All Forum Posts by: Kerry Baird

I have bought with seller financing, and I have sold with seller financing.  As a buyer, I like 20% down and to pay 6% interest only for at least 5 years. 

I see it as a tax-benefit discussion with the seller. The benefit to the seller is that they don't receive all of their capital gains in the first year, but they will pay as they receive their money.  Make it a discussion to see what they want/need from the sale. 

If you do the deal, ensure you have your property taxes set aside, because with seller financing there is not an impound process to handle the taxes and insurance.  You need to think of that before it comes up (I know this the hard way...because I forgot).

I am not able to determine your purpose in posting this, since you did not also offer solutions for the seller or for the investor.

The situation does not unfold when the homeowner receives a solicitation, as the article mentions...it begins when they are late paying their obligation to their lender.

There is a timeline to a bank beginning foreclosure. Typically when the homeowner is 90 days late on a mortgage payment the bank may issue a notice of default. Depending on the State in which the property is located, foreclosure starts through a judicial process or a non-judicial process. 

It may be possible for the homeowner to talk with their lender's workout department and negotiate terms to pay off the arrears, penalties and late fees on a new schedule.  Perhaps the homeowner can turn back the deed to the mortgage holder, in lieu of foreclosure.  This prevents the foreclosure from damaging their credit for years, but also does not return equity.

The homeowner may consider selling the house on the MLS or FSBO. And they may consider selling the house quickly to an investor, who picked up on the process at the NOD stage, mailed a marketing piece, to which the homeowner responded.

There are opportunities at several stages here, for the homeowner.  Also, people who are motivated to sell quickly may find there are buyers who want to buy quickly, and at a discount.  

I have had 8 at my 3 bed/ 2 bath houses, largely because of the bathrooms.  Two parents and 4 kids seems reasonable, but my houses are really tight with more than 8 people milling about. 

That said, I am near the beach, and have a higher nightly rate at my 5 bed/ 5 bath house.  It doesn't book as frequently as the smaller house, but generates more income.

I'm going to say that, in the beginning, it costs more and takes more time than I expected.  Please source money before you "need" it. 

That said, I pay for electrical and plumbing always, because these cause a danger to myself and the property, and also because they probably require a permit on anything they touch.  Things I can do which add value and that don't require a permit: painting, tiling, installing luxury vinyl plank flooring, refinishing or replacing cabinetry.

Start by asking your lender. If the LLC has the same ownership (from you to you) many lenders will not have a problem with the transfer.

Oh, those older houses!  It's always something, isn't it?  I look forward to reading more of your experiences.  

Nice job!  

And a big Welcome to BiggerPockets.  Keep sharing your experience :D

Excellent framework for growing our portfolios

The only time I used cost seg was on a house that was over $1M and bonus depreciation was at max.  You have provided a variety of situations where doing a cost segregation study would be useful.  Thanks~

You’ve got a good system going, to find and get funding for these acquisitions.  Congratulations on your repeatable success!