All Forum Posts by: Marcello Di Gerlando

@Mark Miles

what exactly is an an off-shore designer? do you have recommendations or examples?

Depends on your state and county. I would start with the county assessor and county Trustee, sheriff is also an option in some counties. In Colorado I search for 'NEDs' Notice of Election and Demand. Basically it's the bank identifying loans in default. Good luck.

@Will Gaston @Todd Dexheimer @Ori Skloot @Reece Iovine @Marilyn Savage

Thankyou all.

I posted variations of this question on several BP forums. none of the responses have been as comprehensive and grounded as you have all contributed. I found the pros it seems. 

I took a page from everyone here and put an offer in today. Thanks all! fingers crossed.

PUD is a zoning designation. Distinguished from others like single family zoning , industrial zoning, commercial etc. Be sure your proposed STR is allowed in a PUD zone. Here in Colorado Springs, I'm pretty sure STRs are prohibited from PUD zones unless they are owner occupied.

@Bruce Lynn @dan 

@Dan M. 

Gentlemen. kindly and respectfully.

I would like to put an offer in for a multifamily property that's in a fixer upper condition where the owner is asking above market.

My understanding is that the owner may entertain seller financing. So, as the buyer when in the process do I suggest financing terms? what other techniques should I be considering?

I put in a low ball offer on this same property and it was rejected out right. The property went under contract pretty soon after until the bank did not come through for the other buyer. The seller agent has reached back out to us because our original offer was all cash.

I believe I have some leverage here but I don't have any experience with owner finance deals and I want to get this property at the best possible price with seller financing if possible.

Should I just suggest financing on my initial offer? or low ball again and wait for a counter? then get into the weeds with seller financing. maybe get a verbal form agent to agent prior to a formal offer? or suggest specific terms right up front etc. etc. ? what's the recommended approach? any other tips would be great.

@Spence Kal

when? when should I suggest seller financing? 

First. Push the closing date to the right.

If I were in your position I would turn that gift money into a commercial loan. Draw up the terms between you and your investor any way you like as long as its legal. 30 year term, 0.01% interest, 2nd position, interest only etc. etc. You will want to make the terms as favorable as possible so it doesn't effect you debt to income concern with the 1st position loan you will be getting from the bank.

Drawing up terms can be as simply as a promissory. Getting it filed with the clerk and recorder may also be necessary. You could get an attorney to draw up the note but I would keep it simple. I'm assuming you are in a 'side' arrangement with your investor that is not documented and this is why the funds are gifted. Just insure you stay legal. 

If you intend to live in the property my suggestion of a commercial note would be in violation of some regulations. but if it's an investment property you are good to go with any terms you like.

Come to think of it you could just take an unsecured personal loan from your friend with the same favorable terms without encumbering the property at all. I suspect that filing the promissory note with the county clerk and recorder will legitimize the note in the banks eyes. Remember keep your debt to income ratio where the bank will still approve your original loan.

Good luck

Hi all, long time BP member here, never posted on this forum.

As concisely as I think I can make this post:

Q: When is it appropriate to bring up seller financing? at the initial offer or later in the process?

My experience with real estate purchases has exclusively been cash purchases. However, an opportunity has presented it self where the seller, apparently, will consider owner financing. I already made a low ball cash offer on this same property earlier this year and it was rejected (property is priced way above market in a fixer upper condition).

A subsequent offer by another buyer fell through due to bank financing (predictable). Now, the seller has come back to me to see if we are still interested. I think if the seller would consider financing I would increase my offer from my initial low ball, but, when exactly should I suggest or include financing terms? at the initial offer or at some later date?

My original low ball was, as is condition no contingencies close in 30 days. I would consider increasing my offer but it will have to include contingencies, inspections, financing etc. Any experience, suggestions or a different approach all together? please let me know.

Seeing the numbers with seller financing is appealing so any tips or tricks to maximize my returns and securing this deal would be appreciated.

Respectfully.

Hi all, long time BP member here, never posted on this forum. 

As concisely as I think I can make this post:

My experience with real estate purchases has exclusively been cash purchases. However, an opportunity has presented it self where the seller, apparently, will consider owner financing. I made a low ball cash offer on this same property earlier this year and it was rejected (before you pro agents bite my head off the property is priced way above market in a fixer upper condition). 

A subsequent offer by another buyer fell through due to bank financing (predictable). Now, the seller has come back to me to see if we are still interested. I think if the seller would consider financing I would increase my offer from my initial low ball, but, when exactly should I suggest or include financing terms? at the initial offer or at some later date? my original low ball was as is condition no contingencies close in 30 days. I would increase my offer but it will have to include contingencies, inspections, financing etc. Any experience, suggestions or a different approach all together? please let me know.

Sorry if this is a dumb or obvious question.

Respectfully.