All Forum Posts by: Sam Tright

I would like to offload buyer finding to an agency that knows how to place wrap buyers. Does anyone know such a firm. Ideally they market nationwide though I'm also interested in ones that focus on a few markets (I have no specific markets in mind)

Quote from @Eliott Elias:

Putting the property on the MLS will automatically populate on Zillow. It sounds like you are trying to compete with your realtor. Why even list it in the first place?

Listing it draws buyers through buyer's agents. Selling it myself saves the buyer's agent commission. I think it's a good idea to do both.

I currently have a property being marketing for an owner finance buyer at a fair as-is price. I am considering rehabbing it and raising the price as each piece is taken care of. On my list:

1. Roof leaks
2. Door, window, cabinet misalignments
3. Rodent infestation
4. Carpeting
5. Paint
6. Debris/sweep up

Each area would bump the price $4,000 or so if I were to split it evenly (total rehab from a contractor is $25,000).

Do you guys like or dislike this idea? I haven't heard of others doing it this way.

I used a flat fee listing service to get my property on the MLS. A broker I use allows trying to directly sell the property as well, and if I do sell it myself I don't pay an agent commission.

This made me wonder if I should have listed the property on Zillow as a fsbo.. does anybody know what Zillow would do if a fsbo is listed, and then the MLS pushes the same house to Zillow as a broker listed property?

Since note dividends are taxed at the same rate as regular income, and there are no tax benefit like depreciation or mortgage interest deductions, I am looking back to real estate to help avoid keeping 63% or less of what I make.

I want to minimize real estate related headaches though. I'm good at note creation, I don't actually want to hold property or at least manage it.

For those of you in a similar mindset, what did you end up doing? I've heard NNN commercial properties are a good low hassle tax shelter. Problem there is a dollar invested doesn't get you that much yield in tax savings. It's relatively low leverage in that respect.

1. Say a house is bought for $40k, $15k repairs needed. ARV $100,000. What is as is value? For a low priced house like this will you require an appraisal to determine it, or go off some desktop estimate?

2. Once as is value is determined, what percent of it would you consider as your collateral value when buying a 1st position note for say $45,000? If further details are needed please give an example and backfill your own example numbers to help me see the full picture.

Chris, it would only be sold to one person, the partial buyer. It may be used as loan collateral for a second entity, a lender. This is why I want to take out the loan first before partialing it.

What extras does the Realtor edition have, if any?

I'm focused on the non-disclosure state of Missouri.

It's a high leverage strategy no doubt. I have the reserves to weather defaults and my team knows their portfolio level numbers, so it's just a matter of getting note investors and lenders on board.

15 years payments and 50% LTV are the limits we're seeing for each individual method by the way.

I will create a note during an owner finance sale. I want to partial 15 (out of 30) years payments and also hypothecate it at 50% LTV.

I know you guys see issues with this so let's try and talk them out to find solutions.

A partialled note done via assignment is not collateralizable by the Assignor

My thought here is to hypothecate first, partial afterwards. This creates a new issue because I deal with small notes under $75k in value and need to bundle them to meet a collateral lender's min loan amounts.

A partial buyer will look unfavorably upon a hypothecated note

You guys think there's any wiggle room here for negotiation or would this destroy the note's value from the note investor's perspective? I have a list of maybe 15 note buyers and feel that if it's not an absolute deal killer, one will accept that they get the head of the note and my loan is 100% LTV against the tail.

If you have to partial first to build a note portfolio that meets minimum loan amounts for lenders, then you have an order of operations problem

The only thing I can think of here is to write in the partial sale terms that I have the right to take a loan against up to 50% of the UPB on the note and retain the full right to collateralize it for loan purposes, as if I were the sole principal. If you guys have any other ideas please share.