New Investor - Houston Market - Buy & Hold

[Charisse Patterson]

I just submitted my LLC docs for TX and wanted to get some pointers/insight from more experienced investors on the following:

1) What should my next basic steps be in regards to after establishing the LLC (i.e. open business bank account, find lenders)?

2) What’s the most efficient way to locate good Buy & Hold properties; utilize a realtor or simply use websites such as xome or auction.com?

3) What methods of research are used when trying to ascertain the MPP?

4) How do you start to build an efficient team and where is the best place to find contractors?

I have so many questions and have found many answers here in the various forums and books!

Please feel free to provide me with a limitless amount of knowledge and information. 😁

[Cody L.]

Originally posted by @Charisse Patterson:

I just submitted my LLC docs for TX and wanted to get some pointers/insight from more experienced investors on the following:

1) What should my next basic steps be in regards to after establishing the LLC (i.e. open business bank account, find lenders)?

2) What’s the most efficient way to locate good Buy & Hold properties; utilize a realtor or simply use websites such as xome or auction.com?

3) What methods of research are used when trying to ascertain the MPP?

4) How do you start to build an efficient team and where is the best place to find contractors?

I have so many questions and have found many answers here in the various forums and books!

Please feel free to provide me with a limitless amount of knowledge and information. 😁

Lots of people do things backwards. Getting an LLC. Opening a business bank account. etc. Those seem like helpful first steps but they're honestly not needed. Or if you want to do them, they can be done after you get your deal.

You have two main things to focus on:  How are you going to find your deal, and how are you going to finance it.  I'd start with how much property can you buy (a function of how much $ you have and what type of financing you've arranged to qualify for).  Then you can start reaching out to brokers, wholesalers, owners, listing sites etc. to look for deals.  

When you find a deal remember there are two ways to compete to get it. Both valid.  Both used:  Compete on price, or compete on terms.  i.e, it's a $100k home.  Someone might offer $100k with a 90 day close, tons of contingencies, little EM, etc.  Someone else might be $90k but as-is, close in a week, no contingencies.  Depending on what's more important to the buyer, either might win.

I always go in lower than everyone, but aggressive on terms.  I want to win the deal by being the most aggressive, not the highest price.  But that's not always easy and has more risk.