All Forum Posts by: Pride Davis

Real estate investing for Dummies was my first, but hands down the most influential was Cash flow quadrant. I actually read this one before Rich Dad and it completely changed how I viewed everything!

What is your strategy?

I was wondering the same thing as @Amy D.. Also, could the issues with the wall not being supported have been avoided by pulling permits and having city inspectors insect every step of the project? 

Im not going to lie. If the numbers make sense for me, I do not hammer the whole seller over a couple thousand bucks. I am paying them for the convenience of not having to search and convince a seller to sell. If I wanted the absolute best price, I would approach the seller directly. 

@Andoni Garcia I am currently trying to refi an out of state rehab I completed this year. I haven't had much luck. If you get some good information on this, please share. Thanks in advance. 

In the How can a college student get started? discussion, the author asked "[w]hat would give the owner the security of knowing the transaction would be beneficial for both parties?" This got me to thinking. Can you get private mortgage insurance on a seller financing note. If yes, how and who provides the service. If not, why wouldn't someone  insure seller notes? 

@Casey C. Have you used the FHA loan before?

@Steven Zamorano Admittedly, I have never actually gotten the owner financing option accepted. When I do offer it I present it to owners that either own the property free and clear or have a low enough loan balance that I can pay off in the form of a down payment. There are a lot of ways for the seller to ensure a smooth and fair transaction. A lot of what would make them comfortable has to do with what their goals are for disposing of the property in the first place. So lets make up a scenario: 

Seller owns house that they rent by the room to college students. The owner manages the property themselves and does not want to use a property manager. The owner desires to move across the country to help take care of their grand kids that are now at home full time. Lets look at the top three benefits to the owner using owner financing: 

Ability to defer taxes from the sell of the property. 

Still receive monthly income without having to manage the property.

Ability to sell the note if their plans change in the future.

I feel like I didn't answer your actual question, but at least we have started the discussion of why the seller would even consider this option. Starting the conversation is the hardest part most times. Right?

What was the deal? Did you post in the Deal Diary?

@Kade T. Brunson I have had leases that had home purchase clauses in them. Where you are released from your lease in the event that you purchase a home. Might be worth giving your lease a read to see if that is in there somewhere. If not most owners will work with you. Worst case you can negotiate a lease termination where you are liable for the rent until the property is re-rented. Sounds a lot worse than it is. I have done that twice. As far as the purchase of the home you are currently living in... it all depends on the terms. Have you run the scenarios through the BP calculators?