All Forum Posts by: Collin Corrington

Selling on a wrap is always tricky as Brian said.  And finding someone to owner finance with $20,000 in cash to put down is hard too. 

Personally, this deal seems too tight.  Your cash on cash is upside down.  You're putting in 44,000 to get back 21,000 in down payment? You pay out your other investor off the down payment sure, but then you're getting 10,000 on 34,000 invested.  That'll take you 3 years to break even.  That's a long time.  

I calculate sub-to's like rentals.  If I can refinance @75% and cash flow I'm happy.  

I feel like creative financing isn't how you get into a house.  It's how you get out of a house, whole and then some. 

I'd say to start wholesaling in San Antonio.  There are a few companies that will bring you on board so you can learn the trade in a protected environment.  Or you can do it your self. If you need some introductions just PM me. 

Wholesale a few houses to get your bank roll-up. Then I'd move to a clean BRRRR a few times. Then you'll find your way.

Daniel is right that it'll be tough to get any loan with just $5,000 and no job.  Hard money is likely out of the question too. 

Keep reading and keep that fire lit.  I wish I would have had this fire lit in college.  You're farther along in the game then you might think.  

Yeah, it is!  This is one of the problems with the owner finance investing strategy.  

I'm no tax expert by a long shot. But they consider the difference in the taxable amount.  And then ping you again for the interest income. 

However, I do know that there is a $20,000 tax pass-through for real estate investors.  So if that is your only deal then you don't owe taxes on it.  

Also, my CPA found some way to take the gain and spread it across 5 years so I don't have to take such a big pop in one year. Not sure how, but mention it to your CPA. 

Also, there is a book in the bigger pockets store about advanced tax strategies that I just started reading.  I'd put the link but the link police will get me. 

All of my sub-to's I have the signing authority sign a limited POA to the mortgage or lien in question. This allows me to contact the bank on behalf of that particular loan. This prevents me from ever getting tied up like you are now.

I had a woman completely go radio silent on me about two months afterwards because she got caught up in a very serious legal dispute. Thankfully I was able to pull my POA and refinance the property to get her off all docs as soon as possible.

@Natalie Kolodij So, to clarify, if all my workers are contractors, not employees, I should look to expect only $1,000 for myself?  Or $0? 

@Jingru Sui How/where do you find that data? 

@Joe Villeneuve hit the nail on the head. 

I might add that, in Texas at least, when you buy foreclosure you literally have to pay cash at the moment of sale.  So outside financing won't work on foreclosures here.  

The gas vs electric argument sounds like you're trying to justify the Tesla.  I think you know the right answer, especially if you're asking it on Bigger Pockets. =) 

I'm heads-down full steam ahead.  I personally don't see the housing bubble like in 2008/9.  

As for a newbie...how new?  If you know your market well then you should be positioned to pounce like a Joe Exotic Tiger!  This is an AMAZING time to snag your first deal!  There are going to be more fed-up landlords, divorces, foreclosures, etc than you can shake a stick at.  Find one you like and pull the trigger.  It'll be hard to miss a good deal. 

HOWEVER, if you're a new new new newbie, wait.  This market is going to vomit up some weird reactions. A lot good, some bad/weird.  If you don't know what you're looking at you're going to pounce on a wombat thinking its a gazelle. (That was a terrible analogy, I just can't seem to let the Joe Exotic tiger thing go).

How to know which one you are?  That's easy.  Have you ever wanted a specific car?  Let's say a 2019 Dodge Ram Pickup. You search online all day for about a month.  By the end of that month, you are an expert.  You know exactly what the range should be for that truck and if some goober at Joe's car lot posts one for $5,000 less than it should be, you're there within the hour!  It's the same with a house.  Just bigger numbers. 

If you're not that good with your desired market than you need to sit.  If you have a price and house in mind for your first deal, then grab the checkbook.  But remember, if that truck is $15,000 less than it should be, you'll have some questions.  It's the same with a house. 

@Don Konipol True!