Starting out and have a few questions!
Hello!
Just starting out in SE Louisiana. I have several questions- maybe these are obvious, but I'm just asking as I have questions.
1. Is having a tax lien on a property more motivation to sell for the owner? I read where it can get tricky depending on how much is owed on the house. I haven't seen much about people using this as a strategy to get leads. Can y'all explain more on it?
2. For wholesaling in Louisiana- it seems it may be better to use transactional funding instead of just assigning. True? Also- do I need an LLC to use this funding?
3. I am trying to figure out the best method/strategy for my family to get started. We are currently renting. I want to put us in a home as well as start investing. Originally, I was thinking just using FHA to buy our home and start by trying to wholesale properties to earn the extra income. I guess my question is what advice would yall have for getting started if you also were looking to buy a place for your primary residence as well?
Most Popular Reply
@Rebecca Hays and buyers will do whatever needs to be done if the numbers make sense. The pool of potential buyers decreases the more work that needs to be done. And for the numbers to make sense it should be 70% of ARV (after repair value) minus repair costs minus your wholesale fee. Most newbie wholesalers underestimate rehab costs to try to make a deal where there isn't one.
Some investors like burnt houses that have fire damage, some like teardowns. I don't have those buyers so I don't target those houses. My bread and butter is 3 bed 1.5 bath to 4 bed 3 bath around $150k-200k ARV, because those are the ones that work as flips or rentals in my market (bigger pool of buyers).