All Forum Posts by: Chris Bounds

@Justin Bergen

Successful wholesalers have a systematic marketing campaign that keeps their phone ringing. By using wholesalers for your deals you are basically outsourcing the marketing part of your business. Of course, they'll take their piece of the pie when they sell it to you, but its less for you to worry about. The only way around that is to put your own marketing campaign to action which takes time and money, but if it's successful you'll find deals with excellent margins.

@Eric Benzenhoefer

I hired CKR Property Management last week. They were a referral from Empire for MF properties. It was about 10% GOI for my property.

Eric Tait thanks. I'll look into that.

Eric Tait are repair deductibles legal in TX? I mentioned it to a local PM and he said they weren't. The other argument against them is it disincentives prompt repairs. I loved the idea before lease options were basically outlawed.

@Jerimiah Anderson I agree with Sharon's analysis.

Remember though, using the 50% rule half of your total rental income will go towards expenses, excluding the mortgage P&I. With rent at $1400/mo and expenses half of that then you have $700 left to pay mortgage P&I.

Be sure to crunch the numbers and plan for worst case situations. Do you have the cash to do the repairs and a few mortgage payments if necessary?

@Jonathan Harris Great comments. The quote above sums it up.

@Wade G. Be sure to factor in repair reserves and vacancy. Depending on the age of the property, 6-10% of rent is what I use for repair reserves. I use an additional 4-6% for vacancy depending on the area (how fast does it lease / turnover).

20% cash-on-cash return and a $200/mo bottom line cash flow are my minimums. Excluding reserves it comes out to $500+/mo. From other aggressive landlord investors that seems typical for rentals in the Houston area.

There are turn-key rental wholesale companies out there, but you will pay more for those properties. That effects your returns of course. Depending on your situation and goals that could be a good thing though.

It was nice meeting everyone that came out last night. Let's do it again sometime.

My advice would be to proceed with caution and get referrals. There could be value but I know Houston is full of free or low cost networking / training events too.

I have no experience with their training but their company is a sizable wholesaling/investing outfit in Houston. I've spoken with Marilyn and her husband a few times before. They've given me a good impression so far.