All Forum Posts by: Austin Hughes

@Kathy Stewart of course you are here to help me out!

So very much appreciated, ma'am.

I'll be giving him a call tomorrow. Have you worked with Scott before?

I've talked to a highly motivated seller, and he's agreed to do a lease option with me. I've also found tenant buyers who love the house and want to get in it. The next step is getting all of the contracts done once the seller and I agree on terms and price. 

I know the basics but I really want top be sure I do it legally and correctly.  For this, I could really use the help of a real estate attorney in Texas. Please recommend any good ones you've worked with, or if you're on BP and you're an attorney, give me a shout. 

Haha hey, Tony... See what the sellers gave to say when you show then the valuation based on 8% cap rate. If they like it, do it! Don't say it's too much until you ask for a lower price

Hey Johnny! Sounds like a crazy ride haha. What are you looking to focus on this time around? Still SFR?

Tony,

I'd just base it on what's happening now as your worst case scenario. If you do a pro forma with higher rates, then you'll have to raise rents to meet your pro-forma, and you'll have a vacancy problem them.

Ray,

Have you, by chance, read the book, Pitch Anything by Oren Klaff?

In it, there is an excellent template for how to present to anybody and "pitch anything."

I used his book to create an outline that I fill in for different scenarios. I would share with you, but it probably wouldn't help you too much, since the concepts come from the book.

That's a great point Ceasar. I didn't gauge his motivation level, but I don't think it was very high. Does seem like a good owner finance candidate, but you're right, has to be a good deal. Since talking to him, I've created a script to use with people who respond top my direct mail. 

I followed the guidelines I found from a blog post on creonline

@Theo Hicks

Thanks for the input. Yes, I have read the book.

You bring up a good point. I need to relax and FIGURE OUT THE NUMBERS. I'll know where to go from there. Thanks

I just posted another thread about my pipeline bursting like a fire hydrant.

Well, here's another one who just called me!

This guy has real estate in the prime rental area of town. Said he has  around $3 million in property throughout Lubbock, Texas, and from the list I got on ListSource, I know he has from 70-100% equity in his property (as that was my requirement).

None of his property is listed on the MLS, and he says he doesn't want to get rid of just one property. If he sells, he wants to sell a lot of them together.

No, I haven't negotiated the price or anything. When he called, I didn't remember what property was his (I sent out close to 100 letters in my last campaign.)

Essentially, there are a lot of options on what to do with this lead. I could get them under contract and assign them out as turn key investor properties. I could take them on myself with owner financing and manage the tenants. Obviously, the strategy depends on the property condition and current status, but just knowing he has at least 7 units in arguably the best rental area of town and $3 mil total elsewhere, I know there is potential for something to be done here.

I just don't know how to approach it. He knows I have no properties (oops) and I'm new (oops)...but I was just being honest with him. I believe that's the only way I'm going to grow my business as big as it can be.

So help me with some ideas people!

Seriously, with the little amount of marketing I've done for real estate deals, I've been getting a bunch of responses. Although I've done a lot of research, I'm inexperienced, and would LOVE some advice.

I am in negotiations on two different properties, one a multi-family buy and hold opportunity (cash flowing like crazy), and another a pre-foreclosure (in a bad area). I've connected with a local investor who is helping me through the process of the pre-foreclosure. He also gave me great advice on a way to structure the multi-family buy and hold, and I got a local bank here to agree to it! Woohoo...now to get the seller to agee. :)

Strategies: On the multi-family, I got a local commercial lender to agree to finance 80% of the purchase price if the seller will carry back 20% of the note (as my down payment). The owner has 100% equity, and they would get a majority of the purchase price immediately, so they might consider this more so than straight owner financing.

Pre-foreclosure, I'm working to get access to his mortgage information to see exactly how much he owes in back payments and how much is remaining in principle. The seller said he'd call them and authorize me, but I haven't heard from him since then (3 days ago). If/When that happens, I'll make an offer to him for his property (including the land next door to the house), pay his back fees, and take over the title under his current mortgage, subject-to. I would make the minor repairs necessary (and cut the ginormous weeds), then sell the house to an owner occupant or investor.

What other ideas are out there, guys?

p.s. I've gotten 2 more calls today from sellers with 100% equity and 1 with a lot of property. Another post coming about that one.