All Forum Posts by: Adam K.

Is there room for you in Houston? About as much room as there is in a mosh pit! You have to jump in and make the room for yourself. Just like the mosh pit it's constantly moving , changing directions and there is no clear entry or exit!

Having accurate sales comp information is crucial to evaluating your deals. Unless you are dealing with true cash buyers who have plenty of it you need to ensure that the deals will fit the financing criteria. If the spread is to thin hard money becomes obsolete. Some appraisers provide limited or desktop appraisal for smaller fees. Find a currently active property in the area you are farming and order one as if you were a buyer. This will at least get you "professional" data to evaluate potential deals. Professional", is a way of conducting yourself and business, not necessarily a title that guarantees anything. Plenty of professionals are crooked and bad at their jobs.

Get some reviews of the HM lenders you are thinking about using, their appraisers often don't find the ARV that wholesalers advertise. Sometimes they don't even find the obvious comps either. If your gonna put down $5k or $10k non-refundable as the wholesale realty companies require you need make sure the deal will fit your goals if the appraisal comes in low or the HML just brokers the deal to another HML and your OOP jumps $10k from what you projected. It hurts!

Are they looking to sell it?

Are the tenants stable? Is the property in good shape? Will it still cash flow to your criteria with the new note? Will the current rent cover the new note at 75%? If you answered yes to ALL questions I would say yes, cash out. Is there a high turnover of tenants? Are there constant repairs? Is the neighborhood and rents in decline? If you answered yes to ANY of these questions you need to evaluate further and make sure you have plans B,C,&D in place for how to keep the property profitable. The equity could be exponentially increasing your returns if you cashed out and reinvested with more cash flowing properties.

Are the tenants stable? Is the property in good shape? Will it still cash flow to your criteria with the new note? Will the current rent cover the new note at 75%? If you answered yes to ALL questions I would say yes, cash out. Is there a high turnover of tenants? Are there constant repairs? Is the neighborhood and rents in decline? If you answered yes to ANY of these questions you need to evaluate further and make sure you have plans B,C,&D in place for how to keep the property profitable.

I know what I would pay, I know what I can sell it for and what I will list it for. I'm taking a survey for now.

Turn Key property with tenants in place. It cash flows right now and is rented under market value at $1000, T&I less than $300 monthly. What would you pay for $700-$800 cash flow if you were a cash investor? Purchased and rehabbed in 2012. Tenants will be renewing for third yr in July. Paid on time very time, even early. Tenants make deposit to BoA with slips that get time stamped. New HVAC in 2013. Not listed yet. 3/2/2 1985

Yes it is worth it! They are stealing from your business. Couple of ways to look at it: 1. They already are in control, your losses will begin to mount with eviction, legal fees, vacancy and eventually repairs. 2. Your ride has already begun, you should of served the notice the first month they were late and 11 days is already to long for this month. Once you serve it they won't pay next months either so now will be out 2 months at least. Figure that into your returns. 3. 50 x's the months late pulse the daily rate, add that to your total cash flow and see how it affects your returns.

As an investor and now licensed agent I don't see what would change. If you are deceptive and believe getting ahead means taking advantage of others than you will get yours someday. I didn't steal any farms from grandma or force their hand. The sellers sold because of the situation they were in combined with time frame, not because they were tricked into thinking it was 1985 and houses are worth $60,000. If you have a truly motivated seller who needs the cash by Monday to dodge the courthouse steps or end the probate burden $150,000 comps don't mean anything. If Cash now is what they want, and it's Win/Win the CMA shouldn't make a difference.