All Forum Posts by: Michael Moikeha

Thanks @Charlie Fitzgerald, but its not every day that you get a deal with amazing owners willing to carrying contracts. I closed on 3 properties last month, none of them owner carry. I really want to leverage their funds here to get the most returns I can, vs paying higher interested on larger amounts to meet lending requirements (I totally understand lender requirements though).

I will keep your information for sure and see what we can do in the future. 

@Chad U.

Can they at least send you copies? They usually keep copies don't they? This way you at least have some information on it for your own records.

Hello,

I have a great project lined up and I am looking to finance a small portion of it.

ARV - $690,000

REHAB - $100,000

PURCHASE - $450,000

LENDING REQUIRED - $170,000

Purchase is being made just under 80% ARV Less expenses, but the best part is that the owners are financing 85% of the deal. The problem I am running into is that my lender is large enough that they will only lend in 1st position, but I am looking for a 2nd position lender at $170,000. I will also entertain a JV Partnership or HM that would take second position.

Check out my FB page to see some of the other projects we have going on right now.

I have hyperlinked the following additional information below:

Property Information

Investment Packet

Great negotiating there!

I live on the West Coast in Portland, so I have no info on GA for you, but my city is HOT! It has been the number one place to move over the last 2 years (determined by data collected from trucking companies that move people intranationally).

If you would be interested in partnerships on deals outside of your current areas, let me know.

I would contact your Escrow officer or your Attorney, whoever was supposed to record on title the sale. They should be able to help you figure out what the issue is and if there even is an issue.

Stop talking to big banks, they have their set guidelines and they wont go around it. You need a small local bank that manage investments for themselves, then you can get in and talk to a decision maker. 

As long as they are in first position, AND you have skin in the game (seller financing doesn't count) then you have a deal. Your best option is to tie it up on contract and try and wholesale it, or find yourself a money partner and split the profits 50/50. You do the work and management he brings in the 20% needed for skin in the game (and it should just be 20% of the bank loan at $3.5M instead of $5M which will make a difference. Set up terms that make it so you don't have to pay out the seller financing for a few years and hopefully you can refinance after a few years and pay off the last bit. 

That is my 2 cents. Hope this deal works for you! Sounds like a good one!

Out of state should not matter. The bank will be looking for a JV Agreement. It doesn't need to be complex, but there does need to be one. Google JV Agreement if you want to write up your own, but as always, you are best of seeking legal advise.

If the loan is personally guaranteed, the lender may work with you. You would have the best chance with a smaller bank where you can meet with the decision makers. You could also buy as Your name & families name on title. 

Before deciding terms, ask them what returns they want. To most truly private money people, 6% is a great return. So don't shoot yourself in the foot by trying to figure out what to offer them before knowing what they would want in the first place. 

Hope that helps.

Hello! 

I have a great project in Portland, OR. We are looking for partial financing for the project. 

Here is the breakdown on the property —

Purchasing Price $450,000

Budget $100,000

TOTAL $550,000

After Repair Value $650,000

Owner Financing $382,500

Loan Amount $170,000 in 2nd position

We have the closing date extended till March 10th.

This property is a great home in the SE Richmond with a street level entrance to the full hight basement area which will be finished out into a legal permitted ADU. The main house needs normal updates but is in great condition.

Looking forward to doing business with you,