they should at least consider in their valuation.

Sammie-

Welcome to BP.. Getting an education before jumping in is a critical and smart element. You should applaud yourself for pre-planning. BP also has a Ultimate Beginners Guide that is a great tool.

Your next step is to #GSD. Get Something Done. So many would be investors get wrapped up in all of the education that they never pull the trigger. This is actually covered in the guide.

Find a mentor to share a deal with. Scout out a deal and see if this person will split it with you. Essentially, you are asking if this is a good enough deal and if you are prepared enough that they would put their money/time into it.

Best wishes. Remember, your first deal is the best education you can get.