All Forum Posts by: Matthew Sutton

Anyone have any tips on how to find folks one or two months behind on their mortgage? Zillow seems to only show them when it's too late. I'd love to go door knocking knowing they were behind a little.

Any suggested builders in Houston for a duplex build? Also, what's the typical cost of a rental grade build? $60, $70, $80, $100 a foot? Looking at a 2,400 sqft duplex plan that I like.

@Josh Mitchell @Brian Garrett 112.5K - 80K is only 32.5K and not 42.5K.  I think there is a Texas rule about not getting the full cash back out unlike other states.  Here is another run at the numbers.

House for sale for 100K - Hard money loan is for 70% ARV at 150K. That means that I can loan 105K on the property. I still have to come out of pocket 25K in rehab for a total investment of 130K. When I go to refinance the property once the rehab is done, I can do that at 80%. That is 120K plus all the closing costs. I still don't think I'm getting the 25K back out.

Okay, so my business partner is stuck on a subject, and I need some help explaining it. Looking at a property at 100K that needs 30K worth of repairs for an ARV of 150K. We plan on renting it out for around $1,350/mo. The property appears to clear about $300/mo in cash flow. Help me explain the value of purchasing the property knowing it will take 10 years to get the initial investment of 30K back out of it if we refinance at 70% of ARV at around 105K.

I know we would have about 20K worth of equity and the initial investment would be paid off in about 10 years.  The note would go down from the 105K also and create more equity.

1.  Is there anything I am missing in showing the logic behind investing in the property and leaving the money in?

2.  Is there a way in Texas to get all of the money back out?  The initial investment and the rehab.  

So when targeting foreclosures, I've got some unanswered questions. I would love some advice. 1. Zillow has a ton of pre foreclosures, but most have auction dates of 4-4 when I check right now. I'm too late to the party right? Can I see which sold and which didn't? Should I stay on them or am I wasting time? 2. Does List source give us a better lead time to approach the owner before it's too late and it's been auctioned? If so, how? 3. Is there a better time of the month to find pre foreclosures early in the process? Best platform to find them?

As a rookie investor I'm a little nervous about getting taken to the cleaners by a contractor that is dishonest. Any tips y'all have learned to avoid paying up front to a contractor?

Steve Vaughan my thinking was similar to your profile. Use my IRA to get properties and basically have the positive tent just building in the IRA like someone else is funding my retirement. Houses paying themselves off and much better long term return than mutual funds. If I use my personal finances I could get about 5 houses with down payments but start eating away at the nest egg. I've never really fully understood the numbers on buying low, investing repairs, and somehow getting the investment back out by securing a new mortgage and renting it out.

I'm pretty disappointed you can't get a mortgage with an IRA...according to my research. I'd like to use the IRA and get 5 or 6 properties and not just pay all cash for one property. Any tips on how to get around not being able to get a mortgage outright with an IRA?

Any tips from the board on how to get the best possible pricing on repairs. I feel like when you go to a contractor, they have a crew working with them and everyone has to get paid. Materials, the workers, and then the supervising contractor. Is there a way to work directly with the workers and not have to pay so much with the main contractor up charging so much? The reason I ask is I have a buddy that has an hourly team. He'll charge $1,500 for a job that only costs him $350 to pay the guys.

Hello everyone. One of my hurdles I'm trying to get over is approaching a distressed seller for the first time face to face. I've been in sales for 15 years and made plenty of cold calls. I'm trying to find the right sincere words to start the introduction knowing they are on the pre foreclosure list. I'm sure they aren't proud of being in that situation and maybe they've caught up by the time I get there. How do you complete the following? Good afternoon, my name is Matthew with ABC company. We.........