All Forum Posts by: TJ Addison

You can get stock forms on line but there are specific rules for each state. A real estate attorney can get the forms or maybe another investor buddy might have them

A cheap way to do it is a sign from Home Depot. Also post it to Craigslist and Zillow. There a plenty of other ways to do it but those are virtually free.

Jon Holdman thanks for the information. Looks like I need to find out how my lender looks at this.

Hello all,

I had a question about how private money works...  If I have around 75k to invest but need about another 25-50k to put down a down payment on a decent multi-family I was thinking that private money would be the way to go but I had a few questions...

Is private money lending a short term deal like hard money or can you extend terms for say 5 years?

If I received 50k from a private source how do banks look at that when they require a 25% down payment?  I would think that they look at that as an additional loan so I wouldn't have the 25% down that they would require.

Based on the question above about banks... if getting private money do you normally fund the entire balance of the property with them since in my situation I wouldn't have the full 25% down payment?

Thanks for any help you may provide.

TJ

Congrats on taking the plunge. Don't get too excited and jump into something that won't get the returns you need. Take your time. Lincoln is a good market. Good luck!

@Josh C., @Account Closed thanks for your input.  I'm glad to hear that owner financing won't handcuff me as much as I thought it might.  I guess communication with the other party is probably key to this as well. 

If you were to purchase a property from someone who wanted to do owner financing it is safe to say that they would like to be the bank on the transaction and bring in a monthly income with a nice yield. 

If you are on the other end of an owner finance deal, is it unethical or looked down on to refinance out of that after say a couple of years?  I guess my assumption is the person providing the owner financing is most likely looking for monthly income for a long period of time so that they can collect all of that interest.  They don't probably need the lump sum amount either.

Is this situation usually written into an owner finance contract i.e. you can't pay off the loan for "x" number of years?

I'm curious to here the response on this because I am looking to try and find a property that I might be able to owner finance but I'm not sure if I want to pay a higher rate to that person long term if I can get something lower at a bank.

Thanks

TJ

Awesome! Season ticket holder here.  I travel about two hours to the games each week.  I remember you well.  You were on some good teams.  The Auburn game on Thursday was awesome.  It just didn't end the right way!

@travis tannahill im from Lincoln ne but am a wildcat through and through. My aunt and uncle live in Hillsboro. Nice town and Tabor should help you keep your rentals full... you play football for the greatest of all time?

Derrick McCoy the rates are likely to increase as you say. If your more comfortable with paying that ballon down that's what you should do. I would do as others suggest and use the leverage to my advantage. I have a bit more appetite for risk though. In the end do what your comfortable with.