All Forum Posts by: Shahriar Khan

@Sam Craven agree 5K down. 

We all need to understand couple of things 

1) Not every buyer's equation is same .. Some of us are there to make living out of investment thus need higher payout aka lower price and some of are there to protect out investment aka 1031 or need just to beat inflation etc and they can happily pay much higher price.

2) There are a lot want to be /looking to be/see if my bid holds type that wholesellers may have to deal with and 5K earnest money typically brings confidence on buyer 

3) I am betting that all earnest money are refundable is seller fails to provide clear title so in a a sense its refundable if seller fails to come to closing table. 

4) No one is pushing anyone to do any deal. Its an open market . Instead of saying who is charging how much ..we should focus on does the deal work out for me/you or not. If it does GREAT  and if doesnt FANTASTIC ... 

Happy investing .... 

@Marlon Long it also could be that you asking price is the only one where investors could get a sensible return compare to most of the folks who thinks 3%-5% is acceptable return and jack up the price as such. 

@Lukas Vanagaitis structure will depend on your end goal 

1) Sell all the way and exit 

- Sell now . Only way it will be possible by lower the price . 

- Price will depend on cost plus profit , or cost only ..(assuming you took loan to rehab there is a holding cost ). Given the soft market now and assuming it will pick up on Q2 .. selling price will depend on how long can we hold it . 

2) Sell and exit after 20-30 yrs 

- Seller financing note 

- Foreclosure risk 

Hope this helps. 

@Satya N. did you already move to KC? I have been travelling there frequently and started to look into MF there as well. 

@Terra Smith i would hang out at least 1/2 time a weeks to local events (agreeing with @Dave Chapa ). If you can manage to attend continuously 2-3 months ... it will open doors for you beyond you can image . 

Hint: You might want to prepare a deal analysis as if you are  to buy that (landlord perspective) and take that sheet of paper with you. If you meet anyone as buyer then go over that with you to identify all cost allocations and if you meet anyone as seller then go over that with them as well to identify a good buying price. 

Last but not the least, make sure to continue your college education and/or professional day job. Continuous cash flow will win anytime over sexy infrequent check.

I thought Freddie Mac SFR pilot program would take care of this problem.

https://arbor.com/freddie-mac/sfr/

https://a10capital.com/products/freddie-mac-sfr-pilot-program

https://www.corevestfinance.com/freddie-mac-loan/

@Rivy S. try this folks

https://www.shoot2sell.net/dfw/

@Rivy S. agreeing with @Rae Copitka. I would spend $200/$300 to take couple of professional picture  to match interior and exterior . Yard looks fine to me and professional pictures should take care of that. 

Also, i would add 2 more images for the listing and post them as 2nd and 3rd image after the main/first image (professional pic)  

1) Targeting to buyers to provide an idea of cost and benefits of home ownership. Create a small table with Payments and Terms (calculating PIT) with big /bold header something in the line of "No Credit/Bad Credit - No Problem " and post that as picture on the listing. 

2) Targeting to Realtors : asking to bring buyer who didnt get bank loan approved before. 

In addition, i would /have the realtor call all realtors (listing aka seller agents) who sold houses within 3 mile radius within last 8-12 months and let them know about owner finance. They would be a great place to know who could not buyer their listings due to financing issues.

At the end, you need to package your product/house both to realtors and end buyers by bringing the WOW factor by great pictures and making decision making easy by sharing payment and terms . Also, given the narrow demographics of owner finance audience that you are looking for, expect this sale to have a slower and longer process compare to typical bank loan sale and if anything happens faster then it would be a bonus. This is also why, proactive cold calling to listing agents in that area should help. 

Just my 2 cents and wish you the best. 

@Casey York that's a very loaded questions assuming you are thinking about only legal risks. One can spend hours talking about risks.

At a high level you can remove all risks by doing 2 things 

1) Adding disclaimer when you sell 

AND/OR 

2) Doing double close aka you buy first and then you sell. 

Why is he going to refinance to take cash out to build something on it ? Have him take a construction loan which would be similar and will have flexible terms. Also commercial loan is very much negotiable ...