All Forum Posts by: Account Closed

Most of our cash buyers are in California. You have to be careful who you invest with out of state, but I have a great contact/mentor here in the Alamo city. Austin investors do well but it's hard to break in there with the high prices. My partner started there 13 years ago and came down here quickly when he discovered he could buy 30k distressed houses and make 15% cap on them with no maint, if you owner finance. Obviously I am a fan of investing in TX :), but I work with a guy who's done 1000 deals in 13 years, and he is really changing my life in a great way. 

good luck. I got wiped out in the crash in Virginia doing RE on my own, it was rough. Restarted here in TX and doing well with guidance. I hope you have a great year man. 

I flipped a house with a pier and beam foundation problem, fixed for about $3k, no problems with it. Wasn't difficult. 

there are free highly experienced mentors and experts out there, you don't have pay out piles of cash up front. 

welcome sir. We have many CA cash buyers in our market who make very good money in CA but have no life, and want passive cash flow. My partner has guys out there who make $1 million a year who work 70 hours a week and burn out. I wish you the greatest success in your RE investing. 

My partner does hundreds of owner finance deals for homestead buyers here. We seldom will owner finance to investors; it's too risky. Looks like to me the owner wants you to have a lot of skin in the game, which makes sense. My partner would never do owner finance to an investor unless he put down 50%. 

on our homestead buyers, we do 5k down on houses in this price range.

In any case, it's a busy night, I have people to call and deals to work on. I wish you well sir, as well as the original poster. :)

Expenses are as follows: 

1. Taxes

2. Insurance

on some houses now that do need rehab (market has changed), 5-10k on rehab. My first buy and hold I mentioned, tax and ins are my expenses.

Why do I need to provide caps on houses we didn't do? Do your own research, sir. I know the houses we have done, with my partner. 

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Higher cap houses are in areas the market perceives to be 'worse areas', I think that's pretty obvious. Lower cap rates in 'better areas.' We do very well in our blue collar areas on the south and west sides. As do our investors.

I have a $51k house I bought cash, $806 per month I get owner finance, minus $100 per month in tax/ins, I clear 706 per month, cap is 16%+, no repairs by me. End buyer has rehabbed it. It's worth 120k now. Owner finance not rented. Pretty typical. 

I don't know what you're talking about Bob. We take neither big risks or have high expenses on our owner finance houses. 12-15% cap rate is typical. Prices are up here, so cap rates are down a bit, but still great returns. Love my buy and holds here.