All Forum Posts by: Ken Nyczaj

@Jaysen Medhurst thank you for clarifying that, I'll ask the lender what she meant by paying the 2nd position before getting paid.

We've considered it but with a team of already three people we'd like to keep it at that, at least for our first MHP. And the owner seemed interested in 5% interest which would be a great rate for this deal if we can move forward, which would likely cost us less over time than a capital partner.

Hey all,

Looking to purchase my first MHP and as I presented the LOI to the bank and how the deal was structured they weren't too thrilled that I was looking to have no money in the deal. Here's how it was structured on the LOI to the seller:

$1,250,000 purchase with 80% bank financed and 20% owner financed. $1,000,000 bank financed and $250,000 owner financed.

Even with the bank being in first position, they saw the seller financed portion as the seller being in 2nd position, and if we were to be foreclosed upon, then the seller must be paid back their note by the bank before the property could be taken possession of. I guess the bank is looking at it like, if they loaned $1,000,000 and then we didn't perform, they'd then have to pay the seller $250,000 and would be at a loss.

Then, I thought, well what if the 2nd mortgage wasn't secured by the property but was an unsecured promissory note between buyer and seller, where we were only personally obligated to pay the note...

Just curious what others do in this type of scenario, haven't presented anything to the bank yet.

@Anthony Simboli thank you. Best of luck out there.

About two weeks ago sold a flip on the Eastern Shore Maryland near Annapolis during the coronavirus epidemic. Getting the final county inspections, home inspections, appraiser, and title company to work with us during this time was challenging, but well worth the effort to continue to communicate and express our attention with how each individual would like to be a part of the transaction- what they would and would not do.

It seems essential employees are still looking for modern renovations in this market. Continuing to look for properties to flip and have one in the works now, but building in an additional 20% margin in case of market fluctuations.

Here are some quick before and after pictures.

@Ruth Lyons thanks!

@Joe Norman no basement but up on a foundation with about a 30 inch crawl space. The entire framing underneath was rotted and damaged from termites. We replaced 100% of it- main beam and the joists. Shored up some of the piers. We were fortunate it had this amount of damage, it greatly reduced the competition. 

@Trey Williams appreciated. Best of luck to you as well.

More videos and pictures available on our website or YouTube

www.KenBuysHouses.net

@Aaron M. thank you 

For some reason other photos didn't upload: