All Forum Posts by: Lance Turner
Lance Turner has started 24 posts and replied 62 times.
Post: Evaluating Refi on an LTR
- Investor
- Posts 62
- Votes 26
With the recent dip in interest rates, I refinanced a property that I purchased about 3 years ago. The savings will pay for the added cost in about 5 years. Are there other measures you use to evaluate the ROI if you roll the refi costs into the loan. Technically I got a 20% return on equity (increase in cash flow vs refi costs). Are there other measures you use?
Post: Seller Finance Challenges
- Investor
- Posts 62
- Votes 26
Quote from @Jonathan Taylor Smith:
@Lance Turner - I've done several creative financing deals, such as lease-options, subject-to and seller-financing - where friends and family were heavily advising the seller against it (they always do). My own mother advised me against getting into rental properties. People who love you want to protect you from anything that is different. So, in some cases I suggested inviting the primary "advisor(s)" (who are against it) to join us at our next meeting on the matter. In other cases, I asked for specific details of their concerns that I could speak to. And ask questions to reveal the real concern... Many times you'll find that these "other people" don't actually exist.
Good point. We met with the lawyer. He raised his concerns. He suggested we do a lease option and couldn't understand why it would make a difference to the lender. I think I explained that and generally made him see why there has to be ownership interest. The other negative voice is his out of state brother. I will see if we can make that connection.
Post: Seller Finance Challenges
- Investor
- Posts 62
- Votes 26
Post: Seller Finance Challenges
- Investor
- Posts 62
- Votes 26
My business partner and I are working on a seller finance deal. The idea has been to put three properties into our LLC's name then refi out in 6 months using one of my broker's lenders that allow a 6 month seasoning. The seller is very supportive, but has a few people who are very leary. We're looking for ways to ensure his interests are protected. However, we don't want to go in with a big down payment. Any suggestions?
Post: Converting a SFR to a duplex
- Investor
- Posts 62
- Votes 26
Quote from @Denise Supplee:
Having a SFR already zoned multifamily can save you a lot of headaches. Even in a less invasive county, I'd start by scheduling a pre-application or "concept" meeting with the planning or permitting department before doing any work. Bring your proposed floor plan and ask exactly what they'll require for a legal duplex—things like separate entrances, fire separation, egress windows, utility metering, and parking often come up.
Getting clarity upfront can prevent costly surprises later, and sometimes you’ll even get helpful suggestions from the inspectors themselves. It’s also worth checking if there are any state or local incentives for adding units, as that can offset costs. Sounds like you’re in a strong position to make this a smooth conversion.
That's great insight. Thanks!
Post: Converting a SFR to a duplex
- Investor
- Posts 62
- Votes 26
I found a SFR that is zoned multifamily. The layout is conducive to converting it to a duplex. After we close I want to get to work on the conversion. Can anyone give me advice on working with my local government? I've done rehab before so the work isn't concerning but I've never changed something potentially into a new class. I'm not sure what our county permitting folks will have to say.
My county is probably on the less invasive end of the spectrum.
Post: No Sellers Disclosure
- Investor
- Posts 62
- Votes 26
Thanks
Post: No Sellers Disclosure
- Investor
- Posts 62
- Votes 26
Quote from @Russell Brazil:
Quote from @Lance Turner:
I've been buy and hold investing for 7 years now. I'm looking at a portfolio of homes. However the seller will not sign a disclosure. I've never had anyone do that on an investment property. Has anyone encounter that in the past? Any suggestions on how to approach that situation?
Disclosures arnt worth the paper their written on. People forget, people lie. Do your own due diligence and never trust a disclosure.
I appreciate that. My concern was not that I needed the disclosure. It was more, why doesn't he want to sign something saying he's not aware of any problems. His unwillingness made me question his intent.
Post: No Sellers Disclosure
- Investor
- Posts 62
- Votes 26
I've been buy and hold investing for 7 years now. I'm looking at a portfolio of homes. However the seller will not sign a disclosure. I've never had anyone do that on an investment property. Has anyone encounter that in the past? Any suggestions on how to approach that situation?
Post: WIN a Ticket to BPCON + Free Year of Pro | 7 Deals in 7 Days Challenge
- Investor
- Posts 62
- Votes 26
Challenge Complete!