AMA (Ask Meyer Anything): Seller Financing, A Better "BRRRR", & Do You Need an LLC?

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 16 December 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

When is seller financing worth it (as a buyer AND a seller)? Do you need an LLC to start investing in real estate, and will it help you buy more deals? Can you BRRRR (buy, rehab, rent, refinance, repeat) your primary residence to realize some serious home equity gains? We’re getting into these topics and more as we answer YOUR questions from the BiggerPockets Forums. First, a seller has been presented with an interesting seller finance offer. Should they take it? How do they vet the buyer before giving them the house in exchange for monthly payments? We’ll explain when seller financing makes sense for sellers and how buyers can create compelling offers. Next, do one-bed, one-bath rentals do well, or are they too small for most areas? How can you use your primary residence to build wealth without renting to tenants? We’re talking about the new BRRRR, or as Dave calls it, the LIFLOC (we’ll describe it in detail!). Do you need an LLC to invest? Most new investors get this totally wrong. Finally, why do investors and agents think so poorly of wholesalers? Do we ever use them? And how do you tell a good one from a bad one? Looking to invest? Need answers? Ask your question on the BiggerPockets Forums! In This Episode We Cover: Whether or not you should accept a seller finance offer on your house vs. a loan or cash Why we LOVE small rental properties (one bed, one bath) even though most investors avoid them Using the “BRRRR” method to turn your primary residence into a wealth-building property LLCs for real estate, when you need one, and whether they’ll help you buy more deals Working with real estate wholesalers and the legitimate reason why so many investors/agents avoid them And So Much More! Links from the Show Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube Invest in High-ROI Turnkey Rentals with Rent to Retirement Grab the “BRRRR” Book Find an Investor-Friendly Agent in Your Area What Is Seller Financing in Real Estate? Connect with Henry Connect with Dave (00:00) Intro (00:54) Should I Seller Finance? (07:38) Buy 1 Bed/1 Bath Rentals? (12:51) Best Home Investment Ever? (18:21) Do I Need an LLC? (22:51) Working with Wholesalers Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1057 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You've got real estate questions. Henry Washington and I have answers.
0:09.2	Hey, everyone, it's Dave here with Henry, and we're back with a format that everyone has seemed to really enjoy since we've been doing it the last few weeks.
0:17.1	Once again, we're going to take a trip into the Bigger Pockets forums to find a couple of questions from the community, and we'll discuss them and give you our opinions on what the poster should do.
0:29.0	A few of the topics on the list are, is seller financing always a good idea?
0:33.5	Can you burr a primary residence?
0:36.2	And stick around because towards the end of the show,
0:38.9	Henry and I are going to talk about why a lot of investors seem to have a problem with wholesalers
0:44.9	and what that whole sort of feud or gripe seems to be about. Henry, ready?
0:49.9	Let's do it. All right. Well, question one says seller financing. Good idea.
0:54.6	Question mark.
0:56.0	We're selling a few houses in Memphis and we have interest, a letter of intent, on one
1:00.7	house that's requesting seller financing.
1:03.3	They're offering a few thousand more than asking and we'll also pay agent fees.
1:07.7	Our agent is not an expert on this type of deal, but suggested a short-term loan of
1:11.8	three or four years and a bloom payment and written up by a lawyer could work. I've always
1:18.0	steer clear of anything like these offers. Has anyone done anything like these types of deals?
1:23.4	Thanks for any knowledge on this. This is cool. This is interesting because this is from the
1:27.2	perspective of the seller.
1:29.2	So the seller is considering taking a seller financing offer.
1:32.3	Normally when we're talking about this, we're talking from the perspective of the buyer and should you buy on seller finance?
1:37.5	So, A, I love buying on seller finance in the right situations.
1:43.1	And B, selling on seller finance can be very beneficial for a seller in the right
	...

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