All Forum Posts by: Michael Jones

Hi @Art G. Thanks for taking the time to reply. Maybe I wasn't clear in my ramblings. I'm not looking to wholesale the house. I want it for a buy and hold rental property. An investor, like myself purchase this home with the same intentions. He knew the house needed $12,000 in repairs, but he got such a screaming hot deal on it he bought. So, now he's has $11,000 tied up in the house for the down payment and to do anything with the house he's going to need to tie up another $12,000 to either sell it or rent it. Since the start of the deal he's now came across some other deals he's interested in. He can make the payment on the house, he's just not in a position to do much more than let it sit at this point. My thoughts are maybe I can get him to owner finance it to me for say $75,000, that way i don't have to put $11,000 down for financing. Maybe work out a deal where I pay him $200/month for cash flow on his investment, until a year or so is up and I can then get a new loan/refinance in my name. I can swing the $12,000 in repairs and have it on the market in a month or two. I just can't swing the $23,000 cash to do the deal completely on my own. 

If all of this sounds legit, i guess my questions are:

A) Is this even legal?

B) When it comes time to put my own financing in place, will it be a type of refinance requiring me to only pay closing costs? or will it be an entirely new loan where i will need to put 20% because it's an investment property.

I can secure financing. I have good debt to income, good active income, great credit. I'm just cash poor right now due to dropping almost $18,000 on another investment property. 

I know the guy, so I think I could get the deal done. It will give him his money back in a year, plus $5,000 in profit, plus the $2,400 month over his current mortgage. And if i don't have to pay the 20% down on top of the $10,000 in repairs, it should be a good deal for me. So very mutually beneficial. 

I need help analyzing a deal. Here's the situation:

A home is being purchased by an investor for about $70,000. He's committed to closing, but has since found some other deals he wants and is looking to free up cash. The house needs $12,000 worth of work before anything can be done with it, rented, sold, etc. So that puts them out of the roughly $11,000 for the down payment and then another $12,000 in repairs. The house will easily be worth $105,000-$110,000 when finished and probably rent for around $850. I just purchased a house so i'm cash poor. I'm not familiar with the BRRR strategy. How could we make a deal that would be beneficial to the both of us? Maybe some kind of owner finance??? Me take possession of the house so he's not out anymore cash and he can start generating some income? I could use a HELOC to fund the repairs and get it rented. I'm guessing his monthly payment is around $456. How would everything work if we maybe agreed at a sell price of $75,000 and payments were based on no down payment and say a .5% higher interest rate? How exactly would a deal work if we were to agree that in a year the house would then be sold to me and everything transferred to my name? Would i be out the $12,000 in repairs as well as 20% for a Fannie loan? Or could something work out where there could maybe be some kind of cash out or something? Any ideas or other creative ways of making something like this work? Thanks!!