All Forum Posts by: Ryan R.

That's true Callum Kerr. I guess the 20% does help cash-flow more from each property. Do you have a target cash flow goal for each property?

I like your thinking Steve Babiak.

What if I offer to do owner financing and instead of 10% or 20% down payment, I put $10,000 worth of upgrades into the house? New floors, paint, appliances, tile showers etc.

In the event that I default, the owner still gets the benefit of a down payment; but at the same time, my money is working for me instead of sitting in her bank account?

Thanks Guys, this is why I came here, dang good advice. Brian Hoyt I'll be sure and keep a lookout for that white unicorn; I'll send him north if I corral him!

You're right Altin Velaj. I guess I'm just scared about doing my first owner finance deal.

Thanks Brian Hoyt. May I ask how you went about acquiring your properties? Did you put down 20% on each one? OO purchases? Owner Finance? Mix of each?

I know that it will be much easier, emotionally, for me to put down 20% if I know that it's the norm. My assumption, apparently wrong, was that the pro's had some simple techniques to get around this.

Thanks Zachary Dosch i've actually considered that too. My target market is middle to lower middle class, so the properties I have in mind will sometimes be borderline acceptable for my wife and kids.

What is the penalty if I purchase as OO and rent it out before 1 year?

Brian Hoyt Brian I appreciate your response. I think I may have given the wrong impression when I said that I sometimes tend to be a smart*** when I don't agree with their response/policy.

I'm not acting like an **hole or belittling the person I am speaking with; rather I am asking questions that are outside the box. Sort of like when your kids turn questions back on you that you cant logically answer and cause you to think. My last intention is to be rude or arrogant. In fact, I consider myself a gentleman in what is becoming a disrespectful society. I digress.

I've spent some time on these forums trying to learn from y'all and what I have learned thus far is that the truly successful individuals have always asked "why" or come up with ways to get around problems.

As a new investor, wouldn't you be more worried that I would just accept someones advice over the phone about a large sum of money before consulting with pro's, you guys, and asking questions to try and circumvent this 20% down rule?

Callum Kerr So you have never seen anyone do less than 20% ever? That's a little discouraging to me.

What do you think about my property that I refinanced without putting down any cash other than closing costs? Why would they be willing to assume an investment property note with only 20% equity and no cash, but not assume a note as a new purchase? It seems the risk is the same, especially since the property I am trying to acquire was previously a rental property.

Side note: The owner did an owner finance with the last tenant. They defaulted after 2 years. She said she is willing to owner finance but I am timid about that. I know that logically there is no difference between the two.

That makes total sense Altin. Although I didn't share much personal info with her, I try to keep it professional.

I've worked on commission so I understand what you mean now. When she said "pretty much" there is no way around the 20% down rule, she meant that she won't make as much money if she does the loan at 0% down.

So now I have to find a loan originator who is willing to make less on the deal for the same amount of work; or I have to find alternative means of compensating said originator through means which may be considered outside traditional boundaries..

I tend to be a smart*** when I don't like a company's policies.

Maybe I should tell them I just want to refinance this property and change the name to mine. Maybe that'll work..