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Hi April, Thank you for the great video. I've owned two 4-family units for ten years and am always looking to expand my knowledge (and buildings). My two bits; Your "W/D insanity" can be misleading. I use the formula; Each bedroom = 1 load/wk Each load = $4. (wash & dry) So, 1 apt @ 2 bds = 2 loads/wk x $4 = $8 x 4 weeks = $32/apt/month. ...or I can just... Add $50-75 to the rent and advertise as "free on-site laundry". -You're making more money. -You're paying the same water/gas/electric/maintenance for the service either way (pay vs rent included). -Tenants view it as a bonus vs the tenants who have to save up quarters living up the street. -The machines aren't "inop" for days while you wait for a tech to clear jams caused by a tenant trying to use dimes instead of quarters. -You don't have to show up weekly to collect the money. I fully agree with keeping rents 10-15% neighbourhood rates as you tend to get; -more applications meaning better chance of getting a good tenant. -Tenants who take care of the property as they're afraid that if they damage it, the lease would not be renewed. I subscribed so I'm going to keep listening, so keep up the great work! Matthew in Milw.
Thank you for your channel! SF is my goal this year (closing on my first SFH next week through traditional lending). Your videos have been direct, super informative, and really boost my confidence as a female in this space. This video in particular was great at breaking down what I couldn't piece together from the other channels - how to explain SF to owner, thought process behind the terms, and how to approach inherited tenants for a win-win.
Omg...5% rate! Lol! Wow you scored. I’m doing my first seller financed deal. 20% down, 7.5% rate, 30-yr amortized with 5-year balloon. However, the property is in turnkey shape. New roof, HVAC, flooring is new or resurfaced hardwood, new cabinets, painted. So all I have to do is buy a stove and dishwasher for it to be rent ready. Plus I’m closing in three weeks. Purchase price was $75K, down payment is $15K. Using a realtor (2%) because I live in CA and don’t want to fly to Arkansas. So she will be my eyes and ears there. This is how you can get around the out of state situation. Great job getting this property! Glad you had the cash the rehab ready to go.
April thank you so much for all your videos! I just watched about 10 lol they are all so helpful. I started investing about 2 months ago. I love how you break down your videos and it’s so easy to understand! Im from New Jersey I hope one day we will be able to connect!
So on this deal you put down 15k and paid for the renovations 21k. What did you spend out of pocket with title and lawyer fees? Pictures of before and after of property would be great thank you! Awesome vids.
So glad I found your channel! I invest in Brookhaven PA. I've done a lot of seller finance deals but I've always had to come up with a down payment. On average 5-7k on houses under 50k. I'm going to dig into your channel to see what tactics I can use to change that now. I recently decided to do this full time along with wholesaling so my bank options are limited when it comes to refinancing. They treat the self employed like we have the plaque!
Thank you so much I am currently pitching seller financing to an owner and watching your videos really helped me explain it better on how it could be a win win situation for both parties I will keep learning from you Thank you so much
Thanks for sharing your insights and experience, and in such great detail. You're a natural at teaching and you seem to enjoy it a lot. I've learned so much from your videos!
Perfect timing! I'm considering buying a new build four unit as a first time home buyer (owner occupied) in a major city, but I don't know if the numbers make sense. Rent is going up like crazy here! Great content!
Just viewed your video. Was thrilled that an average investor can accomplish so much. You nailed this video with your presentation and dedication. Will follow up and contact for future education. Again thx JW
What are some important questions I should ask the seller about the property during the initial discussion? Questions like: Asking price (obviously) What is the current rent roll? Do you own the property free and clear? How many bed and baths are in each unit? etc.. thanks for your help! i really enjoy your videos
Great video! What do you do when tenants dont move and accept the rent increase. How do you manage to get your renovations while tenants live there? Also do you put the tenants on a lease if they are MTM? THanks!
Thanks for this video. We are patiently waiting for our stock shares to liquidate thinking we need thousands of dollars to get started for a down payment or have in reserve for repairs. I am seeing that we may not need to wait. Please educate me if I am wrong and point me in the right direction on how to finance our first purchase. We are eager to get started, but so much info to digest and would rather not fail the first time out. Your video is fantastic!
I’m about a year out from owning my first home, which is my primary residence. If I cash out refinance and buy another property with this capital do I just continue this same process and have multiple mortgages on each property through the refinances?
I appreciate your video. Thank you! I am new. Ive been studying this for about 6 months. But have just begun door knocking and calling FSBO's and FRBO's but havent had any luck!
Like the video!!! So I notice you said you have your tenant's pay online how did you set that up? Also if they dt paynon the 1 st what is your next step since no late fees....
Hi April, as others have commented you do a excellent job of breaking down all the steps that other gurus gloss over. Also it is very practical. I am subscribed to you. What is the link to how you solved the 5 year balloon payment issue? Thank you so much!
The Brett Whissel Amortization schedule will show you the 5 year balloon and you will do a cash out refinance with a bank and the bank loan will pay the seller back their balloon: )
I use the Bret Whissel Amortization Schedule. If you google it.. his site will pop up AND .. next month I will do a you tube video on it bc SO many people have asked me to break this down further for them :)
Great video ! But in the end you said the seller is only financing for 5 yrs ? In the beginning you had calculated using a 30 yr term ? How does that work ?
Your payments are priced as if you were going to be paying the mortgage for 30 years, but in year five, there is a balloon payment, where all the remaining balance is to be paid. Most use a cash out refi to do this.
Hey April, I enjoy your channel, very informative!... I do have a question, I'm getting ready to purchase a 4 unit in Cleveland. I was wondering your opinion on section 8. I know they are not the best quality tenants, but it was previously rented to section 8 for 3320.00 a month, would it be worth it for the guaranteed income?...this will be my first rental
Hello, great content. How and where did you get the insurance for $980 a year for a four-plex? I am buying one and the quotes came to $2,500, $3,400 and $3,700. $140,000 coverage, my credit is over 800 and I have other properties also. I also think that potential landlords need to add vacancy cost into consideration, at least one month per year per apartment, sometimes tenants leave for no reason and it takes on average a month to do basic repairs and find a new tenant. Thank you very much.
keep looking, those insurance quotes are INSANE! If you email me: april@lazygirlrei.com I can send you my insurance guys info. I don't know if he covers your area but he may be able to refer you to someone else.
Wowww more clear impossible, only one question, how does the paper work and all the legal procedures get certified? Do you hire a real estate attorney or how does it work? Title company, etc etc etc?
@@aprilcrossley Did you hire a lawyer and a title company - as in two separate professionals or was it one company that had both available? I think this is the part that is the most intimidating. The paperwork process. Thanks!
I know you don't need money to wholesale, but if you have access to private money or hard money. How can you use it to do wholesale deals. This is a simple question I know and really doesn't need an explanation. However, private lenders want repayment to start in either 2 or 6 months. So how do you use private money in the time frame?
Anyone have any idea how this would play out and be structured if there was no rehab involved? I have a very similar deal brewing right now, and I'm trying to figure out the best owner financing scenario. The building and the units are all in very good condition.
A lot of great information in this but there are plenty of "unlicensed contractors" that are excellent at their craft. I now live in Ohio and I'm pretty sure this state doesn't even have them. Just my opinion. I've never had an issue but that's not to say it's not an issue where someone else lives.
April, you said , ' the deed transfer', before the 5 year term ,where did you have the documents processed , was it your attorney ? Also , was it recorded in the court ?
This video is timely as I am looking to present the seller financing offer. The seller situation is similar to yours but the place does not have any long term tenants and the asking price is much higher. Your video gave me steps to take. We will see how it goes. Thank you!
No but Lord knows Im trying. I have found a few places for sale by owner, and tried to bring up seller financing and have been immediately shot down! I know that they dont know enough about it, and Im not confident enough to try and talk them into it by explaining it better. Could you please do a video on talking with a seller who is against it, not one who is atleast open to hearing about it. Please? That would be so helpful!
i dont mean to be so off topic but does someone know of a tool to log back into an Instagram account?? I was dumb forgot my account password. I appreciate any help you can offer me!
Sometimes I feel like folks that I ask do not understand some of the benefits THEY can get from seller financing - Do you have a write up we can use for seller so they understand why they should consider it? Gracias
How does repair cost work if you turn around and seller finance this to someone else? Do you have to fix it up at your own expense or does the new buyer get some kind of credit?
460 a month cashflow .. not very good return on a fourplex .. is a 5 year balloon with 5% interest and 15 k down . Eh doesn’t sound like a solid deal to me
Sorry in advice for the naive question? How are you able to obtain title and deed if you still need to pay off the seller? Do you use a vender pay back option with promissory note? In order to cash out refi don't you need the title and deed?
So an older gentleman agreed to a 30 year term? What's the clause in the loan in the event of his passing? @18:18 So is it 5 years or 30 years? Yeah, I don't think anyone in their old age with a sane head would agree to 30... @13:20 Images would be really helpful here.
30 yrs is the amortization. they are paid out in one lump sum balloon payment which is usually 1,3, 5, or 7 years in.. depending on what is agreed upon. they are not holding the note for 30 years.
5:03 You forgot about the barber, the unemployed plumber, the father in law, the grocery bagger, and the 3 regulars that sit at the bar each day. They are all Real Estate experts that will be consulted as well... It's mind numbing
So your gambling that after you sunk all this money and effort into this building that you'll be able to buy it on 5 years? Meanwhile the seller is making more money than you doing absolutely nothing? What am I missing?
You are echoing so badly please put some furniture in that room or something on the floor like an area rug it's so distracting it's hard to understand you
Thanks for watching one of my most popular videos on UA-cam! ☺Come join my FREE Facebook Group - RV REI and let's #GrowWealth and #ChangeLives together facebook.com/groups/1295813490499916
Hi April,
Thank you for the great video. I've owned two 4-family units for ten years and am always looking to expand my knowledge (and buildings).
My two bits;
Your "W/D insanity" can be misleading. I use the formula;
Each bedroom = 1 load/wk
Each load = $4. (wash & dry)
So, 1 apt @ 2 bds = 2 loads/wk x $4 = $8 x 4 weeks = $32/apt/month.
...or I can just...
Add $50-75 to the rent and advertise as "free on-site laundry".
-You're making more money.
-You're paying the same water/gas/electric/maintenance for the service either way (pay vs rent included).
-Tenants view it as a bonus vs the tenants who have to save up quarters living up the street.
-The machines aren't "inop" for days while you wait for a tech to clear jams caused by a tenant trying to use dimes instead of quarters.
-You don't have to show up weekly to collect the money.
I fully agree with keeping rents 10-15% neighbourhood rates as you tend to get;
-more applications meaning better chance of getting a good tenant.
-Tenants who take care of the property as they're afraid that if they damage it, the lease would not be renewed.
I subscribed so I'm going to keep listening, so keep up the great work!
Matthew in Milw.
Your right, banks are a big pain in the a$$ for the self employed.
Thank you for your channel! SF is my goal this year (closing on my first SFH next week through traditional lending). Your videos have been direct, super informative, and really boost my confidence as a female in this space. This video in particular was great at breaking down what I couldn't piece together from the other channels - how to explain SF to owner, thought process behind the terms, and how to approach inherited tenants for a win-win.
awesome!
Omg...5% rate! Lol! Wow you scored. I’m doing my first seller financed deal. 20% down, 7.5% rate, 30-yr amortized with 5-year balloon. However, the property is in turnkey shape. New roof, HVAC, flooring is new or resurfaced hardwood, new cabinets, painted. So all I have to do is buy a stove and dishwasher for it to be rent ready. Plus I’m closing in three weeks. Purchase price was $75K, down payment is $15K. Using a realtor (2%) because I live in CA and don’t want to fly to Arkansas. So she will be my eyes and ears there. This is how you can get around the out of state situation. Great job getting this property! Glad you had the cash the rehab ready to go.
Thanks for the clear and concice videos, no intros or loud background music.
The psychology she provides from 2:45 to 4:15 is some of the best stuff I've heard in the past 100 hrs of watching this real estate content.
I agree 100% and Im following the big guys! They havent put out anything like this!!
April thank you so much for all your videos! I just watched about 10 lol they are all so helpful. I started investing about 2 months ago. I love how you break down your videos and it’s so easy to understand! Im from New Jersey I hope one day we will be able to connect!
awesome!!! You are quite welcome!!!
This was super helpful! I would love an update on this unit
So on this deal you put down 15k and paid for the renovations 21k. What did you spend out of pocket with title and lawyer fees? Pictures of before and after of property would be great thank you! Awesome vids.
So glad I found your channel! I invest in Brookhaven PA. I've done a lot of seller finance deals but I've always had to come up with a down payment. On average 5-7k on houses under 50k. I'm going to dig into your channel to see what tactics I can use to change that now. I recently decided to do this full time along with wholesaling so my bank options are limited when it comes to refinancing. They treat the self employed like we have the plaque!
How u making out now with that
Thank you so much
I am currently pitching seller financing to an owner and watching your videos really helped me explain it better on how it could be a win win situation for both parties
I will keep learning from you
Thank you so much
Did you get the deal?
@Enter Tainment No, i did not, but I learned a ton just from having the conversation with the seller
April, You were born to do this! Thank you for all the tips and tricks of the trade. I'll be a loyal subscriber for life.
Thanks for sharing your insights and experience, and in such great detail. You're a natural at teaching and you seem to enjoy it a lot. I've learned so much from your videos!
😍 thanks for watching!
Thank you so much for this video... I have been bingeing on your videos all morning. (P.S. I love that sweater)
Perfect timing! I'm considering buying a new build four unit as a first time home buyer (owner occupied) in a major city, but I don't know if the numbers make sense. Rent is going up like crazy here! Great content!
Awesome! 👏Keep me posted on how you make out. If you ever need help with deals email me at April@lazygirlrei.com.
Just viewed your video. Was thrilled that an average investor can accomplish so much. You nailed this video with your presentation and dedication. Will follow up and contact for future education. Again thx JW
What are some important questions I should ask the seller about the property during the initial discussion?
Questions like:
Asking price (obviously)
What is the current rent roll?
Do you own the property free and clear?
How many bed and baths are in each unit?
etc..
thanks for your help! i really enjoy your videos
Great video! What do you do when tenants dont move and accept the rent increase. How do you manage to get your renovations while tenants live there? Also do you put the tenants on a lease if they are MTM? THanks!
I like this gal ! She seems real and straight forward! Not a salesman
she's good right? ;)
Thanks for this video. We are patiently waiting for our stock shares to liquidate thinking we need thousands of dollars to get started for a down payment or have in reserve for repairs. I am seeing that we may not need to wait. Please educate me if I am wrong and point me in the right direction on how to finance our first purchase. We are eager to get started, but so much info to digest and would rather not fail the first time out. Your video is fantastic!
Thank you. You got this!
Great video! I’m looking forward to using seller finance
I’m about a year out from owning my first home, which is my primary residence. If I cash out refinance and buy another property with this capital do I just continue this same process and have multiple mortgages on each property through the refinances?
As always, great content and right in line with what I asked a few videos ago! Thanks for these!
Your welcome! Thanks for watching!
April, you do an awesome job breaking down the #'s!
Thanks! 💪
Keep em comin! Subbed! I'm into wholesaling right now but I want to enter this world
Thanks for the excellent work, April!
I just bought a sfh with owner financing. I got 7% for 10yrs.
💪💪💪 that’s amazing! Keep me posted on the progress!
how much did you have to put down ?
So many golden nuggets in this video, thank you April!
I appreciate your video. Thank you!
I am new. Ive been studying this for about 6 months. But have just begun door knocking and calling FSBO's and FRBO's but havent had any luck!
Thank you for the tips looking forward to my first deal. Lots of value in this video
Like the video!!! So I notice you said you have your tenant's pay online how did you set that up? Also if they dt paynon the 1 st what is your next step since no late fees....
So much value in this one! Thank you
Thank you! 🙏
Hi April, as others have commented you do a excellent job of breaking down all the steps that other gurus gloss over. Also it is very practical. I am subscribed to you. What is the link to how you solved the 5 year balloon payment issue? Thank you so much!
The Brett Whissel Amortization schedule will show you the 5 year balloon and you will do a cash out refinance with a bank and the bank loan will pay the seller back their balloon: )
Thank you for sharing your knowledge of real estate investing to us❤🤗👍 learned a lot!
Wow! What a great break down. Very organized. What would you say your neighborhood and tenants are on a A to F scale?
How did you get to the $671.03 number. Thank you.
I’m looking to start out with seller finance and continue to use it as my first options. Some great deals in Texas.
Hi. Great video. what is the name if the app that helps you with calculations?
I use the Bret Whissel Amortization Schedule. If you google it.. his site will pop up AND .. next month I will do a you tube video on it bc SO many people have asked me to break this down further for them :)
@@aprilcrossley awesome, thank you for sharing that and i look forward to seeing that video!
Great video ! But in the end you said the seller is only financing for 5 yrs ? In the beginning you had calculated using a 30 yr term ? How does that work ?
Great question and I’m glad you asked. I’m actually going to be releasing another video where I show you my exit strategy for that exact reason.
April Crossley
Can you link the video please
Your payments are priced as if you were going to be paying the mortgage for 30 years, but in year five, there is a balloon payment, where all the remaining balance is to be paid. Most use a cash out refi to do this.
Your net monthly cash flow doesn't sound like much, but it is 15% cash on cash ROI. Not shabby at all.
Hey April, I enjoy your channel, very informative!... I do have a question, I'm getting ready to purchase a 4 unit in Cleveland. I was wondering your opinion on section 8. I know they are not the best quality tenants, but it was previously rented to section 8 for 3320.00 a month, would it be worth it for the guaranteed income?...this will be my first rental
Hello, great content. How and where did you get the insurance for $980 a year for a four-plex? I am buying one and the quotes came to $2,500, $3,400 and $3,700. $140,000 coverage, my credit is over 800 and I have other properties also. I also think that potential landlords need to add vacancy cost into consideration, at least one month per year per apartment, sometimes tenants leave for no reason and it takes on average a month to do basic repairs and find a new tenant. Thank you very much.
keep looking, those insurance quotes are INSANE! If you email me: april@lazygirlrei.com I can send you my insurance guys info. I don't know if he covers your area but he may be able to refer you to someone else.
April, great video !
thanks!
I'm not the Matt that asked, but I am A Matt, soo.... Hi to you too!
Just a question can the down payment be negotiationed with terms as well?
Amazing content!
Thanks Matt! This seller fi video was for YOU! I have a few others coming out so hope they help ya :)
Wowww more clear impossible, only one question, how does the paper work and all the legal procedures get certified? Do you hire a real estate attorney or how does it work? Title company, etc etc etc?
all done with a title company just like a regular transaction. They will record the mortgage, etc. The attorney draws up all the paperwork :)
@@aprilcrossley Did you hire a lawyer and a title company - as in two separate professionals or was it one company that had both available? I think this is the part that is the most intimidating. The paperwork process. Thanks!
I know you don't need money to wholesale, but if you have access to private money or hard money. How can you use it to do wholesale deals. This is a simple question I know and really doesn't need an explanation. However, private lenders want repayment to start in either 2 or 6 months. So how do you use private money in the time frame?
Do you normally pay for all the closing cost? What if there’s an agent involved? Do you need to pay attention or negotiate this part?
Can you teach me. I'm about to retire from the army and really need help learning how to do this
Anyone have any idea how this would play out and be structured if there was no rehab involved? I have a very similar deal brewing right now, and I'm trying to figure out the best owner financing scenario. The building and the units are all in very good condition.
A lot of great information in this but there are plenty of "unlicensed contractors" that are excellent at their craft. I now live in Ohio and I'm pretty sure this state doesn't even have them. Just my opinion. I've never had an issue but that's not to say it's not an issue where someone else lives.
How can I get some listings for owner finance?
You are awesome!!!
THANKS!
Where can I find those kind of deals.
April, you said , ' the deed transfer', before the 5 year term ,where did you have the documents processed , was it your attorney ? Also
, was it recorded in the court ?
Excellent!
Thank you 🙏
What about property management? Shouldn't you account for that too?
This video is timely as I am looking to present the seller financing offer. The seller situation is similar to yours but the place does not have any long term tenants and the asking price is much higher. Your video gave me steps to take. We will see how it goes. Thank you!
you rock!! Thank you :)
Have you done any seller financed deals yet? Let me know down in the comments!
No but Lord knows Im trying.
I have found a few places for sale by owner, and tried to bring up seller financing and have been immediately shot down!
I know that they dont know enough about it, and Im not confident enough to try and talk them into it by explaining it better.
Could you please do a video on talking with a seller who is against it, not one who is atleast open to hearing about it.
Please? That would be so helpful!
Do you have a twin sister just like you? lol
Hi how we can get class or course pleas
i dont mean to be so off topic but does someone know of a tool to log back into an Instagram account??
I was dumb forgot my account password. I appreciate any help you can offer me!
@Watson Elijah Instablaster :)
Sometimes I feel like folks that I ask do not understand some of the benefits THEY can get from seller financing - Do you have a write up we can use for seller so they understand why they should consider it? Gracias
How does repair cost work if you turn around and seller finance this to someone else? Do you have to fix it up at your own expense or does the new buyer get some kind of credit?
Wait did you say no grace period on rents? Is that even legal? Due on the first, late by the x day is pretty standard in all rental contracts, no?
Are you available for coaching?
yes! april@lazygirlrei.com shoot me a message
But can you refinance with a bank? while doing the seller financing?
$15K down + $30K in rehab = $45K. $32,100/$45K = .71 x 100 = 71% Cash on Cash return! That’s excellent.
Hi. What's the .71?
What did your letter say when you wrote to him?
I learned a great deal! Thank u
We got you covered! There’s more where that came from.
African Queen, how is the market there is Africa? Are you getting any owner financing there?
Did you use your own money for rehab cost? Partner? Hard money?
Do you do coaching?
Hey April
awesome
Your charts are so funny. But good 👍
Seller is willing to seller finance 50k on his property that he owns outright. Can I use that to complete my downpayment?
460 a month cashflow .. not very good return on a fourplex .. is a 5 year balloon with 5% interest and 15 k down . Eh doesn’t sound like a solid deal to me
not if your eye isn't on the long term and rents being under market.
I expect 200 a door . I love seller financing but those terms aren’t very exciting especially the balloon . That alone would kill the deal for me
Sorry in advice for the naive question? How are you able to obtain title and deed if you still need to pay off the seller? Do you use a vender pay back option with promissory note? In order to cash out refi don't you need the title and deed?
seller becomes the bank. Deed is transferred at settlement and seller gets a note and mortgage just like a bank would.
Don't open the window... even if it gets very hot.. you must be a very strict landlord... ;)
awesome!
Thank you!
Great points. I'm about to start seller financing and going to visit property tomorrow.
So an older gentleman agreed to a 30 year term? What's the clause in the loan in the event of his passing?
@18:18 So is it 5 years or 30 years? Yeah, I don't think anyone in their old age with a sane head would agree to 30...
@13:20 Images would be really helpful here.
30 yrs is the amortization. they are paid out in one lump sum balloon payment which is usually 1,3, 5, or 7 years in.. depending on what is agreed upon. they are not holding the note for 30 years.
April Crossley Thank you for the clarification!!
5:03 You forgot about the barber, the unemployed plumber, the father in law, the grocery bagger, and the 3 regulars that sit at the bar each day. They are all Real Estate experts that will be consulted as well... It's mind numbing
Sounds too good to be true $20,000 that's it? I have a one-bedroom condo I pay more than that in 2005. Something's not adding up. renovation
It depends on where the property is.
If you have to pay the home in 5 years. Aren’t your monthly payments like 2k?
no, it is amortized over 30 years
5 year is the balloon
how did you manage to convince them not to take the $140k up front and take $700/month instead? because he will be in a higher tax bracket? Thanks!
She does tell you in the video.
It's very difficult with seller financing'
Where's part two of this video
If I were the seller, I would INSIST on finance it for the entire 30 years period. He would make an additional $116,569.73 over the 30 year .
Math please and explanation. I'm new at this. Thank you.
Hi
I would to talk to you, I wanna buy a multi, but all I have is money in my self directed, I can borrow $50,000
Can you be my realestate mom lol
LOL! what does this job description entail? lol!
So your gambling that after you sunk all this money and effort into this building that you'll be able to buy it on 5 years? Meanwhile the seller is making more money than you doing absolutely nothing? What am I missing?
ARE YOU MARRIED, I AM DEEPLY IN LOVE WITH YOU BABE.
Whole ass ring on her finger dawg.
You are echoing so badly please put some furniture in that room or something on the floor like an area rug it's so distracting it's hard to understand you