All Forum Posts by: Mason Hickman

@Carla Jones

JV stands for joint venture.

Quote from @Brett Peterson:

What is a good place/site to find apts to buy for Section 8?

Search the mls with key terms regarding tenants and rentals and then manually filter for them. You can also pull the section 8 rent schedules and do a price comparison of rent vs average home price in a town/city to generate areas to pursue more heavily. 

Quote from @Mary Eubanks:

Where can I obtain a POF to submit to a buyer if asked?

Your hard money lender can also provide a letter that you are a customer and have available funds as a letter of credit. Better than a pre-approval for a traditional loan but doesn’t require you to have the cash sitting in the bank. 
If it is an MLS transaction, your offer won't go anywhere without the POF or pre-approval. Off market can go either way.

@Mike Schoonover

What’s the main reason for wanting to offer seller financing? Since you just inherited the property, it should have a stepped up basis so capital gains should be very low, if any. 
Also, don’t draft a note on your own. Pay an attorney to get it done right. 

Quote from @Eliott Elias:

I am targeting assumable loans for my buyers. People who locked in 2-3% and are happy to walk away with a down payment 

I like this idea of the assignable loans but don’t see many of them, have you been having repeated success?

@Brandon Bass

Confirming you don’t have a loan on the property because that could trigger a due on sale clause. 
You will essentially be the bank so you should get comfortable with this guy you’re going to lend to. Learn what his exit strategy is within the 3 years. Run an application on him (similar to what you would with a tenant).

With 20% down, he should be able to get conventional financing on a primary home so why does he want the owner financing? It’s because he is likely un-lendable. Ask the agent the other houses she has done for him and pull the registry information to see if it adds up. 
Dig deeper! It isn’t because “he’s a private guy”

@Steven Barr

Limited Power of attorney 

Quote from @Gopichand N.:

How do you negotiate when paying full cash for a $400k SFH ?any thumb rule(s) on how much to bargain for ?

Having the ability to waive financing contingency which can fall apart for numerous reasons( appraisal, lost job, etc) is definitely worth something to any seller. Two equal offers one that is cash and the other that is financed, the seller will take the cash all day long. Therefore, it’s worth more than a financed offer. How much of a discount, you ask? You’ll find out by negotiating the same as any other purchase. 

@Lance Mundo

Having the concession as cash back at closing will put more risk on the appraisal due to the higher purchase price. Reducing purchase price obviously reduces the monthly payments, etc. It's really your call but a concession, any way you cut it, is good. 

@Matt D.

Cap rate will vary widely based on market. Is this an A market with rapidly increasing population and jobs or in a tertiary market with declining population and no job growth?