All Forum Posts by: Andre Key

I have recently acquired a property subject 2, and after the repairs it will have close to 30k in equity.  I'd like to keep it for at least 5-10 years but I would like to be able to pull some cash from it without owner financing it.

If anyone has done so in the past or have heard of how that can work please respond. Im sure the deed can be used as some leverage but without the existing mortgage in your name how many options do you really have.  Thanks BP in advance.

Nick,

I will be honest you will take your bumps, and loses however you pay for every experience. You can go to school and take a class and pay $1,000's or jump in he game and have some victories and lose.  

Keep in mind that the loses that you will take will be valuable lessons, things that sitting in a seminar or classroom couldn't give you.  You sound like you have multiple exit strategies so no matter what happens you have a solution being a landlord. While not glorious most landlords are providing a future for themselves, and no matter the market people will always need shelter.  Keep going and share your successes.

Ben,

I don't actually loan the money, I have my crew do pro bono work and we get reimbursed on the back end for labor and materials.  I hope that is compliant, but you can see how my resources can be spread pretty thin on these jobs.

Anish,

I appreciate the feed back, that gives me a better perspective on how to find a solution to this problem.  I need to do some research on predatory lending and make sure that even I am compliant with my assistance.

Group,

I have an area of opportunity that I need to seek the opinion of the group.  My wife and I work together as a real estate team and she has the license and I invest.  We work with listings here in Austin, Texas and lately we have been finding clients that need work done to their homes, cosmetics like paint, curb appeal and flooring, fixtures, declutter etc.... Now because of the nature of the Austin market where people are getting over asking price for their homes, we want to help these folks get maximum dollar on there investment. Our niche has been helping those who don't have much of a budget, get their homes presentable so that their homes can sell quickly and efficiently.  A lot of time we use our own money, our crew and get the work done for them cheaply we usually collect for material and labor at closing.  This assistance we provide has made many families happy, however I am spreading labor, money and resources because I have several clients like this all at once and more coming down the pipeline because of the referrals.  

Theses jobs are not costly on average $3K-$5K, however I would like to know if anyone knows of a lender (person) that would be willing to take a risk and loan money to these families at a certain interest so that we can get these jobs done quickly.  Im sure there are things that a lender can do to mitigate risk like maybe put a lien on the property.  We have been selling our properties in days after doing the work but this can be lucrative for a partner or investor that wouldn't mind investing on a dozen of these small deals a year.

The details are vague here but has anyone heard of anything like this before, I would like to hear your feedback.

Waylon,

now that you have been through this experience I am interested in knowing how you feel about dealing with wholesalers in the future, also despite the precautions you mentioned in your post what else would you do differently the next time around.  I wish you had a picture of the guy... 

Well the buyer has conceeded to letting my wife list his home and after doing research this property has been appreciating at a rapid rate yearly, wow Austin realestate is unreal.  I just need it to sell fast as is.  Thanks for all of the feedback.

I appreciate all the feedback the borrower was told that his property was set to go on sell at the courthouse Oct 7th but since he is starting the remod process he has delayed that. The borrower is over a year behind and was given a streamline opportunity he says that would of given him a chance to save his property if he would of paid a higher mortgage payment for several months but he didn't make the payment by the date they suggested. When he called to see if he could get another option like that they redirected him to the lost mitigation department and now he is compiling all of the paperwork.  To me its a big gamble with no gaurantees I wonder if the remod gets denied how long will he have before it goes back to the auction.

BP,

I have a guy that has a great property in an affluent Austin area however he is over a year behind and nearing the fatal court house sale.  He is working on a loan remodification with his bank so that he can get a new start and continue to rent the property.  I suggest that he owner finance to catch up on payments and fees cover closing and keep the property less the deed.  The seller really doesn't want to sell the property because he hopes one day it could yield some great return, however my confidence in the bank granting him a loan remodification is very low.  He's already tried it once before but they gave him the run around until he gave up.  He wants to attempt it again but I want him to understand that with his credit all jacked up the banks are not really working in his favor.

The guy wants to use the owner finance as the last option and wants to rent it out now until he knows if the loan modification will go through, I think he is gambling on the wrong thing and will end up losing the house, leaving him nothing but a loss.  Has anyone seen a remod work in the favor of the seller recently.  I feel that when the current administration got in office and was trying to help homeowners more remods were accepted but in the past 2 years I haven't seen one homeowner have any success with that.  Your thoughts?

I would agree that contacting leads by phone may be more effective.  I find that folks that are in foreclosure especially those like in Texas who are weeks away from the court steps maybe in a "threw my hands up attitude." I find that at lot of folks are bitter and even in denial.  I say this to say that you would benefit from contacting more people on phone because you will go through quite a few disgruntle folk before you get to ones open to use your solution.