Help with Lead in Houston

[Drew Walker]

Hey BP,

I am new to real estate investing and would like to find a more experienced investor / wholesaler / flipper who would help me check out a property to estimate costs and possibly get under contract. We could split the wholesale fee or whatever is most fair.

I have spoken to the owner of a house near the downtown/midtown area of houston who claims the house is fully paid off and is currently living in. My calculated ARV is about 163K so I offered 115K minus repairs and set up an appointment to view the property tomorrow.

I also have a safety concern as the property is not in the best neighborhood and my website says I offer cash, so how do I ensure safety while going through this process?

Thanks,

Drew

[Belinda Lopez]

Hi Drew, I can't imagine anyone would expect you to show up with a briefcase full of cash and if promise that, then change your website quick!

When someone advertises they pay 'cash' it means, cash in the form of certified funds at closing - usually at a Title company. The seller gets the 'cash' funds but the buyer can still use hard money or someone else's cash to complete the purchase. Always, always, ALWAYS close at a Title company unless you never want to be able to sell the property again.

In addition to the price of the property there are several factors to look at in the neighborhood. Do you know what the average Days On Market (DOM) are for the neighborhood? did you look at crime statistics in that area? Is it 'safe' area? A $165k house is usually in a pretty decent neighborhood in Houston but if it's by UH/TSU or MLK are other 'shady' areas you better really know that you can get rid of the property quickly.

I'd be happy to have a call with you to go over the deal. But more importantly I invite you down to the Realty Investment Club of Houston (richclub.org) so you can start to network and learn from more advanced investors. Your first meeting is free and you can use the code "Social25" to receive $25 off your annual membership. This weekend's general meeting is a funding panel who will give you the info you need to fund your investing.

Good luck!