All Forum Posts by: Joe Butcher

@Shane Woods

The house is not in need of any repairs....roof is new, gutters are new, foundation is repaired. It is however, VERY dated looking.

If I had enough $$ for the down payment I would borrow hard money and flip it myself, that is, if they accepted my cash offer. This would be a very easy flip for about 20K. BUT...I dont think they will go for the cash offer.

I guess the scenario that is more likely is to owner finance, then lease it??

@Bill Gulley thanks for joining the discussion. I have read alot of your posts.

Don't know if I was clear on some of the details but the current owners DO NOT live there. The property is vacant. It is also owned free and clear.

All the info I have found on the SAFE act seems confusing....maybe it's just me.

@Shane Woods ahh, was just looking at your profile and was hoping you would chime in here.

So if the seller finance is accepted, my options after that would be what?

To lease it as is? Rehab and lease? Re-sell it to another buyer who finances it from me? I think thats the part I am unclear on....the exit strategy.

I am getting abetter grip on how to structure the deal, but not too sure I understand what makes an offer attractive vs not attractive.

Thanks!

Joe

@Wayne Brooks

I am looking at the government website right now but theres quite a bit to look through.....do you know what those restrictions would be, specifically?

@Wayne Brooks

Thanks for the reply. Do you know what issues in particular?

I was under the impression that SAFE only applies if RE is your main source of income, or if you have several transactions with seller financing.

Have you run into any issues with a seller financing deal?

Thank you.

Would very much like to hear from any experienced wholesalers on this.

Thanks again!

@Zach Rosen

90K would be getting close to being a thin deal for me to assign contract to another investor.

The differnece between the 80K and 135K is cash now vs money over time.

If there are any experienced wholesalers out there who have experience with seller financing or lease options, I would love to hear your thoughts!'

Thanks again!

@Zach Rosen

80K is the CASH (wholesale) offer.

135K is the seller finance offer.

@Account Closed

I am not dropping 20K in repair. Maybe I wasn't clear enough about me making TWO offers to the seller. Let me explain.

The first offer I want to make them is a CASH offer.

I will give them 80K CASH. This is based on the formula:

70% of ARV minus rehab minus my fee.

Based on their motivation I do not think they will go for it, but they might

I want to offer another option, as is common in wholesale situations.

That would be for the seller to finance it to me, they buyer.

Usually in this scenario, the buyer can give the seller closer to what they want.

They had it listed at 145K but told me they would've been happy with 135K.

Is that a little clearer? If not just let me know what info I am missing.

Thanks!