All Forum Posts by: Alex Montiel

I lived in both, but currently live in Dallas. Both cities have been good to me and my family. Like several folks on here have said, it really depends on what you are looking for and what type of RE strategy you want to deploy.  Best of luck with the move and let me know if you have any questions.

@Sonu Sharma I was at the same seminar with Grant Trevithick and Scott Horne a couple of weeks ago.  I've also watched a few of Mitch Stephens' videos and regularly listen to his podcast, RE investor summit.  They both seem to be the real deal.  I've been interested in the owner financing strategy and have thought of signing up for one of these courses.  Mitch was running a special on his course for $297, but I didn't pull the trigger for personal reasons.  Like you mentioned, the Owner Finance Academy ("OFA") was just under $8K.  What I liked about the OFA was that there was no risk on the first 9 deals.  If you sign up for either program, let me know how they go and what you think!

Hey @Andrew Herrig,

I considered the "due on sale" clause, and saw that as a major risk area in this strategy.  However, a few folks that "teach" this strategy assured me that as long as the bank keeps getting paid, it is unlikely they will call the note due. They didn't offer much more information apart from trying to get me to sign up for their expensive training course / mentorship...

I'm really glad you brought that point up about refinancing. I was actually thinking about that this morning when my wife asked me what if the buyer refinanced and the light bulb went off in my head. I re-worked my Excel file to make the owner financed price a minimum of the down payment I made, plus the mortgage balance w/ the bank. You also made a good point about this working better in the lower price range where the PITI is close to the rent (what I attempted to do w/ the "Amount left for P&I" row in my Excel file).... but after thinking about it a bit more, that renter would have to make 3x the rent, which on an annual basis would be $57.6K. I imagine that they would be able to get traditional financing on a house like my example, barring any odd circumstances (high DTI, bad credit history, no creidt, etc.). So even though the numbers may look good on paper, it may be hard to translate that into the real world...

Hi Bruce Lynn, Thanks for the quick response. From what I understand, contract for deed could only be utilized if it were being sold to a non owner occupant, which may or may not be possible based on who the buyer is. On the financing side, how would that situation be different than if they bought it "subject to" my existing mortgage and/or did a wrap mortgage?

Hello,

I'm currently looking at acquiring a property here in the DFW area for $170K with conventional financing.  The rents in the area are around $1600, so it is just shy of a 1% deal and wouldn't make a great rental property.  If I were to owner finance this house, and convert a renter into a buyer, what would that look like and what types of metrics are typical for cash on cash return, etc.?  I believe that this deal would offer better cash flow than a rental and come with less headache of being a land lord (e.g. property management, vacancies, maintenance reserve, etc.).  Is there anything that I am missing?

Thanks in advance,

Alex

Hi Jeff, I'm also 27 and work for a big four firm here in Dallas. I just started getting into flipping houses last year, but have been wanting to get into buy and hold. If you are ever down town, I'd love to meet up for lunch or coffee to discuss our investing. Best regards, Alex

Hi Melissa, Welcome to BP! Dallas is a great place to invest. I just started flipping houses in the area last year, so I only have a couple under my belt, but so far so good. Let me know if you have any questions and I'd be more than happy to try to help! -Alex

@Justin Stamper - I literally just listened to your episode of BP this morning!  Thank you for responding, I really appreciate your input!

Thank you everyone for the input! I recently purchased J Scotts book on Rehabbing/Estimating and it is a great resource.  I will incorporate those inspection costs when I'm looking at everything that needs to go in to the deal and make sure that I have a knowledgeable contractor to help give a more accurate estimate of the rehab costs.  Appreciate everyones help!

Hello,

I recently met up with a wholesaler that I connected with over BiggerPockets and I'm excited to potentially do some deals with him.  However, he pointed out to me that there is no inspection contingency in the contract, so any inspection has to be done prior to putting in an offer.  Has anyone encountered this before and, if so, how did you deal with it?  Are there investor friendly inspectors that will work with you on completing these inspections in a timely manner prior to putting in an offer?

Thanks for your help,

Alex