All Forum Posts by: Phillip Lanier

Originally posted by @Tiago Alencar:

I sent out my first round of direct mail today for delinquent tax. I'm a little nervous. I'll post what happens

 Awesome!!!  I wish the best!!!!!

Originally posted by @Account Closed:

@Tiago Alencar Not sure how much you paid the assessor for the lists, but most if not all of that information can be had by harvesting the websites.

 Who do you use?  I've hired a couple of scrapers off fiverr and the list was crap. There were a lot of missing data and the excel fields were all unorganized.  

If possible, can you share your scraper person?  

Thanks!

Phillip Lanier 

Originally posted by @Kiki Helland:

Hello
Just a couple cents input... aside from investing...
you say you are investing with co-workers... I’m an HR professional by day and you should consider if there are any conflict of interests policies in the workplace. You need to consider what can happen if things go south at work, in business, and who does the hiring/firing personnel decisions now or potentially in the future.. I have seen these types of things sour and get in the way at work and it doesn’t always end up pretty.
Good luck though and happy investing!

Thanks for your concern.  This will not be a problem at all.  

@Rick Pozos:

1, 4. Ask your local title company who they use for their legal work. Go to them and let them know you need a 2nd on a house. Tell them who is lending the money, who is borrowing, what terms and they will take care of it for you. You can either have everyone sign in the atty office or you can sign at your convenience.

2,3 Atty or you can file the deed of trust with the county clerk. Your lender will keep the original Note. Terms are spelled out in the note that you tell the atty. It is just like your mortgage or your car loan. You borrow 10k. At the end of month 1 you owe 10k + the interest for 1 month (for ease of numbers lets say 12%). Your balance is 10,100. Now it depends, if you are paying interest only you will pay 100. Now your balance is 10k. When the interest builds up next month, you pay 100 again. Your balance always stays at 10k. If you dont pay for 6 months, your loan was still for 10k, but your balance is now at 10,600. google amortization schedule. There are a bunch of them that you can use.

You always offer solid advice!  I really enjoy reading your posts.  I always gain little gold nuggets from following your posts, projects, etc.  

This advice helps tremendously!  Again, I now have direction.  I didn't think about asking the title company.  

@Andrew Postell

Thanks!  That's gives me some direction on where to go, which is what I needed!  

Hi fellow BP'ers! It seems that I have proven myself to my co-workers who now are willing to invest with me as private lenders. I am negotiating two home purchase deals and possibly a third. Part of the incentive is the ability to make a cash offer and close fast. I can fund just one of the deals myself, but that would leave me with zero cash on hand until I refinance out of it. I would prefer to have private lenders fund the purchase of the properties. My problem is, I don't know where to start and how to draft such an agreement to borrow private money. So here are my questions: 1) If co-worker Bob lends me $10,000 with a 10% interest, how would that be structured? Where can I download an agreement form or or loan form? 2) Co-worker Bob wants to make sure his investment is safe. How do I do it as a lien on the subject property? And if Bob is lending $10,000 and I'm paying him 10%, is the lien amount the principle plus interest? In other words, is the lien $10,000 or $11,000? 3) How do I get some type of payment amortization schedule? How are the interest on these types of loans calculated and structured? Do I just automatically add 10% on day one and pay it as a $11,000 loan instead of a $10,000 loan? 4) Where do I file all of the paperwork? Is it something done at closing or can it be done before closing? Do I get it notarized and then file it at the county clerks office? 5) There are about four co-workers interested in lending money to make 10%. Is the process the same for one house purchase with 4 private lenders vs one hoyse purchase with just one private lender? 6) My exit strategy: Use cash to acquire a property using private money. Get a commercial loan to refinance to pay the private lender back plus the rehab. If for some reason that doesn't transpire, I'd wholesale or flip it. I already talked to a portfolio bank and they will do a commercial loan with the rehab. No seasoning. 15% down or 15% on the ARV for a refi. 30 yr amortization, 5 year ballon. 7) Any advice, resources, information or anything that may help is much appreciated. Thank you! Phillip Lanier

Originally posted by @Fred Heller:

I'm blown away at $3300 in property taxes on a $60.000 house. My taxes in Harris County are a little under $3000 for a house appraised at $250,000.

 It's crazy here.  Taxes are high and depending on where the house is located, it can be outrageous.  Because the subject house is in the most desirable area, taxes are high.  In the less desirable side of town, it's a little more affordable.

 I've fought with the county for my own house that keeps climbing every year.  Last year I asked the appraiser if he is going to keep raising my taxes and his answer was, "Yep".  Their justification is that they have to "catch up" with the rest of Texas.  

Sure.... my gluteus maximus!

Hello BP family!

My questions are two fold.

First question:

I am looking at a house on MLS that is owned by the USDA (repo'd). It's in a great area; just one block from a good middle school. I want to pick it up as a rental. The list price is $58,000 and can rent at $900 - $1,000.

It will need about $30,000 in repairs, but I may get away with $25,000.  The big items are some roof work, HVAC (former owners stole the outside unit along with fixtures and even the toilet).  Busted windows, patch work (holes punched in walls), replace garage door....  apparently, the former owners didn't leave graciously. 

So even at the high end, this would meet the 1% rule. $88,000 total invested and rent for $900 to $1,000. However, property taxes are $3,300 annual or $275 a month. Add $100 for insurance and figure in property management, that's more than the principle and interest for a mortgage! Mortgage would be about $350. So my monthly obligation would be $850. If this meets the 1% rule, why am I not seeing any "meat" for CapEx and cash flow? Is it the taxes?

What are your thoughts? 

Question 2:

On the MLS, it says USDA as the owner. Is this considered a REO? Tax records show the original owner, but it may need updating.

Can someone explain the buying process for USDA listed homes?  

Do they negotiate on price?  

Thanks in advance!

Phillip Lanier

@Charles Burkeen

That's a good question.  I'm curious to know if you can retro activate a permit.  I guess it wouldn't hurt to call the city and ask.  Let us know if they allow it if you do call.  I do know it has to have a closet in order to call it a bedroom.  Maybe you can include that into your rehab.

Awesome post!  Thank you for sharing!  I think a 50/50 split is fair because if I was one of your "boots", I am getting an appointment with a motivated seller with out having to risk any up front money for marketing.  I don't have to deal with mailers, etc.

Besides, I love the negotiating part of the process.  

Heck, where do I sign up?