All Forum Posts by: Judson Thornton Tucker JR

You should also consider that property taxes on a 950 sq ft home inside the loop of Houston has around $12,000 in property taxes a year. Generally speaking, houses are also very old as well. Fixing and maintaining these homes can be a 30-40k adventure. Additionally, those same houses would sell for around $400,000 for under 1k sq ft. If you get in the 2k sq ft range you are buying a $500-$600,000 home that was built in the 20's, could need 10's of thousands of dollars of work, and owes $22,000 in property taxes a year. 

The rent is absurd, but the capital to own is equally absurd. 

Welcome to BP, Liz. I live in Houston, but I do not look to invest in Houston. Though I don't typically look to invest locally I'm happy to give you some areas to target (depending on what you are looking for). I'm sure there are lots of people on here that know way more than I do on the Houston market, but it is very expensive and still going pretty strong. Depending on who you ask it may be getting overheated, but with Energy prices somewhat stable, though we just dropped some, Oil and Gas jobs aren't going anywhere soon. The rental market is extremely strong inside the loop, but you are going to pay. Happy to give you any guidance I can, depending on what you are looking for. 

@Andrew Postell thanks so much for the info. I'll definitely look into that. One quick question, if you don't mind. Filing a Lien on both my private investor and LLC would work only in the event that I use my cash to cover what my investor doesn't correct?

Hello all,

I have some access to a private loan, however, it may not be enough to cover the entire purchase and rehab. The first solution would be for me to cover the remaining with personal cash, then attempt a cash-out refinance to pay my private loan back. 

My question: has anyone ever used a private loan to cover the 25% down for an investment mortgage and the rehab? If so, could you do a cash-out refi to repay the private loan assuming the ARV is high enough to cover? As an example if I have a $25,000 PML and I use $10,000 for the rehab. That leaves 15k to obtain a mortgage on a $60,000 home.

Let's assume a ARV of $95,000 and a cash out of 75% for $71,250. This pays the remaining 45k on the mortgage off with $26,250 to pay the private loan back (in hopefully 6 months or so).

While this is all hypothetical, I'm new to REI and want to make sure I understand all strategies before I put any offers on a home. Has anyone ever used PML for a downpayment? While I have cash to cover, I'd rather use the access I have for a private loan and keep my cash available as a reserve on the project. It feels a little funny to take out a mortgage only to turn-around and do a cash-out refi 6 months later but curious as to everyone's thoughts/other strategies you might recommend. Thanks in advance!

I plan on attending unless something last minute comes up at work. Looking forward to it!

Hey @Luke Miller could you elaborate a little further on your comment? By nature, I would assume if one partner is providing a short term HML that partner is "active" and if Michael is going to buy and hold he would be passive. Just curious as to the syndication created because it would seem as if Michael would have "management" of the funds and project. I am also very green to real estate investing so I apologize if I'm missing something. Any and all help is appreciated!

@Alex Varner

This has been touched on a lot in this thread but I wouldn't pay 50% up front. Just offer to pay for materials and make certain your contract is very clear. As a compromise maybe you could offer an incentive for completing the job, since it seems he is in need of some cash flow. Paying for materials allows him to get started and allows you to know exactly what you are buying and how much it cost. That along with a 3 maybe 4% "bonus" for completing ahead of schedule is a good way to find a win win. Good luck!

Great job Aaron! Quick question for you. Did you just go ask the credit union for the 90k with no money down? What type of loan did you get and was the rate similar to a traditional mortgage? 

Hello all,

I am new to Real Estate investing and currently researching areas for my first Buy and Hold opportunity. I have a potential lead from a friend of mine in North Mississippi. He has been a part of several wholesale deals that sound promising and has put me on his list. 

Before he comes to me with a property to look at, I want to make sure I am prepared to do the necessary diligence and make a decision. Since I am new to Real Estate, I am not going to be very knowledgeable on the actual transaction that a Real Estate agent would normally execute. Is it wise for me to find an agent in that area that can assist with the actual buy? I am not sure if anyone has used an Agent to assist with a wholesale deal but figured I would get some advice.

Thanks in advance!

Congrats Josh! If you don't mind (I'm a new investor), how did you go about getting the 80% LTV cash-out refinance without a seasoning period?