All Forum Posts by: Stephen Burke

My initial thought was that TREC says you can't manage property without broker supervision. No distinction is made on TREC website if its your personal employee and personal portfolio.

Here in Texas, can I pay an employee to manage my own properties? This ensures I can train and keep tabs on things the way I want it done, and essentially after a certain number of properties I will come out net ahead. Duties would include absolutely everything from A-Z, I want to be absentee of managing property. typically, I know to manage property in Texas, some places say a property owner can salary (plus bonus??) employees to manage their personally owned properties. However, TREC does not specifically make this distinction from my searching their website. Does anyone do this, and or know about this specifically?

@Andrew Postell thank you for the message, I am familiar with home style renovation because I work in the mortgage industry. home style is only appropriate for one unit investor, will work for multiunit principal however I'm not interested in making this my primary. In addition, for various reasons this can't go traditional mortgage, so seller finance & refinance later is my only option at this time. I am unsure how to structure this side of things so I will have to look into the aforementioned wraps.

Originally posted by @Chris Mason:

Originally posted by @Stephen Burke:

My parents own a triplex here in Texas worth about 120k, it needs some capex and rent hikes.  Conservatively, rent with little improvements and repairs will be 2200$ in this market and higher with upgrades. I am in the DFW market where rents have been rising 5-10% a year, so I like this property.

They currently owe about 80k on a mortgage.  They have no interest in spending money on the property and don't enjoy managing it.  The plan would be to make improvements, and refinance it within 2 years to get out of that situation, and (if equity allows) pull capex/upgrade money out of it.

I am unsure of the best way to go about a seller financing scenario with a mortgage currently on it.  I also know rules vary depending on state.

How would you structure this deal? 

Thanks ahead of time!

 Call around until you find a traditional lender that can tell you about what "continuity of obligation" is, can spell it without resorting to google, and that can tell you how and why the recent FNMA guideline change will work out to your advantage in this scenario. Once you find that person, assuming the property is in good enough condition to get a traditional mortgage (price to find out = appraisal fee), you can skip all the guru crap and take over the property and mortgage as a simple rate and term refinance. 

I bet @Andrew Postell can help.

 I am familiar with this, but only dangerously.  I wouldn't want to take it over, I would want to pay them actual value.  The other concern with traditional financing right now is the roof may need repaired, and other repairs necessary for traditional financing. 

This drew my attention to seller financing options, but I'm unsure.

Is there no easy way to structure this type of situation in Texas?

My parents own a triplex here in Texas worth about 120k, it needs some capex and rent hikes.  Conservatively, rent with little improvements and repairs will be 2200$ in this market and higher with upgrades. I am in the DFW market where rents have been rising 5-10% a year, so I like this property.

They currently owe about 80k on a mortgage.  They have no interest in spending money on the property and don't enjoy managing it.  The plan would be to make improvements, and refinance it within 2 years to get out of that situation, and (if equity allows) pull capex/upgrade money out of it.

I am unsure of the best way to go about a seller financing scenario with a mortgage currently on it.  I also know rules vary depending on state.

How would you structure this deal? 

Thanks ahead of time!