Making connections in East Texas
Rental Property Investor · Jacksonville, TX · Member since 2018 · 55 posts · 15 votes
Hey Brett,
My first was pretty easy... I did a lot of research first... lots of it! And I read Brandon's books on buying and on leasing rentals before jumping in and that was super super helpful!
I already knew the mortgage person because we were already friends before... She already had real estate that she owned and leased and I asked her all sorts of questions to ease my mind going in. When I found the property I did a quick analysis and also I called her immediately and after I told her the location her response was "Buy it! Make an offer now! Don't wait or it will be gone!" Well, it was... I had found it offered for $40k and needing a lot of rehab. But a few months later it was offered for sale again... it was a flip. So I called my friend again and got the exact same response... so I make an offer on it and we negotiated briefly and I bought it. Probably for a little more than I was as comfortable with, however it was extremely well done and has options that were above average for the location. I had a rental appraisal done for it for additional cost during the process and the results were good enough so that 70% of that number covered my Principal, interest and insurance and property tax payments with a little left over.
I have rented it for nearly $200 more a month than the appraisal said was the max it would get the entire time I've had it.
So all I really met were the title company that we used to close with and that was the seller's choice.... I met the seller who does the occasional flip.... good to keep her number handy in case I am looking for something in the future... and apparently her dad has a small construction company, so thats handy if I need to possibly get a price on some repairs or remodelling that I don't want to tackle myself.
I met an inspector inthe process because while I was looking for something, I made an offer on a duplex and I had an inspector check it out and I was there at the time and I was able to ask all sorts of questions and he pointed out many things to look for that I could look at before paying a pro to come check next time.
I had just the month before closed on the house I am living in, using the same mortgage company, so I got really familiar with the process and all the documents needed, so this time I was told that I was so efficient with all that that the loan processor would not need to do anything if all the customers were like me. So learning what the mortgage companies want to see is a big thing on your first one... like that they want to see a savings to offset 3 or 6 months of payments in case the place doesn't rent immediately...
I met no contractors because I am a little familiar with construction as I was a residential electrician for years a while back, and I have also done a little framing in the past, and I deal with commercial construction some with my current day job, so being a general contractor isn't a scary thing to me at this point if necessary.
I learned that if you have a ROTH IRA, you can remove all the money you contributed without penalty and without being taxed on it as income as long as you don't remove any of the interest that has been earned on it... That makes it very liquid for doing down payments and closing costs.
I learned that lenders do not like any money showing up in your accounts that do not have a paper trail... and making all this easy on the lender will help you get the loan done faster and easier, so no gifts from family or anyone within several month before you start looking to get a mortgage loan. If you do get gifts be prepared to get a letter from the giver formatted to make the lender happy that explains that it was a gift and is not something that has to be paid back. They do not like to see anything that may turn into a loan situation that they are not including in their decision making.
The most difficult part for this one was that the seller was wanting to close in 30 days and 45 is considered fast these days and 60 is normal if everything goes right... but my lender agreed to it and I had to act very fast each time the lender needed something in order to help make that happen. The seller had a legitimate reason for wanting to close that fast.... she was adopting a child and needed the money quickly to facilitate that. So the lender knew about it and everyone worked together to help her make that happen... and it did and they are a happy little family now.
The second most difficult thing was that I had to trust what I had read and trust the numbers on the spreadsheet I had put together as a calculator to show that this would be a cash flowing deal in the end... And trust all that with no previous experience. That was really hard for me. But once I did it and everything did work out... actually better than my numbers showed because the lender was able to lock in a lower interest rate when there was a dip because it was closing faster, so my payment was lower meaning a larger spread available for profits... once I saw that this all does actually work... and pretty much exactly textbook from those books from Brandon on here... It really gives you a ton of confidence moving forward, that you can actually do this and that there really is no massive secret to it. After reading the books I was thinking that it seemed too easy.. that there had to be so much more to it... but like my friend was telling me, you just have to jump in and things tend to work themselves out in the process.
Be as prepared as you can but then go for it. And you have to have a certain amount of trust but then you have to switch from research and calculating to doing it.
I hope that was helpful
Are there any meetup groups in Corsicana/Fairview area?
Hi Pete. Welcome to East Texas. Believe it or not, you’re not the 1st person I’ve met who has come from CA to ETX to raise cattle in retirement. Unfortunately I’m not sure about any meet-ups in Fairview/Corsicana area. Maybe someone else on BP can let you know. Blessings on your move and getting connected in ETX. I’m a home inspector so if I can help along those lines, just let me know.
Are there any meetup groups in Corsicana/Fairview area?
Look up @Tom Keith. You may be near enough to the one in Longview to make that one. I think you mean Fairfield because Fairview is a long way from Streetman.
@Brett Wagner hey Bret. Just got able to read on through this lively little post from East Texas and looks like we have a great showing with everyone chipping in. I would recommend you do as many of the calculators under tools to learn how they function. They are really good. Ask your closing person at title company how the closing costs break at different prices. You will see a trend that allows you to ballpark them real tight. Your agent can also give you a lot of numbers right off the top just by being there all the time. Try to find a good agent that works with investors as they understand the breed. You sound like you have begun a good relationship with yours already. Welcome to East Texas everyone. It is big goes from East of Dallas to Waskom and from Red River to the Bay of Mexico!!
@Brett Wagner hey Bret. Just got able to read on through this lively little post from East Texas and looks like we have a great showing with everyone chipping in. I would recommend you do as many of the calculators under tools to learn how they function. They are really good. Ask your closing person at title company how the closing costs break at different prices. You will see a trend that allows you to ballpark them real tight. Your agent can also give you a lot of numbers right off the top just by being there all the time. Try to find a good agent that works with investors as they understand the breed. You sound like you have begun a good relationship with yours already. Welcome to East Texas everyone. It is big goes from East of Dallas to Waskom and from Red River to the Bay of Mexico!!
Would your friend be able to lend across state lines? Trying to build my lender lists for areas I want to invest in, but would be awesome if she can lend in both Texas and Louisiana.
No worries, you'll learn that soon enough. I just wanted to add the name Fairfield in case someone close by there was using it as a personal notification word. You never know who could help you out here. Best of luck and look me up when you get there. I go through that area about twice a year.
@James Call. What is the benefit to using your company as opposed to my local bank? I have found a few properties that are good possibilities. Also, I want to research a home equity loan - is your company able to do that? Thanks.
@Brett Wagner hey Bret. Just got able to read on through this lively little post from East Texas and looks like we have a great showing with everyone chipping in. I would recommend you do as many of the calculators under tools to learn how they function. They are really good. Ask your closing person at title company how the closing costs break at different prices. You will see a trend that allows you to ballpark them real tight. Your agent can also give you a lot of numbers right off the top just by being there all the time. Try to find a good agent that works with investors as they understand the breed. You sound like you have begun a good relationship with yours already. Welcome to East Texas everyone. It is big goes from East of Dallas to Waskom and from Red River to the Bay of Mexico!!
Thanks Tom. Have you heard of the app called “DealCheck”? It’s basically a deal calculator I guess somewhat similar to BP’s. I play around with that just to see what I get. I really just need to go and make contact with lenders, title companies, etc., etc. and ask questions. I don’t know what I don’t know.
@Brett Wagner, This is true Brett, we have no idea what we don’t know and the best way is to just wing it until you do or maybe hookup with and agent or investor who does know and coattail them. Another person you should hook up with is a Property Inspector. We have a guy here in our area that will go out and inspect for you prior to purchase and he only charges $100. Money well spent if he finds things you might not find yourself. I have not heard of the Deal Check app but I stick with what I know or kind of understand and that is the calculators here on Biggerpockets.
Welcome aboard! Greater Beaumont area here, known as the Golden Triangle.
Glad to see fellow East Texans active on the forums. I am a relatively new investor who purchased my first 3 deals (SFR's) here in Lufkin, Texas with excellent cash on cash returns thus far.
I am also a licensed agent here in Texas as well. Over the past 6 months I have been cramming as much knowledge about different investment strategies and have been extremely excited that i have gotten the chance to apply what I've learned and create some passive cashflow.
I have 3 current buy and holds and would like to acquire 2 more before the end of the year. I'm continuously learning and don't know everything but I'm willing to provide any knowledge or resources of mine to help fellow investors.
I wish everyone here nothing but excellence and profit on all investing endeavors.
I would love to connect and talk investments, answer questions, and share my story.
Hey @Tray Rogers, Congratulations on our properties! Great to see another investor Agent in the area! Shoot myself and @Mike Reynolds a Colleague request so we can keep in touch. BTW. Anyone on this Thread that wants to connect, please do so! I look forward to following each of you in your life.
Hello @Tray Rogers. Look me up sometime. Maybe we can help each other. Thanks @Tom Keith for the heads up.
Thanks for the kind words @Tom Keith! I look forward to staying connected and getting to know you and @Mike Reynolds as well. Do you guys attend any meetups or any kind of networking groups? Im looking to get involved with one within a 100 mile radius or so.
@Jessie York Congratulations on your current rental property! I have been looking at Single Family and condo's there in the Nacogdoches market as a possibility for my next rental purchase. Ive analyzed at least 100 deals there so far. Hopefully you are having some success with good profit margins on your investments. It seems to be a great location for long term rentals.
@Tray Rogers & @Mike Reynolds, I just got home from the Longview Real Estate Investing Group that I help host!! So Drag Mike up here sometime and join us. We meet on the Third Monday evening at Golden Corral on the Loop in Longview. Tray, if you join Meetup.com and look us up to join you will be notified of the meetings and going ons of the bunch of investors trying to Learn with one another . Mike, I am going to get you here someway!!
@Tray Rogers & @Mike Reynolds, I just got home from the Longview Real Estate Investing Group that I help host!! So Drag Mike up here sometime and join us. We meet on the Third Monday evening at Golden Corral on the Loop in Longview. Tray, if you join Meetup.com and look us up to join you will be notified of the meetings and going ons of the bunch of investors trying to Learn with one another . Mike, I am going to get you here someway!!
I am going to get up that way soon. My schedule is starting to wane a bit My project is out of the critical stage or I may just take the dang day off for a change.
@mike Reynolds. I'm confused, are you in Nac, or DFW?
@mike Reynolds. I'm confused, are you in Nac, or DFW?
I am in Nac but the meeting is near Longview which is up from me.
this conversation is livening up! We've been in Nacogdoches for 2 years, but have bought 2 BRRRs in the ft worth area. We just got the second renter all snuggled in, so I'm starting to look for the next deal. My spouse, the one who does the physical labor, says he's not buying another house for a year. We'll see ;-)
@Anna
@Anna Catron, looki like Nacogdoches is heating up in the Investor area. Welcome to beautiful East Texas. If you need any realtor help in the DFW area, Roger Paschal has a meetup group in Lindale and he is Investor Friendly.
Hello East TX BP members! I'm in Nacogdoches also and work primarily as a home builder/remodeler. I'm 3 SFH's into investing and looking to add more cash flow through investing in and out of Nac. I was introduced to BP about a month ago and I've been "diving deep" into the resources and books by Josh and Brandon. The creative financing has been interesting to me and I'm ready to find the right property to try it out on.
Michael