All Forum Posts by: Patrick Britton

@Jay Hinrichs thanks Jay I think i might just do that and see what happens.  worst thing they can say is no.  :)

If buying a property with cash outright, would it not make more sense to write and sell your own note on that property instead of doing a conventional cash out refinance? The market will dictate the rate and terms, but seems like you could get much more money back than 75% of LTV. The interest rate might be higher, but perhaps the reduced expenses will offset some of that increase, or?

@Brian Olson if you're after cashflow in WA state you'll probably need to look in areas well outside of the larger cities.  Spokane might still have potential as should Bremerton, but you'll be hard pressed to find something in Tacoma anymore.  Doesnt hurt to look but i wouldnt get my hopes up.  I believe Yakima might offer some decent cashflow deals, and don't forget the smaller college towns like Pullman.  
Often overlooked are condos.  Yes, they have HOAs and many dont allow rentals, but they are often 30% - 50% cheaper than single family.  

Of course, all of this depends on what you consider cashflow.  Are you thinking a certain dollar amount per door?  Before or after financing?  Or are you looking at cash on cash return?  

@Ed Emmons yes 1st position.  not sure why there's not discount.  looks like minimal risk hence the min reward.

@Ryan Blake  you are correct.  i am not thinking about this correctly.  thanks for your reply :)

I am looking at buying a performing note in Fresno, CA.  Outstanding balance is 26k and purchase price would also be $26k.  House value is 175k.  Payment amount is about $450/month.  

If I purchase this note for $26,000, I will receive $450/month, right?  This means the return is over 20% since $450/month is $5,400 a year.  Yes, I know this note has only a few years left (2025), but 20% with so much equity seems pretty decent.  Am I missing something?  

@Carter J.  i prefer buying turnkey properties but the trouble is with the appraised value.  you are literally paying for the turnkey providers margin, which i think is fine, but an appraiser will have issue with that and likely to come up with a value less than asking price.  

@Lakeisha Baker  if the realtor is new, they will want you to sign something.  If realtor is experienced, they won't.  

@Hai Loc  I like the idea and everything but not quite ready to buy anything.  i'm still trying to get my rentals to behave properly :)   Feel free to send me details though.  you never know.

@Risha Walden

1. do a cash out refinance as opposed to a HELOC
2. seek out a commercial lender 
3. write a note on the property and sell that performing note to a note investor

@Bara Nwokoma frankly I would pass.  The risk factor is considerable when you have little confidence in a specific sales price.  There are lots of houses out there, so there's no need to take on additional risk.