All Forum Posts by: Austin Faux

If your sweat equity pumps the ARV enough you can always do a 2nd mortgage (HELOC or Home Equity Loan) if it covers the private investor. But @Moses Wanjuki is right in just trying to get a conventional loan from a bank.  You might not even need to put a down payment on the property if you build up the equity enough, and just use the equity as the down payment.  Overall you need to go talk to the banks, community banks especially because they're a little more flexible, plus you'll be building a great relationship with that bank for future deals.

@Nicole Glaros Welcome!  Like so many of us the opportunity to do a deal all depends on creating a lead generation system, and the quality of those leads coming in.  When it comes to real estate marketing there is a lot of options: direct mail marketing, Facebook marketing, Bird Dog training, etc.

My suggestion is to build a system and work it for leads.  Don't leave any 1/2 bridges built. Get the system going from start to end and start monetizing leads.  You can also find potential leads if you have money you can contribute to a deal and enter a joint venture situation.  Then people are coming to you with deals and you don't have to rack your brain on building a good marketing plan.

Welcome!  Remember the road to success contains "new problems" and a little bit of fear.....head in that direction ;)

Originally posted by @Bill Gulley:

John and Jason are correct Tim.

I'm also seeing arbitrary figures, as if you just plug in a number and assume it will rent and appreciate, if the place is worth 88-90, just bumping up a price to "rent to own" is predatory. So is the rent. 

Next, rent to own will need to be Dodd-Frank compliant, I'm sure it won't be as I don't know a RMLO in town that will originate that. 

Next, if it's the white 2 story on S. Broadway, they must be desperate at that price but it won't rent over 850.00. If it's on Sexton, you might do go getting 800. 

If your option to purchase is based on a reduced sale price, you don't have an option, you have a sale contract. :)

None of my numbers are based on appreciation, but you are correct in that they're educated guesses.  I have been talking to realtors down in Springfield asking them about rents, and sold prices in the area, etc.  Plus I've been talking to multiple attorneys down in Springfield about the legalities, contracts and how to set this up.  Either way I was planning on getting 30-60 days for due dillegence and to see if I can find a "rent to own" tenant otherwise I'll walk.  Obviously that isn't the ideal situation for any of us.  

Hi and good job! So I am an Internet marketing professional and have been doing SEO for real estate investors for years before becoming one myself. Your website looks good and a motivated seller would call or click your button if they need to sell. That being said I would make your contact buttonBig bold and red. You want it to really REALLY stand out. As far as SEO all you need to do is get a blog and keep it updated with 2-4 blog posts a month. Get on Yext.com and buy their local package with duplicate suppression. MAKE SURE the address phone and contact info is EXACTLY the same on your website as on your Yext listings. Get a Google Adwords account and upload the remark wrong code to the back end and get a Facebook tracking pixel on the backend too. Make sure those things are on every page of your website. What these two things do is allow you to "tag" and categorize the traffic coming in so you can post ads that follow them around the Internet by doing a remark eying campaign. Update your google business page and make sure it's concerned to your website and the name address phone number are the same on the website. Go around to other real estate websites and offer to write a blog post for them and put a link to your website. Make sure the links are a mix between your URL and 5-6 different anchor text keywords you want to rank for. Don't over do it on anyone keyword because it looks unnatural. All of that being said you need to focus on the next step that makes money. You need to work on finding motivated sellers so don't get caught up in the details of Internet marketing if everything isn't perfect right this minute. Hope that helps

@John Ching @Jason Miller 

The Zip Code is 65807 Sqft. 1700. 4/2

She sent me copy of her Statement and she still owes: $88,620.20

Principal: $142.42

Interest: $479.26

Escrow (taxes and insurance): $212.38

Total Monthly Payment: $834.06 

This is what I offered her:

I pay $600/m and she pays $234.06/m into an escrow account, and that account pays the mortgage each month.  I also have the option to buy the property within 72 months and for the remaining amount left on the mortgage at the time of purchase.  The main reason I did the $600/m is because of you're guys comments on $1,200/m rent being hard to setup.  If that's the case I would try and shoot for: $850m rent w/$10,000 up front Option Fee that doesn't go towards the final payment on the property and sell for $89,995.  

Proft (36 months): Rent: $9,000 / (Buy at: $83,260) Sell: $6,7355 / Option: $10,000 = $25,735

Profit (72 months): Rent: $18,000 / (Buy at: $74,051) Sell: $15,944 / Option: $20,000 (2 Renters) = $53,944

Awesome I'll be there!

Welcome! There is a lot of different things you can do to find a mentor in Denver. The easiest and fastest thing to do is start going to local meet ups and REIA groups. Plus bigger pockets itself is really like a mentor since you can jump on and ask questions!

Let me know if there is any I can do to help!

Thanks,

Austin-

Originally posted by @Jason Miller:

That rent is really steep for Springfield, unless its a really nice house, in which case I would be interested in buying outright. If you care to PM me and I'll give you my phone number and we could talk about it.

Jason as far as rent I was going off a quick scan through Craigslist for Springfield.  I found some rents as cheap as $450/m but I did see people asking for $1000/m for houses.  My thinking is "Rent to Own" is kind of rare so you are usually able to get away with upping the rent a bit, hence $1,200/m.  But really it's whatever works as long as you can cover her monthly mortgage and leave some profit on the side month in and month out.

Thanks!

@Jean Bolger From what I've found on the MLS for quadplexes they're usually wanting to sell around $500,000 and we have a VA Loan for $200,000 and won't have to pay much of a downpayment.

@Bill S. Thanks Bill.  Yeah I was thinking it was going to have to come down to a targeted marketing plan.