Newbie from Hurst, Texas 11 posts by 8 users

Posted: 07/03/2008 at 03:00PM

Hi Debbie,

Welcome! You definitely have the financial saavy to make deals happen.

Remember, don't spend too much time learning 101 ways to buy real estate...simply get dialed in on a couple of strategies and begin applying them! You and your husband are probably further along in the game than you might think.

I'd love to chat with you more about your current occupation.

Posted: 07/06/2008 at 11:56AM

Hi Debbie, I'm pretty new on here too, and so far seems to be a great resource to lean a lot about how people are having success. I'm over in the Plano/Allen/Mckinney area. I'm not so famliar with Hurst, but I'd bet there are some good deals to be had over there too. I just met someone who probably has a similar position to yours, he is at JPM. Apparently there is an auction coming up where they dispose of a lot of these properties in the next month. I've forgotten the details but I can get them. Anyways, I look forward to chatting or let me know if I can help you out in anyway.

Posted: 07/16/2008 at 07:06AM

Debbie,

Welcome to the site. To find more information about lease options you can check out the lease option section. It is under the creative real estate financing header toward the bottom of all of the forums......good luck.

Posted: 07/17/2008 at 06:09AM

Hey Debbie, Weklcome to BiggerPockets!
One thing you might consider is, as you said, selling on a lease option. You would be selling more as a " retail" lease purchase. Ask your renters if they would be interested in structuring a leae purchase where they give you an additional option fee (as much as you can get) and then set them up on a two year term. They pay you about $200 more than what their current rent is, and you would apply that amount toward the final purchase price if they end up exercising their option and buying it. You can get them in touch with a good creative mortgage broker, and start fixing their credit and gearing up for them getting their loan. If for some reason they don't end up exercising, you can start the process over with another couple. You can also do a search in this site for lease purchase deals and there is a creative financing forum that is very interesting and helpful. Good luck! Mike

Posted: 07/17/2008 at 02:57PM

Welcome to BP Debbie! Great to have you here. My favorite area in the country to invest is in the Metroplex. I have many properties there and will actually be there next week working on deals.

You are correct about lease options in Texas. Realtors/agents/yourself can not leagally do them in that state. The only way they can be done is to have an attorney draw them up. There are a few ways around it, but which ever way you choose, I highly recommend an attorney on your team who is highly experienced in the RE field.

One option is to sell via a wrap mortgage which would be leaving your current mortgage in place, and selling to the buyer at an interest rate higher than that of your current and thus keeping the " spread" You also put the responsibility of taxes and insurance as well as repairs and maintenance on the new buyer rather than yourself which will increase your cash flow. You also avoid property management fees (if you are using them, and if not, you no longer have to self-manage). You will hear about the banks " due on sale clause" which states that if you transfer title to another partie, they have the right to call the full loan due and payable. While this is true, it very, very rarely happens. Particularly now as banks don't care who pays the mortgage, as long as they get it. You may also avoid this clause by implementing a land trust. Search for a thread here on BP on land trusts or go to my website and click on the land trust link. It will take you directly to a BP member who is an expert on the subject.

Good luck and feel free to ask any additional questions here on BP or to me directly. We are here to help.