All Forum Posts by: Effram Barrett

You're not going to find too many 1b 1 bth for 200k in Houston. There may be 2-3 bd for that price but these are also inside the 610 loop. 

Also, from what i've seen, property taxes are much cheaper inside the city and closer to downtown. It's when you start getting outside the city and into the suburbs where the taxes start reaching past 5k a year. 

To your point if someone is renting a 1bd condo for $700 a month then the value of that condo is not going to very high. For example my condo rents for $750 a month at 773 sq ft and it's valued at 60K, and this is a good location 10 minutes west of the galleria. I also lived in it before leasing it out.

I think your projections are on the extreme side personally, and I would own a condo over rent any day in Houston.

My biggest mistake was not keeping proper track of my expenses for tax purposes.

This was my first year doing taxes on my rental and there are several expenses that I could not prove I had complete. So this year I have an excel sheet on my phone to calculate every expense and also log mileage every time I travel to and from.

I can't complain about my tenant though. She has been tremendous 

Looking for a handy man in the Houston area. Richmond ave area to be exact!

Originally posted by @Mark Chapman:

@Brooke Noth Thank you!! I will certainly be looking for lending help soon. 

@Effram Barrett I would love to, I am specifically in the Atascocita area.  Are there any BP meet up groups in our area or in Houston in general? I have heard of some of the other local groups that they advertise on the radio but have not looked into them.

 I'm not sure if there are any in Humble per se, but there are several in the Houston area usually Monday-Thurs and Saturdays. I did in small meet up in Fall Creek last yr and would love to get something setup closer to that side of town

Welcome Mark. I'm located in the Northeast as well; maybe we can catch up sometime for coffee or lunch. 

Originally posted by @Jonathan Holmes:

Hey there,

First let me say I have never had this result in a closed deal but this has not been due to the owner financing rather due to me walking away or some other issue.

The biggest concern for the agent is the commission. There for I would always offer a significant down payment. How much depends on the property but I have had several agents agree with the idea in theory. I have just never been able to get all the other details worked out to make the deal.

If I offer 15% down the agent will get their commission at closing and since I am a non agent self representing they get the double commission. That only works in states where that is legal.

If you ask every single agent you talk to "Would the owner consider carrying the note for a short period with a significant down payment?" You will here a lot of no's some maybe's and an occasional yes.

This works best or only with a motivated seller, a property that has been sitting on the market or some other special circumstance.

This is really my strategy. Target properties that have been on the market for a lengthy period of time and try the creative financing aspect. 

I wanted to see if it is worth asking an agent before submitting an offer. 

Hello BP!

I have a question regarding owner finance with a listing agent. If I see a house on the market that i'm looking to utilize as an investment property but I want to make an offer for the seller to carry the note, is there any incentive for the listing agent? Do they still receive commissions after closing as though it was funded through a bank?

I'm in a similar situation but it's all about overcoming the obstacles. Is it listed on the MLS? If so, it may be trickier with this scenario but see if the seller is willing to carry the note for a low cash down deal or maybe just the down payment amount. Starting out with 0 cash is about getting creative. Best of luck to you

You may have to go out and get the deals from what I hear. Do direct mail marketing or any other type of marketing. Let people know you want to invest in RE. I look at the market in Houston constantly but I realize that's a small piece of the pie for deals. The practice analyzing will pay off when you catch the fish though!

Way to keep grinding and thanks for showing transparency with the fact that fear entered . It shows true character to bounce back from that and it obviously worked out for your benefit I'm looking to do a BRRRR in 2018 and breaking down the numbers was helpful. Thanks for sharing and good luck on your future endeavors!