All Forum Posts by: Collin Corrington

As an agent, you have a responsibility to the public to be fair and honest.  

Example.  Let's say you had a client that wants to buy a new house because they live in is a dump.  Your investor side sees the potential of their current dump as a wholesale opportunity. So you offer them $50,000 knowing you could wholesale it for $65,000.  This would show you knew the house is worth $65,000 on the investor/open market and you lowballed them and took advantage of your agency relationship. You can get in a lot of trouble doing that.  

Even if you decide to pay $65,000 and take it down as a flip.  You would have to do material work to it before you could list it at $100,000 or you could throw up more red flags. 

Also, in Texas, you must disclose that you are an agent at "any substitive" real estate conversation and provide them an Information About Brokerage Services form.  If you're cold calling foreclosure leads, this can become tedious.  

I know a lot of people might think they'll just keep it quiet about their license, but that's how you get popped.  One deal goes south, some litigation-happy lawyer googles your name and sees you're licensed. BOOM! "Did they give you an IABS?" - Game Over. 

You just have to be more careful as you proceed.  Having a license means you're an advocate for the consumer.  As an investor, you're an advocate for yourself.  And if you blur that line, the State will side with the consumer EVERY TIME!

Don't be scared though.  I do it all the time.  You just have to be aware, forthright, and honest. And some additional paperwork.

But remember, you don't need your license to invest. Sometimes it's a plus, sometimes it hinders.  

I would consider my self active. I basically adhere to a BRRRR strategy but I sell the house owner finance. Then I refinance the promissory note to get my cash out.

I'd define passive as people that would buy notes. They simply invest cash and get cash flow. 

I know Champions School of Real Estate offers both online and in person.  It might be nice to have the option to go into a classroom when this whole thing dies down.  I started my license online and for some reason decided to just put in the classroom time instead.  

I'd even suggest Seguin or New Braunfels for older homes with a lot of character.  Both are about 30-40 minutes from Randolf. You're more likely to find a deal in Seguin at this time though.  Or perhaps even Marion. Cute town there too. 

@Stone Saathoff.  Thank you!  Yes, we do it quite a bit.  It has its upsides and downsides like anything else.  The big thing is the amortization schedule.  If they sell I typically get all my cash invested back too.  A downside is I lose control of the property.  Upside - no tenants to deal with.  Downside - Not as many tax advantages.  It's just a great strategy to have in your arsenal. 

I'll be applying for sure.  Thanks for the tip!

I've used one particular local bank (San Antonio, TX area) to "leverage"  real estate notes I've created.  But during this weird time, they have gone radio silent on me.  This is making me realize I've put a little too much faith in this one institution. 

This is a huge part of my owner finance strategy. Basically it's a BRRRR strategy but instead of the second "R" (rent), I sell the property owner finance. I then take the promissory note (all created by an RMLO, lawyers, and closed at a title company with insurance) and borrow against it to pay back the money used to create the note (Purchase and rehab costs). P&I cover more than the 10 yr loan cost. So I create a little cash flow for 10 years, and then the last 20 years of the mortgage are all gravy for me. Basically an infinite return and a cash flowing property (for 30 years) that I don't have to manage.

Typically they lend between 70-80% of the value of the note.  

Does anyone know of a bank that would consider lending with a note as the collateral? 

Done

San Antonio all day. But I'm partial and don't know much of the other markets =) 

Our market has been strong and they're forecasting even more population increase.  All while the homes are still reasonably affordable.