All Forum Posts by: Nuhan Demirkan

Roman, have you considered using her as a bank rather than a partner? She sounds like she is a bit more conservative in her numbers than you. Maybe you can make her a less risky offer as a lender if you are confident that your numbers are correct. 

Am I crazy to think that it is irresponsible to recommend her to borrow $250K when she is planning on quitting her job and moving to a new state where she does not have a new job lined up? Plus she wants to keep her condo in SD as a rental? My recommendation would be to sell your condo in SD (hopefully you have some equity). Take the cash and put it with your existing cash. You're gonna need it starting out new in Nashville. Rent for a year, learn the market, educate yourself in different investing strategies. Keep your expenses low until you find a good paying job. Then start looking into investing. I know you will lose the opportunity to borrow the $250K. But it just doesn't make sense to borrow when you don't have any income. Your plan is very risky. 

Good luck

Find out why the seller wants to finance it for you. If it is for monthly passive income using her equity in the house, obviously she wants to keep the payments going. She may ask for an early payment penalty when you are writing up the deal. I would bring up the scenario upfront and settle on a prepayment penalty that you can live with.

If the seller wants to finance it because that is the only way she can sell the house, she may want the cash rather than payments.

I agree with the above posts and would like to caution you on who and how the utilities will be paid as well. If the remaining tenant is going to attempt to pay for everything it may put her in a financial difficulty to pay the rent on time.

Hector, I purchased with owner financing. The home was owned free and clear and the seller's motivation was she was tired of being a landlord. I asked her why she was messing with tenants, termites and toilets when she can be the bank. I explained the benefits of being the bank and securing the loan with a property she already knows. Plus you probably will do some upgrading to the property thus increasing the value of her security. Explain the following:

- Dead money_ sits in a savings account with very low interest

- Safe money_ sits in a CD or mutual fund

- Healthy money_ invested in your business

- Wealthy money_ safely lent out with good interest for monthly passive income

Ask them what do they plan to do with the money? Then see if you can offer them enough down payment to take care of their immediate need for cash and finance the rest at a good interest rate. I usually pay around 5% interest, 30 yr amortization with 5 or 10 year balloon.

I actually wrote about this and have a videos explaining various strategies a seller has to sell their home. It should be up and running by this weekend. Check it out

www.cornerstonerealtypartners.com/myoptions

Not everybody is going to take your offer but if you keep asking some will.

Hello Ethel,

I am in Southern Maryland. I have been investing since 2005. Let me know if you need to bounce some ideas. There is RE club here in Southern Maryland that meets once a month if you are interested.

Good luck

Nuhan

Hello Luis,

I have no knowledge of GA real estate. But I am an investor and can offer a few ideas for you to consider.

1- Is your contract for the new house is contingent on selling your old house?

2- if not, can you afford or qualify for a loan with two houses, especially after January 10th?

3- If you are financing the new home the bank will ask for an appraisal which will tell you if you are getting a deal or not. You should put a financing and appraisal contingencies in the contract for the new home.

4- Assuming you (and your family) are going to live in the new house there are a whole slew of other items for you to consider ie: school district, neighborhood safety, travel time for work, etc.

I wouldn't worry too much about getting a deal on a house I'm going to live in unless it is for a very short term. Just make sure you can afford it and will be comfortable in it. In my opinion my personal residence is not an investment.

In your situation, my focus would be on selling my current home quick at a price that is acceptable and the new home I'm buying is where I want to live.

Hope this helps.

Hi Kimberly,

Welcome to BP.

Many people have reservations on pulling the trigger on their first deal. It has been said that "money and success are on the other side of doubt and fear". The first thing I would recommend is to establish your investor identity. What type of buy and hold investor are you - cash flow, appreciation, amortization, depreciation or a combination? Once you decide your identity analyzing deals based on that criteria will help you make better decisions. If still indecisive I suggest getting a local mentor who has the same investor identity as you and currently doing the type of deals you are considering will get you off to a good start.

There is nothing better than getting mailbox money every month.

Good luck

If disclosed properly, the seller should not have an issue. This particular listing can only be sold to a rehabber. Average buyer could not get a mortgage on it. The "motivated out of town" seller knows that I intend to make money on it either rehabbing or wholesaling. As long as he gets what he is promised he is OK with it.

I don't know Bill but the person at the MLS office was their compliance officer and she knew exactly what I was talking about. She did not seem to have any problem with assigning the contract as long as I put in the clause "contract purchaser" in the listing. I went even further and specified in the listing that this was an assignment of contract. And the agent who called me for the showing this morning knew exactly what I was doing. I guess in terms of disclosure I covered my bases but I will still check with the local Board of Realtors to be on the safe side. Thanks for the heads up.