All Forum Posts by: Tamara Elliott-Deering

You can go as low as you want and as low as you dare. Have they already done price reductions? Are these fannie/freddie/hud properties are bank owned? Do they have the same asset manager.

Government backed foreclosures usually reduce their prices on a schedule. If you come in near when they get ready to do a price reduction you can probably get a jump on the competition. If these are bank owned REO's managed by the same asset manager you may be able to negotiate a package deal.

In my opinion if these are properties you want to add to your portfolio calculate your maximum offer price and offer that. Don't fudge it or get caught up in best case scenarios or trapped in the "it's too low" mindset. Put your numbers together and make an offer. 

Good luck.

I have not looked into franchising, I think you would be better off spending the money you would spend on franchise fees and use that for marketing. You could probably do a lot of direct mail and set up a killer lead generation website and PPC campaign with the money you would spend on franchising. The other option is to partner with someone to do deals.

Gavin,

Since your away so much with your job, maybe a good option would be for you to partner with a contractor on some flips or even the BRRRR strategy. This will be one way to increase your cash flow while cherry picking the best deals to keep as rentals.

I am a contractor and a Realtor but I'm in Austin not in Houston, although the market is much bigger in Houston so I've certainly considered traveling for the right project. My biggest concern with jumping into the Houston market is I don't know it so I'm afraid of buying in the wrong location.

Best of luck.

Tamara

I'm looking for mobile homes but not in CA. If through the vagaries of marketing you end up with one in Central TX let me know.

Thanks,

Tamara

I would move to Mississippi in a heartbeat if I could but my husband told me that he won't even drive through the state, he'd drop me on the western border and pick me up on eastern. He's a yankee through and through, what's a girl to do. Anyway, I concur with @Susan Maneck, there is a lot more room to make some money in the buy and hold world in Mississippi than in Texas, at least from a central Texas perspective. One other option you can consider is house hacking your first investment. Have your Dad help you get a fixer somewhere near where you go to school in Denton. Fix it while you live there and rent out rooms. As for your Dad and his high yield requirements he may look into becoming a private lender or an equity partner. His returns will be higher and more consistent than with buy and hold at least in the short term.

I started by getting my RE license, not what I would recommend necessarily but that's what I did.

The bank of Mom and Dad funded my first flip and still cover my shortfalls, so far it's worked out way better for me than them, a situation I hope to rectify shortly.

I focus on flips because that's what I love to do but if I were just starting out I'd focus on wholesaling, your on the right track with flyers and possible door knocking. I'd look into bandit signs (if they are legal) and driving for dollars. Do what ever you can do to start getting deals to come to you. I would probably also set up an inexpensive website and play with lead generation that way. You've got time to experiment so get started and keep at it and you'll do great. As for your final question, I think I answered it first. House hack, get roommates to cover your bill and stop paying UT for housing.

Best of luck to you. Keep us posted.

@David Sray

Welcome to Biggerpockets. Congratulations on going the pre-qual route. It's vitally important especially in our area because the market is so competitive right now.

I believe so or you could go with one of the big guys like wells fargo

It is my understanding that the bank loans are based on the location of the property, not the location of the corporation. For instance, my credit union in Seattle will not loan on Texas properties. Does that make sense? I also have a hard money lender based out of Colorado that loans on properties in TX but not other states. Hope that helps.

Even if your estimates are accurate, using the 70% rule, the person you wholesale the property to would want their cost to be $86,400 for you to take $5,000 you need to be at $81,400, and someone will have to cover closing costs. I personally don't use the 70% rule to evaluate my properties because I earn money on other parts of the rehab but a lot of investors do.

Congratulations on your rental. Welcome to BP's people are really helpful here so don't be afraid to ask questions.