All Forum Posts by: Seth Teel

@Jake I. I own duplexes in St. Louis and here in San Antonio.  In St. Louis your city refuse (Trash & Recycle Dumpsters in the alley) is tied to your water bill and oddly water charges are based on number of rooms in the home and stormwater fees, not actual usage. In this case it makes no sense to have the tenants pay water and it is the expectation of the tenants in STL to have the landlord cover Water, MSD, & Refuse.  

In San Antonio most duplexes and even small multifamily properties don't have separate water lines/meters for each unit.  If you want to create separate lines and meters it is at the cost of the property owner (not the utility) and SAWS charges an "impact fee" of $2000 - $3000 for each new line.  These costs alone make it much more affordable to just have the property owner pay the water bill.  If I owned single-family rentals, I would have the tenant pay water.  

All of my tenants pay electric/gas, phone, internet, & cable (if they want them). I do require all tenants to have utilities turned on and have a minimum temperature requirement for the furnace during winter month in St. Louis.  I pay for standard bi-monthly pest control, but if additional services are needed as a result of the tenants lifestyle, they are responsible.  Again, if it was a single-family, I would require the tenants to pay for standard pest control.     

@Juan Ayala  I have a couple attorneys I have worked with for owner-financed and subject-to proeprties.  

Law Offices of Rick Guerra AND

John Low Attorney at Law

PM me for contact info or you can Google it. For some reason the posting rule don't allow posting of actual contact info. 

Welcome. Make sure to check out some of the local MeetUps and REI Associations. From BP, both @Chad Clanton & @Rick Pozos run monthly MeetUps. Hope to see you around... and if you get any good wholesale deals, please send them my way.

You can wholetale, but you would have to close on it first then list on the MLS. It is illegal to place a property for sale on the MLS that you do not own, even if you have it under contract. It is also against the SABOR & MLS rules. This would also open a door to to several types of legal vulnerablilities. If you want to do, buy and close, then re-list. Figure into your numbers the cost of closing, holding costs, potential time line for reselling, Realtor commissions, etc. The deal may become to slim.

Welcome @Robert Hale!  Make sure to check out the meet-up that @Chad Clanton runs. It's mostly folks from BP and there are nor fees or sales pitches, just great discussions.  

Since we don't have a subject property to go off of, we can look at current wholesale market percentages and give you a ballpark based on theoretical numbers. Over the past 6 months in San Antonio I have seen wholesale deals sell at about 74% to 80% of ARV (minus) Repairs. The variance in percentage has to do with a combination of several factors. Typically wholesale deals that make good rentals, will have a higher percentage (approaching 80%). 77% to 80% is commonly seen from the "big box" wholesalers in town for their rental inventory. I have also seen these percentages applied to highly desirable areas (NW, NC, Far North, & Historic Areas) as well to higher priced flip properties with larger potential net profit.

The vast majority of wholesale flip deals I see are put out at 74% to 78%, variances based on location of property, desirability, whether it's a small-time wholesaler or a large organization (i.e. experience and/or size of buyer pool), and potential net profit.  

A simple scenario ex is:  
Subject Property = 123 Main St. (Flip)
ARV = $175K
Repairs = $45K
Wholesale Price = $84.5K (approx 74% deal

On paper this looks to be both good deal percentage-wise and from net profit-wise (before considering carrying costs, resale costs, etc.).

Don't forget when running your numbers to add in your fee! I typically see fees from $3K to $10K for proeprties under $100K purchase price, and $10K or more for properties over $100K purchase price.  There is not set rule or amount.  The key is to not be greedy, but don't leave too much money on the table either.  It may take you a while to find a balance, but a good wholesaler is worth their weight in gold (literally).  

The most important thing is to make sure your numbers are good! Many wholesalers fudge on the ARV or lower the rehab budget in order to make a deal work or maximize their fee. Anyone that has wholesaled before has been guilty of this. It happens. Make sure that you don't make it a habit. If you get a reputation for over-priced properties, low rehabs, and/or inflated ARVs, your properties will sit.

Hope this helps.  

@Christopher Lyerla  Welcome.  Hope to see you around SA.  Any reason you're not flipping in Seguin?  Seems like that market has been on a slow and steady rise.

I have used Jesse Vera of Vera Plumbing & Excavation on several projects.  Prompt and reasonable.  210-849-8430.  Please tell him I sent you.

check out www.gosection8.com.

Craigslist, bandit signs, Bigger Pockets, and networking are all tried and true methods.  It will be difficult to get many agents to just tap you in to their investors/cash buyers.  This why networking is so important.