April Crossley, Valuable video, thank you! Do you have this available in slideshow formate verses a video where you’re popping in and out of the data? How do you structure your agreements, do you involve attorneys, how does title transfer, do you have legal or equitable title, is this sale or a mortgage registered with the county.... I could ask and ask... I need a mentor and private lender fast.
So when doing this deal structure and rehab is needed, how would you go about funding the rehab? If using private lender money, wouldn't you have to get your lender to agree to having his/her money tied up for an extended period of time until you could do the refi? Also, how would you be making payments to your lender while the property is being rehabbed (since it is not cashflowing during rehab?)
@April Crossley Ok, I "think" I got it! While the Seller is asking for $150k, in your first offer example, if Seller finances, they'll end up getting CLOSE to the $150k, as follows: Seller to finance (offer the Seller price): $120k $10k down Finance: $110k at 5% for 30 years (amortized) = $590.50 monthly x 60 months = $35430 Balloon Payment: $101,011.80 (After 5 years refi, payoff seller, get new loan from bank at 75% FMV). Total to Seller = $146,441.80 (close to $150k they originally wanted). Is this *right*? All the other numbers on your piece of paper (i.e. expenses, cash flow, interest) got me a bit confused. (insert Homer Simpson... doh!) :)
Thank you for the great information April. Quick question regarding the interest rate for no money down. Can you give further insight into the lower interest rate when no money down vs the interest rate for 5k down? My assumption is due to the larger financing number using a lower interest rate saves you money. From a lender standpoint, I would assume a loan with a lack of down payment is a higher risk loan so how do you negotiate a lower interest rate for higher risk loan with lenders who would push back against that plan?
Hi April - I am running a VTB scenario for a deal... I have a question for you at your video reference point 15:12 - you mention the seller nets $146,441.80 as a result of $120k + $26.4k Can you please double check this? According to my calculation they would net $136,441.80 ($8988.2 + 26441.8 + 101,011.8) It would make sense since you are paying down principle monthly so TMV plays a role here as you're paying down portion of principle prior to 5 years?
Excellent vid April~!! I'm just now starting out with FSBO and looking to do a lot of owner financing. I'm also looking to do more no money down transactions as I am starting out with little to no out of pocket cash. This helps a lot.
From my understanding yes, most mortgage companies have a clause in their agreement with the owner that they cannot do this type of deal. A way to avoid this is by having the owner hold the note to the property and do a rent to own deal. In a seller finance YOU own the title of the property. In a rent to own deal the SELLER still owns the note you're just paying their mortgage. - hope that helps
Hi April. Thank you for all the education you offer with your down to earth explanations. I am studying the materials you post and taking action. I must say that I took your excellent training class a few years ago, but due to excuses, excuses, I did not execute the plan at that time. Please, let me ask you a few questions that I have after watching this great video on structuring seller financing. a. When asking for seller financing, do you cover the seller closing cost expenses? I think that a 5 or 10K down payment may not good enough to help convince the seller to become the bank if he will have to pay his/ her part of customary taxes, etc. b. On the same topic of seller expenses, if the property is on the MLS, would you add the cost of the agents commision (6%) to the amount of down payment agreed or how else would you suggest to manage this? (note 1: assuming that the cash on cash still looks attractive) (note 2: I know you prefer Of Market deals; however, you must be running an impressive marketing enterprise that I don't have (yet?)) Again thank you for all you do. You really lead by example
April , can you recommend banks that are willing to go past 65% cash out on a NOO multi unit ? Credit is 765 FICO. Property held in LLC. Banks seem pretty vanilla in South Jersey. Love your content 👍🏻. Thank you for providing so much value. P.S. Help me out and I’ll send you new glasses 🤓!
If I get one of these seller financing homes and I do a 10 year term would i be able to just pay it off in full within a years time ( or year and a half )and avoid the extra interest ? I personally have the option of saving for a year to pay for a property in cash or just doing a seller financing now and just pay them back by next year ! I have a “ short credit history “which prevents me from getting any bank loans which is a pain so I was thinking I could do what I explained instead
I am 23 years old, not much money, average credit, not good. But wanting to use seller financing so I can move out of the parents house. How should I go about talking/wording the deal to the seller when I get a hold of them
What else would you like to see or learn about seller financing? Leave them in the comments below!
Could you list all the benefits for the seller to sell this way?
How to create a rental agreement?
@@TalkwithDennis23 yes! And also with the pet option listed.
Like breeds (for insurance purposes) costs for deposit and per month, etc.
Please!
April Crossley,
Valuable video, thank you!
Do you have this available in slideshow formate verses a video where you’re popping in and out of the data?
How do you structure your agreements, do you involve attorneys, how does title transfer, do you have legal or equitable title, is this sale or a mortgage registered with the county.... I could ask and ask... I need a mentor and private lender fast.
Can you do a seller financing video for a family home instead of a rental home? Benefits for the owner and sellers?
I know this is a older video, but I did want to say thank you. I just agreed with an owner who is lending 90% at 5.75% on a six unit.
I’d love to see how you calculate your expenses
Amazing video , as usual !
👍👍👍
So when doing this deal structure and rehab is needed, how would you go about funding the rehab? If using private lender money, wouldn't you have to get your lender to agree to having his/her money tied up for an extended period of time until you could do the refi? Also, how would you be making payments to your lender while the property is being rehabbed (since it is not cashflowing during rehab?)
Awesome as usual 👍👍👍
This has been most helpful. I really appreciate you taking the time to make these videos. It makes a world of difference for newbies like myself :)
I love the different options you show the seller. Great idea!!
Omg, this is what i've been looking for a long time! I am so glad i find your vedios. Thank you so much!
I never comment on videos but this was great. Saving this video for future Seller financing Q/A. Thanks!
@April Crossley
Ok, I "think" I got it! While the Seller is asking for $150k, in your first offer example, if Seller finances, they'll end up getting CLOSE to the $150k, as follows: Seller to finance (offer the Seller price): $120k
$10k down
Finance: $110k at 5% for 30 years (amortized) = $590.50 monthly x 60 months = $35430
Balloon Payment: $101,011.80 (After 5 years refi, payoff seller, get new loan from bank
at 75% FMV).
Total to Seller = $146,441.80 (close to $150k they originally wanted). Is this *right*? All the other numbers on your piece of paper (i.e. expenses, cash flow, interest) got me a bit confused. (insert Homer Simpson... doh!) :)
Thank you for the great information April. Quick question regarding the interest rate for no money down. Can you give further insight into the lower interest rate when no money down vs the interest rate for 5k down? My assumption is due to the larger financing number using a lower interest rate saves you money. From a lender standpoint, I would assume a loan with a lack of down payment is a higher risk loan so how do you negotiate a lower interest rate for higher risk loan with lenders who would push back against that plan?
Hi April - I am running a VTB scenario for a deal... I have a question for you at your video reference point 15:12 -
you mention the seller nets $146,441.80 as a result of $120k + $26.4k
Can you please double check this? According to my calculation they would net $136,441.80 ($8988.2 + 26441.8 + 101,011.8)
It would make sense since you are paying down principle monthly so TMV plays a role here as you're paying down portion of principle prior to 5 years?
it'd be cool to have a spreadsheet for us to play around with!
www.lazygirlrei.com Deal Analyzer Spreadsheet
How did you find this property? This was overwhelming but it was good.
Did you have to put up earnest money before getting any bills from the seller? Thank you
Excellent vid April~!! I'm just now starting out with FSBO and looking to do a lot of owner financing. I'm also looking to do more no money down transactions as I am starting out with little to no out of pocket cash. This helps a lot.
You can do it. Just stay with it!
Does a seller have to be "free and clear" to be able to offer owner financing?
From my understanding yes, most mortgage companies have a clause in their agreement with the owner that they cannot do this type of deal. A way to avoid this is by having the owner hold the note to the property and do a rent to own deal. In a seller finance YOU own the title of the property. In a rent to own deal the SELLER still owns the note you're just paying their mortgage. - hope that helps
I just made my 1st "oral" offer to a seller using the 3 option method like April shows here.
Jarrett Townsend
Hehe , “ oral “
Which video is the property management systems you mentioned in this video?
Hi April. Thank you for all the education you offer with your down to earth explanations.
I am studying the materials you post and taking action. I must say that I took your excellent training class a few years ago, but due to excuses, excuses, I did not execute the plan at that time.
Please, let me ask you a few questions that I have after watching this great video on structuring seller financing.
a. When asking for seller financing, do you cover the seller closing cost expenses?
I think that a 5 or 10K down payment may not good enough to help convince the seller to become the bank if he will have to pay his/ her part of customary taxes, etc.
b. On the same topic of seller expenses, if the property is on the MLS, would you add the cost of the agents commision (6%) to the amount of down payment agreed or how else would you suggest to manage this?
(note 1: assuming that the cash on cash still looks attractive)
(note 2: I know you prefer Of Market deals; however, you must be running an impressive marketing enterprise that I don't have (yet?))
Again thank you for all you do.
You really lead by example
April , can you recommend banks that are willing to go past 65% cash out on a NOO multi unit ? Credit is 765 FICO. Property held in LLC. Banks seem pretty vanilla in South Jersey. Love your content 👍🏻. Thank you for providing so much value.
P.S. Help me out and I’ll send you new glasses 🤓!
How or with who do you pay property taxes and insurance?
If I get one of these seller financing homes and I do a 10 year term would i be able to just pay it off in full within a years time ( or year and a half )and avoid the extra interest ? I personally have the option of saving for a year to pay for a property in cash or just doing a seller financing now and just pay them back by next year ! I have a “ short credit history “which prevents me from getting any bank loans which is a pain so I was thinking I could do what I explained instead
Quality content
Great video! Thank you!
quite welcome!
Do you have a video explaining Cap rate?
I am 23 years old, not much money, average credit, not good. But wanting to use seller financing so I can move out of the parents house. How should I go about talking/wording the deal to the seller when I get a hold of them
Excellent.
Hello, at 4:05 you mention a video that you have about systems for self managing. Would you mind replying with the link to that video? Thank you!
ua-cam.com/video/O4SW6_SJJXA/v-deo.html here ya go!
GreAT video
Wait how many units are in this building
I have two deals that I would like your help on, I hope you respond 😊
We're doing a calendar shoot of investor babes for 2020... Wed like you to be in it, can you reach out April... thx