All Forum Posts by: Andrew Herrig

@Wade Stahle I would strongly recommend finding a cash buyer. I can guarantee you the lender will either end up killing the deal or drag it out for months. Most banks will not lend on an assigned contract (and they won't tell you that until well into the underwriting period). As @Sean Cole mentioned, if you absolutely must accepted a financed offer, I would steer clear of Fannie Mae and go with a local bank that has some flexibility to make their own rules. But I would still highly recommend finding a cash buyer (or a buyer willing to close with hard money).

@Rigo Medina Your honesty is commendable. Need more investors like that.

@Chris Hill Depends how much work you want to do. If you know you can get it under contract for a great deal, you can wholesale it yourself or partner with a local wholesaler to make an assignment fee (e.g. you get it under contract for $100k and find an end buyer willing to pay $110k, making you $10k in the middle).

Alternatively, you can birddog the lead to another investor/wholesaler for a set referral fee (usually $500-$2000) that you get paid if they end up negotiating and buying the deal.

@Account Closed I would get a lawyer to draft the note. Make sure you get lender's title insurance and a first position lien. Buyer should pay for all of these costs.

@Travis Glenn Don't rely on the foundation company to tell you how many piers, get a structural engineer's report. In my market (Dallas), EVERY house has foundation issues. From what I understand Houston is similar. In any case, $467 per pier is way too high. You should be paying around $250-300 per pier.

@Heather M. If you're going to wholesale, do it ethically, and get educated enough to know whether or not you have a deal. I personally do not put houses under contract unless it is something I would close on myself (even if I intend to assign it). If you don't have the cash in your bank account, go build a relationship with a hard money lender. If you have a deal they won't fund at least close to 100% of, it's not that good of a deal.

Wholesaling isn't easy. If you're doing it as a newbie to real estate investing entirely, you will have a longer learning curve. It's a good niche where you really can help people in tough situations, but you need to understand exactly what wholesaling is. A few people mentioned the Flipping Junkie podcast with Tom Krol. He equates wholesaling with a pawn shop, which I think is pretty accurate. If that doesn't sit well with you, I would recommend looking at becoming an agent instead.

@Account Closed My wife is a realtor, sent you a PM. 

@Roy Oliphant I am skeptical that any real change will take place at Fair Park. There are a few neighborhoods in the area (e.g. Ideal neighborhood near Malcolm X / Hatcher) that have had some significant public investment and may be turning around, but I am taking a wait-and-see approach on the area overall.

The average on my 6 units is around $300 per month. I think that is a good figure to shoot for, though getting harder to find in Dallas.

You have to define what you mean by cash flow though. My $300 is after all expenses and a conservative estimate of repairs/vacancy/capex. A lot of people throw around cash flow numbers that are basically gross rent minus PITI, which is ridiculous.

Agree with @Todd Plambeck. How well do you know the area? The numbers look close to war-zone territory...