All Forum Posts by: Kelcey Land

Ryan Spinola is right about the 10k rule of thumb, and I appreciate him saying that it also depends on the buyer. Personally, I really don't care what the person that is doing the legwork profits as long as the numbers work for me. But, I know some people really resent it. I don't mind because there is an unavoidable acquisition cost either way to finding properties. I have found the people that grumble are the people that don't value the time they had to spend to find the deals. With 3 flips closing the last two weeks, I'm actually in a spot where I have more funds than deals. You can add me to your investor list. 

BTW, I love an assignment deal! It keeps costs down for our team. 

I highly recommend Keith Borg of the Borg Firm. He is also an investor that works with investors. 17950 Preston Rd #230, Dallas, TX 75252

Also, if you don't have a good idea of estimating repair costs, you will need a contractor to look at them.

Ronald, I think you may be talking about the loan amount of 130k with rents around 1200-1300 which would mean with your down payment the purchase price may be higher (than 130k). I would suggest you find an investor friendly realtor in your area. Many realtors will charge only 1% or another reduced rate because you are an investor and will hopefully bring volume business. Great deals are usually gone before they hit Zillow, Redfin, Realtor.com because those sites are not real time access to MLS they receive updates. Depending on how much you value the time you spend searching, I would say 1% is a bargain.

Karen is exactly correct, and there is great value in a seasoned LLC. I didn't use mine at all for 3 years then suddenly it's seasoned! But don't let the LLC bog you down. I would say the majority of hard money lenders don't require one, and some won't even lend to one in a buy and hold strategy.

Erik, at this point, what do you have to lose? If it were me, I'd drop by one last time and try to get a few minutes. If you haven't already, clearly explain all your rehab costs including holding costs, and I would even show the profit I was anticipating. When people realize they aren't walking away from an HGTV sized profit, I find them to be more reasonable. Honestly, I'm kind of on the fence about whether you give them a TREC on your way out. Maybe feel them out, buy either way have it drawn up just in case with real signatures (not electronic).

I think the reason no one answered that part of the question is because that's just something you'll need to guess at. Would you buy a house with previous storm damage? Probably. Will disclosing it discount the price? Maybe. Any buyer will have it inspected, and that's where you will live and die. I can't tell you how many times inspectors have messed up one of my deals. I had one write up no GFI plugs in the wet areas as a "critical" item. Sometimes that's all it takes to spoil a buyer, and there is no arguing with an inspection report. OK, now that I'm off my soap box... I would say for every buyer that may be turned off by previous damage, another buyer won't care. Over all it will be a negative, but you should be buying the property at a discount so it's kind of a wash. I do not think you'll be stuck with an unsellable house (if that is your concern).

I would say Richland Hills. It's pretty safe. LOTS of grandma's still live there. Not exactly the greatest school district, but for the money not bad. House values are stable but also on the rise. 

Also, what do you mean by safe? Are you meaning a low risk investment, or a neighborhood you'd feel safe if your grandmother lived there?

lol, nice work