All Forum Posts by: Barry Ratliff

@Timothy Edwards

Timothy, I am a long time broker, investor, and investor coach. I am assuming you have a buyers agency agreement with your SA realtor and it says she represents you in all of Texas. If you want to have her to represent you outside her mls area, I would recommend researching properties in the other areas thru free mls in each area and focus on working with the listing agent of a property you may want to purchase. That way she can contact the agent, arrange how to show the property and write the offer. Its a little tough to do that research but most consumers do this already.

Regarding working with an outside agent, you must get permission with your existing agent to contact other agents so she is in the loop and inform the other agents of your proposal to participate. If they don't want to participate in the profits, give them the listing once you get possession or when its ready to market.

For me, I would do whatever to create a deal, relationship and profit from it. I am a Austin area MLS member but work mostly the Temple/Killeen market place. I have an agent in Austin MLS and he is an investor/realtor as well so he understands what type of property to look for. The problem we have been having is the multiple offers on all possible flip properties. Investors are paying way over asking price. More of a speculative type buyers. Hope this helps and good luck to you.

Barry

@James Evertson

Slab. Stick frame. All starts with that floorplan. Depending on who your buyer is, the neighborhood style of homes and competition, your floorplan and standard features will dictate your profitability. Since you have one home, developing a reputation and you're a first timer, just piggy back on what sells and duplicate that.

@James Evertson

Well James my pricing is not current as I have been out of the industry since 2007. However I am getting the itch again and getting pricing on some plans now. But I can tell my market is not like yours. The $117 per foot is not uncommon but I dont know your lot cost, interest carry, construction costs and realtor commissions. In this frenzy construction and real estate market we/u are in, I would maximize the profitability unless you want to sell below market price and dont go over board on the bells and whistles.

No to answer your question for 8' celings, I was selling them for $69 a foot on $10k lot with city sewer. Houses had no fireplace, vinyl and carpet, no microwave, white appliances, 7-8 windows, flat doors, 3 sides brick, 30" upper cabinets, wilsonart counter tops and fiberglass tub/shower enclosures. There's more but u can see these homes were low low end. Always sold before we finished them and no changes. 70 days to build from permit to certificate of occupancy. Made $15-20k net a house. :)

I'm in Heart of Texas, Belton/Temple/ Killeen area. I have built about 400 homes and used 8' foot ceilings in most areas thats not important. Its a matter of perception. I vault from 8' wall plates to 9' in entry, living, kitchen and dining. Master br with 9' pop ups. 8' outside walls saves tons. My hot buttons to draw attention away would be crown, fireplace with limestone, fancy light fixtures, upgraded cabinet doors with 30" uppers, stained concrete or laminate floors and stainless appliances and brushed nickel everywhere and two tone paint. My biggest perception of value was dressing the front elevations with front porches. Bottomline though it all starts with the floorplan design. Square the back, fancy the front, 2-3 ridges on the roof and all hip with a gable on the front. I have lots more ideas, but I make money. Dont be afraid of the 8 footers.

Is $2k per month net passive income and no full time job enough to qualify for perm loan? Or am I missing something here?

All is well providing the SS approval letter to buyer after having to convince the seller it was a legitimate buyer request. Just had to black out bank contact info and acct number. The sale closed and funded.

Here's one possible way. Create LLC, contract on HUD home, get a online pre-approval letter or if u have your own POF or pre-qual letter, find wholesale buyer, wholesale the LLC, get your fee or only collection a portion, retain 1% ownership to sign close docs, close the deal, collect rest of fee and wholesale person gets the house. Anybody chime in here and shoot holes in this strategy.

Shaun and Joel I agree or at least agree due to similar transitioning is going on here in the central tx market. I want to continue bumping this thread as the months go on so that others can chime in on the trends they hear or are experiencing. I'm glad to hear, not really, that I am not only one experiencing tighter returns. New strategies will be experimented so maybe some of us can adjust in our own markets. Keep'm coming. I appreciate all of you.

You made right decision. Even if it took you more time and $. What was original asking price then final price before you made offer and how many days on market? Any comments from that listing agent about this home why never sold?

No brainer to jump in and start early. BP has all the resource info you need and live actual success and failure stories. The books with give opinions of what to do but nothing better than learning here from professionals. Get you a local mentor to start with. Even if you have to split 50/50, its 50 more than you have now and you get a Masters Degree in actual experiences. YOLO!