All Forum Posts by: Kim Handelman

Well, that's not good news! Wow I learn something every day. THanks for taking the time friends! 

Hi all, I am trying to put together a deal and the seller isn't happy with the numbers my calculations support. I am hoping to offer him seller financing where he holds the note for 3 years at 6% which will net him closer to the number he's looking for. I also have heard there are tax benefits that can save him a ton if the sale is amortized over 3 years. How does this work can anyone explain?

I started with a $1000 which relatively speaking is no money. I am still working at it. I began last fall and i bought business cards ($9.99 on Vistaprint) and then designed a big ugly postcard (yellow "We Buy Houses") and bought a list of absentee owners in my home town ($66) went back to vista print and sent out a mailing to 376 people ($189) got no responses sent it out again and got one call. Nurtured that relationship for 8 months - yes 8 month later I wholesaled that deal for $15,000. I now have the seed money I need to properly promote my business. So if anyone says it can't be done on a shoestring, they're wrong. THERE'S ALWAYS A WAY! 

Hi Everyone,

I have found a 4 unit property that cashflows well at a price I know the seller isn't going to like. I thought I'd offer him seller financing and show him how he could save on taxes and make more on the property by holding the note. How do I calculate interest to show him how much more he'd make over the life of the loan? I seriously need to know how to do the math. And, I know he won't want to hold the note for long since he's 84. Do I tell him interest only for 3 years and then get bank financing assuming in 3 years I'll have enough of a track record that banks will finance me? I'm new so I don't even know how to figure out interest only. Is it calculated by month or by year? Thanks in advance for dumbing it down for me.

I was just thinking that. I'd be buying with no equity. CT has still not recovered but you never know, it could go down even further. Thanks for pointing this out. I would have to get it pretty low to feel like I could cash out if I needed to and not lose my shirt.

Thank you all for your input. @Mark Gallagher the financing thing could be a deal breaker. I currently have about $20K available. I was hoping to put $10K down and get regular bank financing and then the other 10K in a slush fund. I'll have to look into private lending but that'll cut into cashflow. Ahhh, I learn something new every day! Thanks again.

Hey All, I'm currently wholesaling in CT so I can save to get a down payment for some rental properties. I got a call on a mailing I did from a guy with a condo that is cashflowing close to the 2% rule ($50K and renting at $950) I started looking at comps and see there are plenty that realtors are promoting as "Investor Heaven!". If you know CT then you know it's really difficult to find anything at the 1% rule much less the 2% rule. This would kill 2 birds with one stone - 1 - I can afford it and 2 - it cashflows well! The man that called me from my mailing has been renting this one for 9 years. So it's safe to say at first glance.

MY QUESTION IS: Am I crazy to buy a condo for an investment? I've heard so many horror stories about HOAs (Josh Dorkin would not approve!) Any advice?

Hi All,

I have a deal that is comprised of 4 units on 3 linked parcels of land. My debt to income ratio is too high to get bank financing so I would like to ask for seller financing. I ran the numbers with a 30 yr fixed 6% bank loan and the numbers worked (Cashflowing $250 a unit) how do I run numbers for seller financing? The owner is 84 and wants to retire. He's not going to go for 30 year and when I amortize the loan over shorter periods of time the cashflow dwindles making it not such a great deal. How do people make seller financing work?

Hi everyone,

I put out a postcard mailing a week ago and the calls are flooding in and frankly I"m a bit panicked! I only sent out 500 postcards and I've received 5 calls in the first 2 days. 10% response rate is great but here's my problem. Two of these properties I don't know how to tackle. What would you do to proceed on these?

1) Summer cottage (town turns water off in Oct and back on in April) 385 sq ft. Very few comps. Would a flipper even want to take this on? They'll have to hold it at minimum until April to sell. Looking into whether HOA allows rentals. How do I market this?

2) 4 unit compound.
Building 1 - old store front building converted into 2 units
Building 2 - 3 car garage with 1 unit above
Building 2 - small ranch house.

There are no comps in the area even close to this type. It is fully rented ($4,800 gross rents) do I just run numbers on rental to find my offer price and promote it to buy and hold investors and show cashflow?

Unfortunately my area doesn't have tract houses. Properties are very individual and really hard to comp. Any insights on how to manage this workflow?

Thanks so much,

Hi everyone,

I put out a postcard mailing a week ago and the calls are flooding in and frankly I"m a bit panicked! I only sent out 500 postcards and I've received 5 calls in the first 2 days. 10% response rate is great but here's my problem. Two of these properties I don't know how to tackle. What would you do to proceed on these?

1) Summer cottage (town turns water off in Oct and back on in April) 385 sq ft. Very few comps. Would a flipper even want to take this on? They'll have to hold it at minimum until April to sell. Looking into whether HOA allows rentals. How do I market this?

2) 4 unit compound.
Building 1 - old store front building converted into 2 units
Building 2 - 3 car garage with 1 unit above
Building 2 - small ranch house. 

There are no comps in the area even close to this type. It is fully rented ($4,800 gross rents) do I just run numbers on rental to find my offer price and promote it to buy and hold investors and show cashflow?

Unfortunately my area doesn't have tract houses. Properties are very individual and really hard to comp. Any insigts on how to manage this workflow?