All Forum Posts by: Kyle Penland

I recently made an offer on a property...It was a 10 unit apt building generating 3k a month...He was asking 180k.  I offered him full asking with a 20 year amort, 8 % interest, and a 10 year balloon note which I thought was a stellar deal for him!  I would have ended up paying him close to 300k for it.  He declined stating he decided against owner financing...I found out later on that he is just not ready to sell yet, but still tossing the idea around.  Thats just my example.

Lots of beautiful homes have ugly pasts...If you make it great doesn't matter about the past...If I found a local property like this, I would jump all over it.

Basically you are asking him if you give him 6k down, will he hold the note, meaning that you will make your monthly payments directly to him...There will be no bank involved in the deal.  Google Owner Financing.

Awesome!  Nice work!

I began as a flipper and have turned to buy and hold...Careful with the flipping, it can get you into trouble QUICKLY!  If you find a property that is 35-40k as you said where comps are selling for 125+ something is MAJORLY wrong with that property...Good luck with your venture!  Being new to it, I would suggest buy and hold first...there is more of a margin of error in the buy and hold if you pay to much, its ok as long at it cash flows.  Well its not really ok, but you can still break even on the property versus if you are flipping, the roof collapses for example and your budget is now busted.  Run some deals out in the community and you will learn a lot!

Its not an investment to me if its cash flow negative...You could get better returns out of a free checking account?  Sell and buy something that makes you money!  my .02

My question is do you have a team in place?  10k may work depending on the neighborhood.  Are you doing the work yourself?  Do you have a team in place to do it?  Have you had any bids from contractors or are you pulling that out of your head?  Make sure you have a bid on paper and know your numbers in concrete before moving ahead.  Write down each thing that you need, go to lowes and price each part out, add 2500 to each unit for contingency fund, depending on it you may need more.  Hope this helps!!!  Can't stress the contingency fund enough!