I feel as if you covered every one of my recent thoughts in the description, thank you for giving me the extra nudge off the fence I've been on for so long!
what about closing costs? what about your hard cash lender fee? not to mention the title company? How long did it take you to sell the first example? and how much taxes did you end up paying in taxes?
I like that slap sound...(SLAP), "RIght into Hip National Bank" HAHAHA. Mr. Nickel, I will be reaching out to you soon. I have a pretty property that does have some good meat on it. Meeting them this weekend.
Ok here is my question if I use a buyer to fund the deal, who’s paying back the money borrowed? Me or the private lender. And who owns the house? Me or the private lender.
Ivan Lane how are you borrowing money if you use a buyer to fund the deal? Can you elaborate? Who owns the house is who’s on title, unless you used a contract for deed type of situation to finance it.
Bootstrap REI I haven’t made any deal. I was watching your video and learning that’s why I asked the question. I have intentions in perusing this way of making money. I plan on using private lending source to do my deals once I get started or owner financing.
Glitter Kitten I used to think that too until I looked it up. Arrears (or arrearage) is a legal term for the part of a debt that is overdue after missing one or more required payments
Can you please give examples of how you can talk a seller into selling this way? I have trouble getting them to understand how it can benefit them as far as being able to pay them more for the property and get them to understand its not a scam.
Great Info. For Example #2, assuming the house isn't livable, would you have repaired it first? How do i factor in repairs on a seller finance deal? Do you give an offer based on the As-Is value (ARV - Repairs)? When doing Seller finance, is it possible to factor in a Wholesale Fee on a House that needs repair?
Because "wholesalers" are exactly what they are, one hitter quitter. They don't know multiple strategies. Secondly, PAY ATTENTION to the video, his ABSOLUTE FIRST DEAL he showed in front of you on this video specifically explained how he gets monthly payments.
On example two, how do you come to your monthly payment of 750? If you are amortizing over 30 years principle based then wouldn't your payment be much lower? Also, with that being said are you offering a repair credit or is that reflected in the price or is it something you mention to the end buyer? Thanks for all the help man.
Peter Cogliano Yes it’s amortized over 30 years and I do tell them to get their own credit repair. However in this particular case the buyer has money already set aside in the trust and isn’t able to access it for another couple of years. So credit was not an issue at that point.
I have a property, seller wants 410k for it, it’s rented for 2k per month and it’s in very excellent shape. The owner wants to sell ASAP and has accepted to sell on terms with substantial down payment. I just need to know if these terms would work: down payment of 15% which is 61500, balance of 348500 will be divided into payments of 1700/mo for 17 years. So tenant is already paying 2k which leaves me with $300/mo. I will sell to an investor for 430k with a dp of 81,500 I’ll profit 20k Not sure if I’m making sense.
@@marsiasc2280 Got it thanks. I have a few of those. When they die it's already transferred to me so there's nothing needed. If not their heirs would have to transfer upon completion of the terms of the contract. But that can lead to craziness which is why I try to avoid that kind of situation. Hope that helps.
Bcott Studios A subject to is only when there is an existing loan that needs to be taken subject to. This was a free and clear home. I did a contract for deed and then sold the house on a contract for deed. If I were to do it over again I would’ve taken a note on the property and then sold it on a contract for deed. But it worked out just fine the way that I did it.
@@BootstrapREI Should I use a contract for deed for free and clear properties or should I take a note? Also what is taking a note on the property? How can I do that? lol Thank you for your help man.
Great video! I had a question. I understand this works great with real estate! I was wondering, and in theory, would seller/owner financing work for something like vehicles or really any other thing people would rent/lease?
@ Bootstrap REI the property that you bought for $125,000 did the buyer ever cash you out? Many people teach to do a sandwich lease option in this example but if you did a sandwich would have it been possible to cash out? I was once a LO and the banks I worked with would only have allowed them to go through with the seller and tenant-buyer under contract leaving the investor buyer out. Thank you for the video. ps ...what did the buyer do withe property seeing he paid so much and needed so much work it wasn't liveable was it?
Thank you for asking. We actually sold this property in 2019. They were not able to cash us out, they split up and got into drugs and we offered cash for keys. However we have had three cash us out in similar situations in 2020. So it is doable. 😉
Hey Ryan question does the type of tenant buyer matter? Example you said what if they bail but you weren't worried cause you verified that, that tenant buyer had a trust paying you every month. Are you able to still go on with a deals if you don't have that verification from other tenant buyers?
Giovannie Rivera If this is the example that I think you’re talking about. They did not have a land trust, but they had a regular air revocable trust. And no, it doesn’t matter because of that. As long as they have the ability to pay and pay it off in time that’s all I care about.
Hello Ryan, do you work in the New Orleans market? Looking to partner with someone to do my first deal..It'd be done using a Bond for Deed contract which is common here
@@BootstrapREI Thank you so much for getting back with me on my question. If the seller sells the property to me, and then I turn around and sell it to someone on terms..wouldn't my side be a wrap?
@@ladyboss38 I see what you’re asking. In essence it is. But a wraparound mortgage is actually a mortgage that is created and recorded and the title transfers to the new buyer. If it’s just terms on paper in essence it is a wrap, but it is not a true wraparound mortgage. Does that help?
@@BootstrapREI Thank you! Yes, I understand a little more than I did before. However, what I need to do is continue studying more to fully understand what a wrap is and how it works. It might take me some time to get there, but I will eventually.
I used an amortization calculator and chart. You can Google it and find one. The seller I had bought from had a 30 year amortized loan and the buyer I sold to had a 40 year amortized loan. By the way, this worked out exactly as I had planned. We got this one off the books in 2019.
I am both highly intrigued and highly confused. At 4:34 you said "I bought the house for $125,000 with @2,000 down..." then in the same deal at 6:37 you said "This was a total win for me because I had no money invested in the property at all..." Do you already have buyers in place before you buy yourself? One minute you say you buy a place then you say i put no money into the deal this is the place where you lose me.
Probably make the deal with the seller then goes to find a tenant buyer. When he says buyers I think he means tenant buyers(who he rents the house to). He gets the down payment from the tenant buyer and pays his portion with the tenant buyers money.
Mil, that is EXACTLY how I do. It's a NO money out of pocket deal for me. I'm still able to buy the house and sell it to a "tenant/buyer" while using none of my own money.
Brian, are you still open to doing JV deals? I would love to learn from you, but could definitely bring the deals to the table. I can think of a few that I could have utilized these strategies on.
@@ryannickelco could you please do a video on how you prospect an ad to follow up on? Like what do you look for in an ad that stands out to you that makes you think it would turn into a seller financed deal!?
Great video. Very helpful for people like me who are new to the game. So it seems like for all of these deals, you closed with the buyer first, got the cash from then, and then closed with the seller? Did it just involve assignment of the contract, or did you actually double close? Thank you! And more such videos on deal analysis would be great :)
Hi Ryan, thanks for your reply. My point was that, if you owed money to the seller for down payment, do you close with the buyer first, collect their down payment, and then use that money to pay down payment to the seller? (If so, is it possible to close with the buyer first even though you don't own the property since you have not closed with the seller yet?) Or did I get it wrong - you actually close with the seller first, pay the down payment out of your pocket, then close with the buyer? This may be very basic stuff, but I'm new so just trying to get a clear understanding. Thanks.
Those deals that I have done in Texas have sold quickly. Meaning I’ve been cashed out. Seller financing can be done in Texas. Lease options are a gray area.
@@BootstrapREI i found 18 off market properties and sent out some post cards.Im calling them on monday or tuesday.I also for a few youtube videos set up.they are not great but they are real uncut
