All Forum Posts by: Account Closed

Jay, Just curious. I always thought Texas had low property tax rates. Where I am at it's 2.36% Is that considered high? Also, The county I am in assesses at about 80% of value. 
$100,000 homes is assessed at $80,000 x 2.36% = $1,888 or $157 a month. 

Here you go... You tell me. This is the most recent from January. : )

@Mo Farraj

Incorrect. What if they dropped the price 10% on the fourth day?

20% on the 90th day.

I'd pay full price on a 90 DOM and yes, even a 365 DOM. I wouldn't even argue the price if the deal was good enough, I may even pay over asking price on a 600 DOM.

Find you a new broker. That is a ridiculous assumption

@Ben Gabin
 
Disclaimer:
First and foremost, I am not a real estate lawyer, nor am I a title professional either. I am simply a guy like you who can't spend thousands of dollars a month to research title a bunch of deals. If I'm really going to make a move on a property, I am going to either close with title insurance, or I am going to pay a title company research it - period.

To ensure I don't lead you in the wrong direction, I would like to clarify that I only have knowledge and understanding of how title works in Texas. For all I know, accessible public information to research title may differ from state to state, and I would be willing to bet that law regarding what sticks and falls off vary from state to state. What I mean by something "sticks" regards something such as a federal tax lien, a judgement, or even to know if they have taken out a home equity loan. If you buy a property in Texas that is pre-foreclosure, for the most part you will be responsible for either paying in entirety the liens or shorting liens if you have leverage. Also, if the owner has equity in the property, they can use that equity to extinguish the liens at closing - for the most part.

Why I Search Title:
My goal when researching is to find out (or get the closest guess) to what they actually have to pay to sell a property. I can cut through deals that are obviously are a waste of effort to buy before auction. Essentially, I want to run a quick search (5 minutes on average per property) and see what's really going on. I don't mean to be harsh when I say this, but delinquent taxes more times than not, have baggage where they have not handled other responsibilities. I'm not saying they are bad people, they often times are having difficulties in their life. That's not always the case, it also could be a honest oversight.

How to Search:
Whatever county you are in, Google "Title Search X County". Most counties around here have a third party website where you can enter the enter the names to search title. The basic search is simple here. You find the names associated with the property (deed and/or deed of trust) and with a little understanding lending basics you can determine a good starting point to check their name with. A title search in Texas, is really researching the names, not the property - for the most part. In Tarrant County Texas, it's on this website: tcrecordsonline.com. A few other counties in Texas it can be found on a third party website like this: countygovernmentrecords.com
Just make sure wherever you are running title from is recommended from the Counties website in which you are searching. I could see how you could easily end up on some third party website that doesn't have legit data.

My Advice:
I recommend taking a class on title in your state, of even paying a local title company to teach you the basics of "what is what" if you have the cash to do so. It’s simple for the most part, but it took me a substantial amount of time to gain an understanding of what I was seeing. I didn't even know what a deed was when I first started learning all of this, seriously! Then when I saw thing like assignment, or appointment, it was really throwing me for a loop. It can be as easy as entering some info and it spits it out on a silver platter. However, that is a service that a title company could do for you - for a price.

Thank you! I was considering that. For some reason I always try to be the short-term payoff guy. I was thinking about that last night, cash flow is what's most important.

@Ronald Rohde

Thank you sir! It is a 25% down loan to value. I'm going to give a broker friend I know a shot, and if that doesn't work I'll go to a local portfolio lender I have a fantastic existing relationship with. 10 day option, 30 day close.
I just figured out what NOI means, I appreciate that!
I'm not even going to bother pulling a comp, since I am happy with the new adjustments today:

20 Year Loan 
Cash on Cash 18.10%
Capitalization Rate 11.62%.
Vacancy 5%
Repairs 5%
CapEx 7%
Cashflow $294.10

@Jim Cummings
You're right. I still look when I pull the taxes, but it is truly is an irrelevant number other than concerning taxes. On the gas a I called a friend, she uses $30 / month in the same sized home, oven only. She said I'd be good at $100 / month.
This is one of the best deals I found. You're right about the counter. Beat him to the punch, I bumped to 70k, which are now the numbers listed above.

I'm putting together my first offer. I found a buyer wanting to sell a duplex in Texas. I have driven the property, met with the owner, but I have not yet had an inspection or walked the inside of the property with the inspector. I believe this is the correct way to present an offer that is tenant occupied.

The seller came up with a number of $76,500. The tax assessed value is $57,510. I have based my offer of $60,000 solely off of the rent comps from a friend who is a a property manager in the area. Rent is under priced by about $50 on the 1/1 and about $150 under on the 2/1. 

I've called the local utility company and have added the electric, water, and trash average for last year. It does have gas, what should I add for that a month? It's a one water meter, one electric meter, and owner pays utilities. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I am not using a realtor, so I'm planning on using a TREC 1-4 contract and presenting it to the owner tomorrow before he lists with his realtor on MLS.

I honestly don't mind paying $65,000 for it. I have a feeling he is going to counter whatever I offer.

@Casey Cranor

Are their any small apartments for around 1 million for sale?

@Rahul Sunkavalli

@Rahul Sunkavalli

There is no balance for me, it's a 7 day a week grind. I work in RE in new construction.

I get to spend a couple hours at night working on my REI goals. The kicker is when I have to go meet somebody or go to view an investment property, it throws my entire schedule off. Even going to the once a month foreclosue sales are brutal. I spend 7-8 nights straight prepping for the sale. Only to show up to the courthouse steps with RE day job issues arising on my cell.

I've been thinking about taking a break and focus solely on stacking more cash and swinging hard again this winter. Just the last few days it's wreaked havoc on me mentally.

@Keith Hackett

All is she is asking from you is a commitment that the time and gas she is investing she will be compensated for. It doesn't cost you anything.

Sign it.