All Forum Posts by: Ramon Cuevas

@John Thedford I had seller sign my assignment of contract and also provided them with a copy of the closing statement at the title company. As @Pratik P. mentioned I could have double closed the deal and kept everything from both buyer and seller. I understand this is a hot topic here on BP and I respect your opinion. It is not illegal to wholesale properties here in Texas. The seller had the option to list the property with an agent or sell it themselves but they chose not to do it. At the end of the day, seller is happy, buyer got a pretty good deal and I have no regrets :)

@Greg H. Thank you for your post. I had seller contact child support and request a payoff. There was not a balance owed but we needed to get releases filed with the county which the title company(Austin Title) was able to get done for us. We also obtained a payoff from the District Clerk in Round Rock in regards to the AJ and paid it off at closing. I am not aware if an SOL was filed for the mobile home but I think if one was needed, it should have been the responsibility of the title company to make us aware of the fact. I can ask.

@Scott Harper The owner finance was an available option to the buyer but he was able to pay cash.

@Pratik P. Thank you for your post. The property was a mobile home in need of extensive repairs. The seller was not in a position to make repairs to the home and had already purchased another mobile home on some acreage. The ARV was probably around $110k, seller was happy to get rid of the property without having to do any repairs or trying to figure out how to deal with a child support lien and abstract of judgment that came up during the title search. Buyer was all in for about 70% of ARV minus repairs. In my opinion a win win for everyone @John Thedford Seller was aware that we were going to sell the property for more. I am curious about what Hard Money goes for these days? 2.5 points and maybe 10-11%? Do you educate your clients on the benefits of getting a loan at a bank or borrowing private money from friends or family versus borrowing hard money? I am pretty sure you don't and the reason why some people would borrow money from you is because they are not in a position to get traditional financing. You are not forcing them to get a loan from you right? The same way a wholesaler is able to buy a property from a motivated seller and sell it for a profit.

Hello BP,

Today I closed on my first wholesale deal and wanted to share the experience with you guys and also hope to encourage others who are getting started to continue their journey and not give up!!!

The Deal: My brother-in law is a realtor and recently sold his house via owner finance. The next door neighbors had asked him to help them do the same thing with their property but instead him and I got the property under contract and sold it cash for $16k more than the contract sales price. We split the assignment fee.

There are some many people who I would like to thank but unfortunately cannot tag anybody lol,

@SeanTerry, @JoeMcCall, @MichaelQuarles, @matttheriault, @benleybovich and of course Josh and Brandon Turner. You guys have all inspired me to do what I do and keep going every day.

My advice to all the newbies out there is to educate yourself, listen to podcasts, attend your local REIA and meetups, find a mentor and last but not least, talk to everyone you meet and tell them what you do because you never know where that first deal may come from.

@Nick Coonis Excellent advice Nick. I did Google modular home companies in the area prior to my visit with the Dept of buildings but decided not to visit their sales office after meeting with the building inspector. I will make it a point to stop by and see what they have to say.

@Nick Coonis Thank you for your post, Nick. I actually went and met in person with the Chief Building Official and basically he said nobody is doing modular homes in that area. The impression that I came away with was that I would have to jump thru a lot of hoops to get it done and I don't have the time or resources to be doing that at this point.

It sounds like there are many benefits to going modular over stick built, wonder why more people don't buy their houses this way.

I sent you a colleague request as this is probably not the last time that I will have questions about modular homes. Good luck with the second home.

@Mark Mathews Thanks for your response. My initial thought was to wholesale the lot but if I am able to put in something affordable,  can make a lot more than the wholesale fee and will also improve the neighborhood at the same time.

Hello BP community,

I have a lot under contract in Round Rock TX with a mobile home that needs extensive repairs. The new zoning would not allow me to replace the mobile home with a newer unit. My only options are to rehab what's there or tear down and build a new SFR. The margins are very small to put up a stick home at the current prices for new construction. Another option that I am trying to explore is the possibility of getting a modular home to replace what's currently there and sell retail.

Any thoughts or ideas?

@Aaron Murphy Hello and welcome to BP. There should be a form in your closing package titled Occupancy Affidavit and Financial Status. FHA requirement is 1 year for owner occupancy. Also, keep in mind that you can only have 1 FHA loan at a time, just something to think about.

Good luck.

Ramon

@Jackilyn De Castro Welcome to BP. I would suggest that you try the rental property calculator here on BP and post the results. How are you paying for the condo?