All Forum Posts by: Sandy Sawyer

I can't imagine this taking less than 10 years now that the Covid has slowed everything to a crawl. Just being realistic.

I think successful wholesalers soon graduate to full-fledged investors themselves. They keep their secrets close to the vest to avoid competition. To start at the bottom of the food chain and "learn as you earn", maybe start as a "bird dog". I did this myself, actually getting a list of homes that are in pre-foreclosure and knocking on their door. When you find an owner that's willing to negotiate a deal, you ask them a list of questions provided to you and arrange a meeting with your investor. You attend the meeting and take notes. If it turns into a deal, the investor will pay you a referral fee, probably in the range of $1,000-$2,000. When you learn how to structure these deals yourself, you get it under contract yourself. Then you go sell your contract to the investor. Now you are a wholesaler! Your fee just went up to $3,000 to $5,000. (Don't share this information about your lead with anybody until all owners have signed a contract!) Some people enjoy just sticking to wholesaling; but many aspire to become the investor. There are several ways to do that, as outlined in the BP forums. Hope this helps!

Don't forget to consider flooding! Check the recent news and you'll get an idea of what areas are prone to flood. Flood insurance is not too too expensive but you don't want to forget to include in your cash flow formula. Also as you get closer to the gulf you have to include wind insurance. 

My guess would be Austin. I know Amazon is putting a big warehouse in Richmond (just outside Houston's SW side)

If I've already purchased the property with cash, can I still refi using non QM? Does the title need to "season" first?

So, it seems the risk here in doing a wrap is that you end up playing second fiddle in the event the end buyer loses his job and quits making payments or paying taxes (in that case third fiddle!) Am I correct on this? The title is not in your name, it's in the name of the end buyer. If they are making payments directly to the first seller who has the 1st lein, how can you be certain that they are up to date on their bills? I've heard of putting it in some kind of servicing company that keeps you in the loop. I'm asking, not advising here.

Hi Michael, I am limited knowledge of this, but have read that people do this after they have enough equity in the property such that the down payment pretty much pays off the existing loan, if that makes sense

Yes, no zoning in Texas! But having been on an HOA board of directors, I can say just be careful that any changes cannot be seen from the curb. That's really all they have any jurisdiction over. That means that even if you install a window air conditioner, as long as it's on the first level behind the fence, you're fine, but up on the side of the house on the second level will get you a letter. Some are better than others, but I'd hate to see you plunk thousands into a rehab only to get the HOA to come after you to "remedy" it. We renovated our master suite into an apartment with a kitchenette, our tenants come and go from a separate door we installed in the back of the house; so you can't tell from the curb that we've done anything. So far no complaints.

I'm a Houston Realtor and investor

Hi Michael, I am limited knowledge of this, but have read that people do this after they have enough equity in the property such that the down payment pretty much pays off the existing loan, if that makes sense