All Forum Posts by: Marshall Easlick

Duplicate post, so I removed it.

@Eddie Aviles, I don't have a ton of experience but I've been on my education track for a while now. First and foremost, I would suggest contacting the seller and meeting for coffee or a beer or something. Just meeting the person face-to-face is important. Find out why they are selling and that might give you a segue into talking about seller financing. If they are old and near retirement, talk about a steady income to supplement social security/pension plan/401k. Make sure to mention the tax advantages of seller financing: they will be able to stay in a lower tax bracket and just generally keep more of their money.

If they are on the fence about providing seller financing, offer to let them come up with terms if they will provide it to you. Obviously, you'll want to take the contract to a lawyer before signing it but this will take the burden of coming up with a contract off of you.

I hope this helps, or maybe even provides a starting point.

@Brady Lamprecht, I liked the idea of using retirement funds to purchase properties until I realized that the whole point of my investing is to retire early, well before 59 1/2 years old. With that in mind, I only contribute to my employer's 401k to get the matched money because I like the idea of being able to borrow money from it. I was doing a lot of research into retirement savings and investing to help my mom make some decisions and the solo 401k seemed like the best option (she is self enoloyed) and the closest similar thing is a self-directed IRA, which sounds like a lot of work trying to avoid prohibited transactions with disqualified persons and keeping all transactions at arms length. You probably have enough input in yor thread here but I thought I'd give you my two cents. There is a custodian called Sun West Trust located in New Mexico that comes recommended by Dave Van Horn. They have a lot of information available for free, including a book that they will mail to you.

@Michael Guzik Something you may not have considered but might seem insultingly obvious is that the money you're paying for the car could be used towards the down payment on your first house. Again, I am not trying to insult you here but sometimes the obvious things get lost in the details.

@Tracy Z. Rewey  I see what you mean, thanks for clarifying. I guess I was just confused by a little ambiguity in the statement itself. 

 It sounds like you're saying that the intermediate person in that deal was basically wholesaling without a double closing or assigning the contract, if you could even call it wholesaling without either of those things happening.

The deal was closed with owner financing and it was sold to an investor after one payment. So, the person who obtained owner financing basically brokered a deal between their investor and the original owner for a $5,000 commission but they also took assignment (is this the right term?) of the note?

I don't really follow the math in your example. Would you mind elaborating a little?

How did they come to that number for the down payment?

How did they come up with that monthly payment number?

-Marshall

"If you decide to learn note investing by doing I suggest referring a few notes for a referral fee at closing."

What do you mean by this, @Tracy Z. Rewey?

This is a little off-topic but since both @Bob Malecki and @Dave Van Horn were already in here, are websites like The Paper Source University legitimate? I have been checking out a few websites like it and they just want me to sign up for everything, ie they seem desperate for email addresses. 

Ok, good. He obviously isn't interested in earning commissions. When I was typing my last response I saw an ad on the side of the web page for Finance of America - Commercial. I haven't looked into it in depth but it looks interesting, may be worth a look for you.

https://www.foacommercial.com/?landing=success&fhid=0417-bigger-pockets#gf_25

I recently purchased a SFH as my primary residence, moved out of my old house, and turned it into a rental. I encountered DTI problems too because to calculate my rental income into the DTI, I had to have collected that rental income for a minimum of two years prior to obtaining the new loan (this is probably the case for you).

We got around this by writing a contingency that stated that I had to have a signed lease and security deposit in hand for the house I was living in before securing the loan for the new house. This freaked me out at first because I was renting out the house I was living in before getting another place to live but the more I thought about it the more I realized that this was a desirable situation for me, as well as the lender.

I am single, so I haven't had any dealings with spousal financial law but I think that even if he wires the money into your joint account, there will be some strings attached with gifting. You may also want to look at how much can be given without it being considered a gift in the eyes of the lender.

Have you asked any of these questions of your lender? I have dealt with two separate, big bank lenders and they were both eager to give me the loan, so they answered whatever questions I had and worked with me on them. I wish i could give you more definitive answers but I hope this helps.

I recently purchased a SFH as my primary residence, moved out of my old house, and turned it into a rental. I encountered DTI problems too because to calculate my rental income into the DTI, I had to have collected that rental income for a minimum of two years prior to obtaining the new loan (this is probably the case for you).

We got around this by writing a contingency that stated that I had to have a signed lease and security deposit in hand for the house I was living in before securing the loan for the new house. This freaked me out at first because I was renting out the house I was living in before getting another place to live but the more I thought about it the more I realized that this was a desirable situation for me, as well as the lender.

I am single, so I haven't had any dealings with spousal financial law but I think that even if he wires the money into your joint account, there will be some strings attached with gifting. You may also want to look at how much can be given without it being considered a gift in the eyes of the lender.

Have you asked any of these questions of your lender? I have dealt with two separate, big bank lenders and they were both eager to give me the loan, so they answered whatever questions I had and worked with me on them. I wish i could give you more definitive answers but I hope this helps.