Anyone looking for a Seller Carry in Lake Havasu? 4.5%!!

[RiverDiva]

2 Brand New 1900 sq ft 3/2 Single RV Homes.

1 South Lakeside and 1 Residential Estates Area.

One is $729,900 and one is $719,900. Great deal for someone.

Seller is willing to carry at 4.5% for 5 years (terms negotiable) with 20% down.

Last Private Loan we did was 7% and I’ve seen them as high as 9%.

Call me for more info. I don’t see this opportunity lasting long.

Stacy Johnson
Team RDP
928-706-4200

 

[Havasu blue label]

2 Brand New 1900 sq ft 3/2 Single RV Homes.

1 South Lakeside and 1 Residential Estates Area.

One is $729,900 and one is $719,900. Great deal for someone.

Seller is willing to carry at 4.5% for 5 years (terms negotiable) with 20% down.

Last Private Loan we did was 7% and I’ve seen them as high as 9%.

Call me for more info. I don’t see this opportunity lasting long.

Stacy Johnson
Team RDP
928-706-4200

View attachment 1180769 View attachment 1180770

Who’s the builder

 

[RiverDiva]

Who’s the builder

Somers

 

[OldSchoolBoats]

2 Brand New 1900 sq ft 3/2 Single RV Homes.

1 South Lakeside and 1 Residential Estates Area.

One is $729,900 and one is $719,900. Great deal for someone.

Seller is willing to carry at 4.5% for 5 years (terms negotiable) with 20% down.

Last Private Loan we did was 7% and I’ve seen them as high as 9%.

Call me for more info. I don’t see this opportunity lasting long.

Stacy Johnson
Team RDP
928-706-4200

View attachment 1180769 View attachment 1180770

I think I know who that 9% one was.......

 

[RiverDiva]

I think I know who that 9% one was.......

Well yes but there are many that want that number. I usually prep my Buyers with 9-10% when they ansk about private money or seller carry and hope we can get it down from there.

 

[Boat211]

I'm liking the house. How deep is the garage?

 

[2Driver]

I think I know who that 9% one was.......

Private money is in the 10-12% range, at least mine are which is what a carry is really. 4.5 is a good deal providing you are able to refi down the road.

 

[Gonefishin5555]

So the seller is willing to hold below market note to move the property which means the buyer should get their own loan and offer to buy the property at a big discount

 

[Havasu blue label]

Very nice home

 

[CLdrinker]

So the seller is willing to hold below market note to move the property which means the buyer should get their own loan and offer to buy the property at a big discount

I’m trying to wrap my head around why the seller would bother carrying the loan so cheap if homes in fact sell so easily

 

[bonesfab]

almost tempting as that is how I bought the house I am in now from a buddy. Problem is with the unknown coming down the pipe.

 

[Deckin Around]

I’m trying to wrap my head around why the seller would bother carrying the loan so cheap if homes in fact sell so easily

Pretty simple, my guess is the seller does not need the cash and would rather have a secured investment (the house) with a guaranteed return of 4.5% vs risking it in stocks or sitting in a savings act getting little or no interest. That and he is opening the door to a lot more potential buyers. Even buying slightly high with a 4.5 vs 6+% makes sense.

 

[Gonefishin5555]

They can sell to someone who is having trouble getting a loan. It’s also allows a seller to defer taxes until loan is paid except I don’t think that works for a builder. Seller can also sell the paper later if they need cash probably have to take a big discount to do it

 

[CLdrinker]

Pretty simple, my guess is the seller does not need the cash and would rather have a secured investment (the house) with a guaranteed return of 4.5% vs risking it in stocks or sitting in a savings act getting little or no interest. That and he is opening the door to a lot more potential buyers. Even buying slightly high with a 4.5 vs 6+% makes sense.

If the seller don’t need the cash why not rent it or air bnb?

Interesting to see different perspectives

 

[Deckin Around]

If the seller don’t need the cash why not rent it or air bnb?

Interesting to see different perspectives

Because they are not confident the market pricing will hold. It appears he only wants to hold it for 5 years and then he wants the cash. It's sort of the same having a rental and making x% - maintenence -taxes etc and being sure you make 4.5% with no liability of house/property issues. 4.5% coming in is better than having your cash tied up in a depreciating asset.

 

[RiverDave]

I’m trying to wrap my head around why the seller would bother carrying the loan so cheap if homes in fact sell so easily

Well I think everyone knows at this point that the “boom” is over. I’m not sure who is saying that it is super easy to sell a house? The market has changed from a sellers market to a buyers market. This is someone that decided to offer up a large incentive to broaden his buyer pool, while still maintaining profitability for himself in the project.

A lower interest rate is attractive to more people. It opens up opportunities for people that would have a hard time qualifying for a loan up front, but would be able to show payment history for the term to qualify later. There’s a ton of benefits to it, and if someone has the bankroll to open those opportunities it puts them and the buyers ahead of the game. Which is the answer as to the “why”

If the seller don’t need the cash why not rent it or air bnb?

Interesting to see different perspectives

There’s pros and cons to everything. Not everyone wants to be a landlord and baby sit short or long term rentals.

With hard money it’s the same as a bank, if someone makes payments and then defaults down the road you get the asset back.

RD

 

[Cole Trickle]

Well I think everyone knows at this point that the “boom” is over. I’m not sure who is saying that it is super easy to sell a house? The market has changed from a sellers market to a buyers market. This is someone that decided to offer up a large incentive to broaden his buyer pool, while still maintaining profitability for himself in the project.

A lower interest rate is attractive to more people. It opens up opportunities for people that would have a hard time qualifying for a loan up front, but would be able to show payment history for the term to qualify later. There’s a ton of benefits to it, and if someone has the bankroll to open those opportunities it puts them and the buyers ahead of the game. Which is the answer as to the “why”


There’s pros and cons to everything. Not everyone wants to be a landlord and baby sit short or long term rentals.

With hard money it’s the same as a bank, if someone makes payments and then defaults down the road you get the asset back.

RD

Good opportunity for someone in limbo that can throw a ton of cash down and then can way over pay the monthly.

Scary part is if the market crashes or the person doesn't fix there credit then a refi would be very tough down the road.

 

[2Driver]

................., if someone makes payments and then defaults down the road you get the asset back.

RD

LOL or some form thereof.

Actually it doesn't work like that.

It goes to public auction with your “make whole” (principal interest late fees) as the minimum bid. Any surplus bid money over min goes to the borrower. And that is only if the borrower doesn't pull a bankruptcy on you.

Only if there is no min bid and no declared bankruptcy will you get the actual property back and that will take 3-4 months.
Lots of shit can go sideways its not that easy.

 

[bonesfab]

The unknown future of the market is the biggest concern.

 

[Havasu blue label]

Good opportunity for someone in limbo that can throw a ton of cash down and then can way over pay the monthly.

Scary part is if the market crashes or the person doesn't fix there credit then a refi would be very tough down the road.

Yes sir it’s a win for the seller if you don’t qualify today you won’t in five years

 

[RiverDiva]

I'm liking the house. How deep is the garage?

54’

Here is the listing on the one that’s on the market. The other one is same specs different finishes with a regular oven range combo instead of the split.

3175 Summit Way, Lake Havasu City, AZ 86406

www.flexmls.com

 

[RiverDiva]

They can sell to someone who is having trouble getting a loan. It’s also allows a seller to defer taxes until loan is paid except I don’t think that works for a builder. Seller can also sell the paper later if they need cash probably have to take a big discount to do it

Builder is not the seller fyi…

 

[RiverDiva]

Yes sir it’s a win for the seller if you don’t qualify today you won’t in five years

Or perhaps there is a Buyer that could qualify and wants to take a gamble rates will go down within 5 years. Even on a dip they can refi with no prepayment penalties.

 

[RiverDave]

LOL or some form thereof.

Actually it doesn't work like that.

It goes to public auction with your “make whole” (principal interest late fees) as the minimum bid. Any surplus bid money over min goes to the borrower. And that is only if the borrower doesn't pull a bankruptcy on you.

Only if there is no min bid and no declared bankruptcy will you get the actual property back and that will take 3-4 months.
Lots of shit can go sideways its not that easy.

I have never done a hard money loan but I know you do them all the time so you would know more than me..

That said I know ole Steve @2FORCEFULL has gotten at least one property back that I’m aware of?

 

[ChumpChange]

Private money is in the 10-12% range, at least mine are which is what a carry is really. 4.5 is a good deal providing you are able to refi down the road.

I don’t consider seller carry and private money the same. The seller carry can bake their profit into the sales price which allows them to offer a lower rate because if the deal goes bad, they are out some of their equity. The private money guy who comes in doesn’t have the luxury of losing equity, it’s all loan amount to them.

 

[ChumpChange]

LOL or some form thereof.

Actually it doesn't work like that.

It goes to public auction with your “make whole” (principal interest late fees) as the minimum bid. Any surplus bid money over min goes to the borrower. And that is only if the borrower doesn't pull a bankruptcy on you.

Only if there is no min bid and no declared bankruptcy will you get the actual property back and that will take 3-4 months.
Lots of shit can go sideways its not that easy.

Been there done that!

 

[Lunatic Fringe]

Been there done that!

So have I.
Instead of going to public auction, the buyers agreed to surrender the property so I got it back and they avoided a foreclosure.

 

[2FORCEFULL]

I don’t consider seller carry and private money the same. The seller carry can bake their profit into the sales price which allows them to offer a lower rate because if the deal goes bad, they are out some of their equity. The private money guy who comes in doesn’t have the luxury of losing equity, it’s all loan amount to them.

what ever you call it just make sure you are in first position....and you can forclose and get the place back...

 

[2FORCEFULL]

I think I know who that 9% one was.......

and if I know him,... he did very well..... probley at 400% ROI or more ,... I need to learn that from him,... small investment and huge huge huge ROI.... and on top it wasn't owner occ....

 

[2Driver]

what ever you call it just make sure you are in first position....and you can forclose and get the place back...

Yep, even so I had a commercial property go to sheriffs sale without notice to me even though I was in first position. It was due to the owner having unrelated debt.

 

[2FORCEFULL]

If the seller don’t need the cash why not rent it or air bnb?

Interesting to see different perspectives

there's a tax strategy involved.... with this deal he could push the capital gains out 5 yrs..... so lets say he's at a close to jumping into a higher tax bracket.. and having to report gains will do it, it makes sense to not get the money now,... but still have it comming in 5 yrs,... if he's like me,getting the cash hurt real bad... like in an extra 50 grand on taxes due, bad,... and bumped me to the highest tax bracket...


here's an example.... lets say your taxable income was 328,000... that puts you into a 24% tax bracket..... now, you sell the homes and you make 155k on one and 150k on the other.... thats 305 k,... plus 328k... you just fucked your self hard.... you jumped into a 37% bracket, and thats only if you are married and filing joint,... single it's only 523,601.00


so as you can see the longer you take to collect.... the better...

 

[2FORCEFULL]

Yep, even so I had a commercial property go to sheriffs sale without notice to me even though I was in first position. It was due to the owner having unrelated debt.

I had a similar deal where the feds tried that... I was able to stop them though... I sold a business to a friend on payments, then leaseed the building to him...he went BK in less than a year.... I evicted him from the building.... soon as he left, the fedes showed up and locked the place up.....I went there the next day andcut the locks and went in and started cleaning.... the feds showed ,... told me that I broke a fed. law... they said they were gonna prove in court that the business owned the building, well that didn't happen.... but I learned this,... If I would have also sold the building I would have really got screwed.... and the biggest crooks are the BK trusties...they try to get their grips on every assest they can...auction every thing off..... take their cut off the top and give all the creditors the same % of debt payment...the bigger guys just help the little guys get a higher %

 

[ChumpChange]

what ever you call it just make sure you are in first position....and you can forclose and get the place back...

Can get a substantially higher ROI in second position here in California.

 

[ChumpChange]

So have I.
Instead of going to public auction, the buyers agreed to surrender the property so I got it back and they avoided a foreclosure.

I once took a deed in lieu of foreclosure but then ended up having to foreclose on the property anyway in order to wipe out the judgments the owner had that were placed behind me. Trainwreck. Have to be patient with this business.

 

[Joker]

I would think that house may be worth $450,000 to $500,000 to a clear minded individual in today’s environment

 

[satellitemike]

I would think that house may be worth $450,000 to $500,000 to a clear minded individual in today’s environment

Still quite a few not clear minded buyers out there!

 

[2FORCEFULL]

Can get a substantially higher ROI in second position here in California.

thats because it's a way higher risk,... when they quit paying on the secound.... they most likely quit paying on the first.. that means you have to pay the first off, and the back taxes to save your second... now add they go into a BK and you can kiss your money good bye.... most hard money lenders got out of the R>E> market... dodd frank laws on private loans are brutal... that and they limit you to how many you can do in a 12 mo. period with out a mortgage broker license

 

[badgas]

I would think that house may be worth $450,000 to $500,000 to a clear minded individual in today’s environment

That (450-500K) seems low for a 3/2 RV garage home that is brand new. That would be back to 2019/20 prices. I don't think we have corrected that far ?

 

[lakemadness]

LOL or some form thereof.

Actually it doesn't work like that.

It goes to public auction with your “make whole” (principal interest late fees) as the minimum bid. Any surplus bid money over min goes to the borrower. And that is only if the borrower doesn't pull a bankruptcy on you.

Only if there is no min bid and no declared bankruptcy will you get the actual property back and that will take 3-4 months.
Lots of shit can go sideways its not that easy.

Yep. 3-4 months is fast in my experience. Last foreclosure property I bought from auction had been in the foreclosure process for a little over a year. I bought it for the minimum bid (what the bank was owed). Only upside for the lender in that situation is that they tack on all back interest (possibly at a high default rate) late fees, penalties and legal fees on top of the principal balance. All of that makes up the minimum bid. The one I got had nearly 300k in fees on a principal balance of about 500k. Property still had about 500k in equity on top of my bid. Got lucky that day, the original owner/borrower not so much…

 

[2FORCEFULL]

I would think that house may be worth $450,000 to $500,000 to a clear minded individual in today’s environment

so is that your offer???? I would think that members here would not low ball another members price with out an intention to buy.... knocking 300k off the price.... ???? builders want $450k and over to build a 1900 sq ft home on your level lot in havasu,... so surley you have a list of new 1900 sq ft rv garage home comps in havasu,...... lets see them......

 

[RiverDiva]

I would think that house may be worth $450,000 to $500,000 to a clear minded individual in today’s environment

I’m not sure which market you are studying? But for a brand new RV Garage Home in those neighborhoods they aren’t far off the mark.

 

[2FORCEFULL]

LOL or some form thereof.

Actually it doesn't work like that.

It goes to public auction with your “make whole” (principal interest late fees) as the minimum bid. Any surplus bid money over min goes to the borrower. And that is only if the borrower doesn't pull a bankruptcy on you.

Only if there is no min bid and no declared bankruptcy will you get the actual property back and that will take 3-4 months.
Lots of shit can go sideways its not that easy.

what happens here, same as the listing we're talking about.. you have to make sure the borrower has a dog in the fight... and it needs to be a big one.... the only way this will go side ways is if the borrower tacks a second on to your first.... then he has no dog in the fight..... and will drag his heals tstay as long as possible.... but.. if not, and say he has a couple hundred k equity.... he's gonna put the house for sale and pay you off... the way you get the home back is if there's no equity... or the second just cuts the loss.... if the second has equity, he'lll have to make you whole to save his investment... the buyer here would have to come out of pocket about 200k..... so the seller would be in a good loan to value situation. . and again..... thats a sliding scale so even if the price is discounted the down % isn't so say the loan is 600k, the seller already got 150k,... and now the home drops in value to only 600k when he calls the loan all due..... he gets the home back and still has the 150k from the start.. plus add the 60k he got for the 2 years of interest payments...

 

[2FORCEFULL]

I’m not sure which market you are studying? But for a brand new RV Garage Home in those neighborhoods they aren’t far off the mark.

straight up bullhead

 

[2Driver]

thats because it's a way higher risk,... when they quit paying on the secound.... they most likely quit paying on the first.. that means you have to pay the first off, and the back taxes to save your second... now add they go into a BK and you can kiss your money good bye.... most hard money lenders got out of the R>E> market... dodd frank laws on private loans are brutal... that and they limit you to how many you can do in a 12 mo. period with out a mortgage broker license

Yeah Dodd Frank changed the landscape fo sure, you just need to be careful. Even taking a deed in lieu can be considered a predatory lending practice in the right conditions so I understand.

Some of my basics.….
I always take first position
Never lend on owner occupied or a rental.
Only lend to repeat borrowers with a track record
Try not to lend on anything I couldn’t dispose of fairly easy.

 

[2FORCEFULL]

So have I.
Instead of going to public auction, the buyers agreed to surrender the property so I got it back and they avoided a foreclosure.

x2

 

[Havasu blue label]

so is that your offer???? I would think that members here would not low ball another members price with out an intention to buy.... knocking 300k off the price.... ???? builders want $450k and over to build a 1900 sq ft home on your level lot in havasu,... so surley you have a list of new 1900 sq ft rv garage home comps in havasu,...... lets see them......

That’s where my offer would start if I was interested and yes very familiar with the neighborhoods in havasu

 

[Joker]

I’m not sure which market you are studying? But for a brand new RV Garage Home in those neighborhoods they aren’t far off the mark.

I’ve never looked at houses in havasu or build costs there. @2FORCEFULL is correct in his statement that I’m comparing that house to some I’ve seen in bullhead.

 

[2FORCEFULL]

That’s where my offer would start if I was interested and yes very familiar with the neighborhoods in havasu

entertaining offers is entertaining to me...

 

[RiverDave]

That’s where my offer would start if I was interested and yes very familiar with the neighborhoods in havasu

Would you expect someone to actually yes to that?

 

[Havasu blue label]

Would you expect someone to actually yes to that?

Pretty dame close