All Forum Posts by: Robert Scholl

Thanks for the replies and offers. I'm actually interested for my parents who want to move from Dallas to the Lakes On Eldridge/Twin Lakes area. Not really a real estate investment inquiry specifically. 

Can anyone recommend an good agent who is knowledgeable in the Energy Corridor area of Houston? Thanks

Right now we're planning on a buy and hold strategy. Thanks for the input.

So after about 2 years of educating myself on BP on the forums and with all the amazing articles, guides, and podcasts, I'm finally to the point of taking action. I found a friend/partner who is also motivated. Another friend of mine is interested in partnering as a private money lender. He is willing to fund 100% property purchase and rehab costs to start and see how it goes. I'm still trying to figure out how to structure the deal. The first project we're looking at is a flip. 

1. Once the structure is determined (straight APR interest for a fixed term or that plus share of profits), what kind of legal documentation is required? Does an attorney need to draft some type of agreement? For straight interest would it just be a promissory note?

2. Should there be one agreement or one structure per property deal? My other partner brought up the possibility of funding the flip, rehabbing, selling, and using that money to fund other projects while the agreed upon term of the private money deal is run out. But this seems complicated and tricky to me. Better to just do one loan per deal, sell the property, pay back investor's principle, and hopefully take some profits.

3. Once the lender agrees, where should the funds be transferred to? We don't have an LLC set up yet, and just have our personal banking accounts. Should my non-lender partner and I set up a new bank account in both our names or since we all know each other, and as long as we have some type of legal agreement document, it really doesn't matter where the money sits?

Thanks and I'll keep BP posted if the project looks good and we move forward.

Good points Corey. Thanks for that information. 

Hi Joe

I just PM'd you as well. Talk to you soon.

Robert

Hi Joe,

I can't send a PM. I sent you a private note regarding this project. 

I'm in Houston and interested in hearing more about this.

Thanks

Robert Scholl

Thanks Aaron. I realize that the rent number doesn't relate directly to ARV, but when doing a gross estimate, if I can buy a property, say at $120k that has an ARV/market value of $200k, do I look to the lower end or higher end when using the guideline? Or it's more dependent on the other rents in that neighborhood for similar properties?

I realize Houston is a huge market, but what are some % of value ranges that fellow investors are seeing for rental properties? I'm trying not to go by a hard and fast 1% or 2% rule as it really depends on running the numbers diligently and seeing if it works. But is there a ballpark range I can go by? Also, if you purchase a home at below market value, do you figure the rent ranges based on the purchase price or the true market or ARV? Thanks.

Looking back at ad, yes it is listed as a ZCF lease hold property with pay-down re-advance option, and initial lease term out to 2032. In light of your educating me, it all makes sense! Thanks again for your input Joel.