All Forum Posts by: Rumen Mladenov

Thanks @Jeff Rabinowitz. Would a land contract trigger due on sale clause? If not, perhaps I should consider a land contract rather than a lease purchase...

I was approached by a homeowner who wants to sell her house off market. I do not have the liquidity to buy it outright at the moment, but expect to be able to do so in a couple of years. I first thought about "subject to" deal, but I am not comfortable with the risk of the "due on sale" clause. So I am now thinking of a way to use a lease purchase instead. Assuming a sale price of $95k and current mortgage amount of 80k, I plan to structure it like this:

Lease option fee paid to the seller: $15k (equal to their equity)

Monthly payment: equal to the mortgage payment (I plan to pay the bank directly)

Purchase price: the payoff amount at the time of the purchase ($80k minus whatever principal was paid down)

This way, the seller gets their equity and gets rid of the mortgage payment. I get to rehab the property and rent it out (sublet).

My concern is, how do I prevent the seller from taking a HELOC or something without my permission? Can I record a lien based on the lease purchase agreement?

Any thoughts and advice would be appreciated.

@Marcus Jones, @Bobby C., looks like the next project would start sooner than I expected. It is a house in Bear DE which will need new baths, new flooring, possibly new kitchen etc. Some drywall patching, painting, exterior damage fixing (mostly rotten soffits/fascia boards), and a lot of junk removal.

Let me know what your availability is in the next few weeks.

@James Masotti, are you talking about Brian O'Neill? He is a good guy, I have worked with him before.

@Damian Howard, you do not have a picture so I will not recognize you, but if you see me in there tomorrow, stop by to say hi!

Marcus, if you want some hands on experience, feel free to reach out. I do not currently have a project, but I expect to have one within a month, and I always welcome newbie investors, especially the ones willing to give a hand in the rehab :)

@Damian Howard I plan to go there. I have attended 3 auctions already, and eveh had a winning bid on one of them. Are you planning to bid, or just watch?

If you buy materials from Home Depot, there is something you can do to save more than the 2% cash back - at least that was the case for the past couple of years. I overpaid my taxes on purpose, so that I can get a tax refund. I used H&R block at home to file my taxes, and took advantage of the 10% bonus if the refund is received via gift card. I opted to get the maximum of $5,000 from my refund towards Home Depot gift cards, and ended up with $5,500 to spend at Home Depot.  

Passing a bad check to the Sheriff? Not very smart IMHO...

Owner occupied period and BRRR / hard money do not mix well. BRRR is for rentals. If you buy from HUDhomestore during the owner-occupied period and do not intend to live in the house for at least a year, you would be breaking the rules regardless of the financing... If you do intend to live there, getting a hard money loan will be difficult because hard money lenders generally avoid financing primary residences.

I considered a 203k loan at some point, but I found out that DIY work is no longer an option and all work must be done by approved contractor. That was a deal breaker for me.

I would recommend Michelle Hunt as an investor friendly agent. I have used her exclusively since 2005. She is a buy and hold investor herself, and also has a property management company. PM me for her contact information if interested.