Seller finance

What is the value of the house? The owner finance is a great deal, especialy if there is I look at the math on renting the house out and understanding we are going into the cold season, if you only rent the house out 50% of the month, say 15 days and giving the association half of that $300 per day you bring in $2,250.00. That leaves you $450.00 to make up for your mortgage payment. I am sure the house looks beautiful, but for me to start out and already dipping into my pockets to make the monthly payment, I would reconsider or try to negotiate the price down.....Jan

What is the value of the house? The owner finance is a great deal, especialy if there is no downpayment. When I look at the math on renting the house out and understanding we are going into the cold season, if you only rent the house out 50% of the month, say 15 days and giving the association half of that $300 per day you bring in $2,250.00. That leaves you $450.00 to make up for your mortgage payment. I am sure the house looks beautiful, but for me to start out and already dipping into my pockets to make the monthly payment, I would reconsider or try to negotiate the price down.....Jan

Jan,

The builder says that the house is worth $425,000. It is a brand new house on the lake of ozarks in missouri. My concern is that the payments will be too high for me to pay monthly. Also it is 2 hours away from where I live and I woulld need to find an investor to buy and assign to him/her. I am thinking I could make about $30k on this deal maybe.

I was considering offering $340,000 with closing in 90 days to give me some time to find a buyer, but what happens if I can find anyone especially going into the winter months?? It may just be too risky..

Does Dean offer any insight on these situations with an exit strategy?

I also have a 4 plex that is brand new and fully rented but I am only getting around a profit of $100.00 each month, so I was considering offering a seller finance with a nonrefundable $20k downpayment.

It would be great to have someone walk us through these deals if it suppose to be so easy as Deans says.

If you are cash flowing $100 a month, that is great. Any positive cash flow is good on rental properties that you are going to hold long term.
In response to the new house on the lake, I would not take the owner's word on the comps of the house. I would do your own research on what other houses have sold in the area over the last six months. Also, it sounds like a 50% cut for the property mgt firm is steep. I know this is a "per night" fee but it still sounds pretty steep.
Just some thoughts to keep in mind
Lake of the Ozarks is such a beautiful place. I hope it works out in the end for you.

Jason
As far as management of the property...do it yourself and and keep all that money.
Then you could do one assignment per month to make that $2700 monthly payment incase you don't have it rented 12 months out of the year.
Assignments are great for keeping the cash flow going for these other larger projects. In my opinion.
Let us know how it goes and good luck.
Sissy

If it was easy, everybody would be doing it, and we would be living in a land of only the rich. It is people like us that grind it out everyday and never give up. Heck, I have put offers in on 4 deals only to get blown out of the water. But I learn from every deal what to do and what NOT to do. So many people buy this course expecting to become rich on 1 deal, and it does happen, but most of them get discouraged and bail out and go on to some other get rich quick schemes. Listen to some of Dean's audios and he will tell you up front, that it won't happen in just 1 day, but if you keep plugging, it will all happen for you. I am in this to the end. Just never, ever give up....Jan

Thanks for the encouragement. Yes, it will take some time and creativiy. I definately plan to stick with it. I got my site up and I have the 1-800 number.
I think it much easier to approach the FSBO ads than the properties that have realtors listed.

Get involved with a REI group in your area. That is what I did. It adds buyers to your list, and they have a wealth of knowledge. We meet once a month, but there is a lot of good info to take in and possible partners for you. Yeah, go with FSBO's and stay away from realtor's unless you can get one to think the way you do. I just sent an email to a realtor who deals with buyers only, no sellers. This should be interesting. I will let you know how it works out. Godd luck and stay positive my friend...Jan

Jan,

I just noticed about 8 FSBO signs when I drove throughout the area and was thinking of getting the names of the owners and sending out a letter to each one. I still need to get that buyers list to make thses deals happen. I need to find some REI clubs that meet in the evening that I can join. Yeah, I think having a partner definately helps.

Jason

Get a mentor too if you can. That will help the most. If you can't get a partner with a lot of experience.

I am sure this varies..but how much higher rate should one expect to pay when the seller agrees to finance it. (I am in the process of negotiating a deal--where there is a realtor involved and she mentioned 6%.. I was floored..I would have expected atleast 7 or 8% but I did mention a $10,000 deposit on the deal which has an asking price of $99,900). I really only want to pay 90K for the house as it needs a lot of updating and similar foreclosures are going for 70-90K but there is no way I can get a loan to buy a foreclosure from the bank so I am pursuing seller financing of normal listings. I feel I might be asking for a little too much if she does in fact decide to it and at 6%..how could I ask for a reduced price too? Any thoughts?

You mentioned that simular sales are going for $70K-$90K. Show the seller these figures when you ask for a lower price.

Al

Wow, you are putting alot of money down(10k) on this deal. What do you plan to do with the property once you get it?

Well, she needs some money and in order to finance it, she wants a decent down payment..which I guess I understand as I would too. It's not a done deal yet..perhaps I should look for someone more desperate. It just doesn't seem like seller financing would be easy to find and at 6% to boot?

I've done the traditional buy/fix up and rent until now but maybe I should try assigning before I spend my money..but I doubt I could assign this as she likes me, trusts me and my experience and I have a really high credit score..she wouldn't finance just anyone..

I planned to update it some..rent it until I can re-sell it.