Offline2 poss. 4 rentall props with current market excellant positive cashflow potential w/incredible prophet all owner finance. talked to a realter yesterday. he said the rental market here is HOT!!!! any ideas on whereto start. 2 of 4 need work allneed paint all of the work i can do myself. im soooooooooooo!!!!! excited i can hardly sit still long enough to rite this
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Hey young Grasshopper
First take a deep breath and then another. LOL!
There are many of these kind of deals out there and you will find them all the time.
We have to keep you calm so you don't get an ulser or have a nervous breakdown before you do your first deal! LOL!
Owner finance means he will look to you every month for that payment. Do some figuring and see if your budget will handle these payments should your renters not pay you. Renters are bad about not paying or skipping a payment here and there.
Then get your realtor to run comps for that area. Comps are comparatables...other houses in that area that are about the same age, size, BR, BA, acerage etc...
These comps will give you a good idea as to what those propertys will be worth once in good repair..
Then figure what it will take you to bring them up to par.
Make the owner an offer considering all of this.
He may somehow work with you on no money down. In real estate everything is negotiable.
Maybe some of these people on the board who have done owner finances can give you some advice. Elena? Rina? Matt?
You are doing great Todd. Keep up the progress and effort you are putting into your real estate. I am proud of you.
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Welcome to the DG family, glad to have you with us. There's not enough here to understand what the deal is other than it's a rental that's owner financed. Give us more details so we can give you some accurate advice.
God bless,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
Glad to hear that you may have a great deal. You may want to find out why the owner wants to owner finance these properties if he has positive cash flow from them.What is his motive for getting rid of these properties?
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
How exactly does owner financing work?
Kai
Money won't fall into your hands, you have to earn it!
In owner financing, the owner in some cases own the property outright, and for this reason acts as the banker, lender or title company. Therefore, they may have the privilege of offering to the buyer no down payment, but then the mortgage will be much larger. They are also less flexible with negotiations. Is this true?
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
First let me say CONGRATULATIONS! It's great to "hear" that much enthusiasm in your voice!
(That is one of the biggest factors that will push you forward to success)
I agree with everybody so far on finding out more information. Sounds like you might already have the numbers, but just didn't include them here. You could get some more detailed response by posting those.
As far as owner-financing, that's one of the best opportunities there is in real estate! Check out what Dean writes in BARM on page 183. You can also google "owner-financing" or "seller-financing" and read some great articles. Here are a few.
http://homebuying.about.com/od/financingadvice/qt/091007_OwnFinan.htm
http://www.mortgagefit.com/owner-financing.html
http://ezinearticles.com/?How-Does-Owner-Financing-Really-Work?&id=68645...
http://www.nuwireinvestor.com/articles/seller-financing-for-real-estate-...
I know there have been a lot of discussions and experiences in the forums, as well.
SO, Todd, hold onto that excitement, do your homework, and I wish you luck on your FIRST DEAL! Keep us posted, OK?
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249