All Forum Posts by: Rick Pozos

Hey @Jeff Ryan, 

Let's say the mobile is worth 120k (which seems really high for a 25 year old double wide). When you sell, there are going to be realtor fees, property taxes, lots of costs. And the sale will not be immediate, so there will be lot rent also. Who is going to pay the lot rent for 3 or 4 or 6 months?? These are going to lower net to you and siblings. AND they are going to have to come out of pocket while it sells.

SO, offer the siblings less than the 120k, maybe 90k and they get 2/3 of that. People realize they are not going to get 1/3 of value whether it takes a month or a year because of holding and closing costs. Get the siblings on board to take payments for 15 years at 6% interest. It would be a nice little $200+ per month each for a while.

Instead of renting, owner finance with 10k down. Use that as a small down payment to siblings. Turn around and sell for full retail and at 9.9%. You will make $500+ per month!! You own a note that you could sell later if you need to. Or keep a nice little cash flow for 15 years!!

Hey @Vanessa Lule

Thats great that you are going out there and trying to make things happen. 

When I buy a property it is usually from someone who Really, Really needs to sell. Not just someone who has their property on MLS for 2 weeks. If it is listed, it has to be on the market at least 200 days. If not on the MLS, they have to be about to be foreclosed on, way behind on their property tax or some situation that MAKES them HAVE TO sell.

Same with rentals. You have to find rentals that are on the market for 3 or 4 months or more. Maybe something that needs just a little work, but in a great area. YOU let them know that you will rent as is (and fix the property for 1k or 2k). You will take care of repairs under say $200 or $300. I always let them know what I am doing and let them know about airbnb insurance or let them know that you will take care of repairs that tenants will do. 

This should put them at ease. Plus they are so happy that someone is renting that they rarely ask many questions. I have never done an application for a rental because they are so happy to find someone who is going to help them with their good location, but needs just a little work, property. AND I usually pay a little below market rent, but put a little into the cleanup or fix up of the property.

Directed marketing to pre-foreclosures, a website with seo, networking, driving for $$, go to some local meetings.

Of course it's possible. I have done it. I have found people willing to owner finance their house to me at a lower interest rate. I clean it up a little and sell it for more and a higher interest rate. I always try to get the seller of a property to seller finance to me. That is one of the several offers that I make to them. They will accept about 1 out of every 15 to 20 offers.

I have also gotten private lenders to lend on the property, but they usually want 8% to 10% on their money. You just have to focus on lenders who want security for their money.

What you do is charge the 1400 per month. In the description of your 1bedroom, 1 bath, you say that the space is a shared space. Say that it is part of a 5/2. They would have their own bathroom or you say that the bathroom is shared. Obviously 2 or 3 of the people would not have their own bath. That is something that most people want though, is their own bathroom. 

Maybe have the principal bedroom with their own bath at 1500 per month and two other bedrooms that share a bath at 1300 per month each.

I think you just found out the hard part, which is to find the lower interest lenders. Most people do not want to lend out money at 5% or 6%. Sometimes even 7 or 8% lenders are had to find for 3 or 5 years much less for 15 or 30 years.

Hey @Brian Willie your buyer is going to be someone who might not be able to get a mortgage right now. Maybe some credit challenges. Maybe a contractor whose income varies. You should go through an RMLO if it is a homeowner who will live there.

You are doing a wrap loan. Bump up the price to market price or maybe a few % above if the house looks good and is in good shape. Since the buyer is not able to get bank financing, you are charging a few % points higher.

So your $289k house might sell for 320k at 9.9% for 30 years. I would ask for 5% to 10% down payment. You make the difference from your payment and theirs. Set the terms right and the profit will follow.

It's kinda the way things work. Low cap rates because you dont have to do anything, just collect the 4% or 5% like a CD at the bank.

10% Properties are going to be more involved. Get rid of crappy tenants that have been there for 20 years and still paying $500 per month instead of $1500, but it's a $hit hole. These will take some cash to get up and running.

Maybe look for properties that are a little higher cap rate AND might have some room for rent increases or ADUs or some other way to boost income. THAT is how you are going to get a great deal. YOU have to find ways to increase the value of the property.

You have to look at plenty of properties and find the one that will work for you. If 4% does not work for you, go on to the next one. You just have not found the right property.

AND YES, some people just ask crazy stupid prices hoping that someone will pay for it. Keep walking.

I have purchased and sold properties where the wrong lot description was put on the deed. I basically bought or sold the wrong property. Mistakes happen. They found the mistake. Go fix it with or for them. It is your obligation!!

I am sure you signed papers that say that you will fix any errors that were made, just like this case. I am sure you were joking, but they do not owe you anything to fix mistakes that were made in paperwork. 

Karma baby!! Smile, fix it, keep going.

Hey @Erich Hatch if you find someone who will lend or purchase a 30 yr loan, let me know. I would love to find a person, not a company, who would lend for 30 years or even 15 or 10 with a balloon.

I have friends and family, but even they want to be paid back in a year or two. I guess it is just marketing to people with longer horizons than 2 years.