All Forum Posts by: Ben Lapane

@Jake Tucker

in Houston but everyone knows the average OOP is 25-35k. I just got lucky because when the deal was initially proposed the deal was projected 30k OOP.

Because I had done research on the area prior I knew the numbers were too conservative.

I know I can find deals for 10-15k OOP but I know it’s rare so I might even use my own W2 to start a marketing campaign and find some deals on my own. I know the spread in Houston between wholeseller and investor is a lot so if I source a deal on my own I can easily be <15k OOP on each deal.

Im from Mobile AL so if all else fails I can go there too. I’ll go anywhere to find a deal.

@Forrest Faulconer

Purchase Price: 95k

ARV: 198k

Rehab Budget:45k

HM lender gave me all the money to rehab because it was 75% LTARV (loan to after repair value)

Right out of the gate I paid about 5k in fees. Holding costs will be about 3-4K (14% APR) for the HM loan.

conventional refinancing fees will probably land me about another 2k or so.

I’m all in at about 12k (conservatively)

I can net about $200 / month on this deal so about 20% return.

Remember the kicker is when I sell I will sell over 200k (assuming appreciation by year 5). My goal return will easily be 300%.

@Forrest Faulconer

I'm working with 60k and I am going to own 4-6 SFR. Just did my first one for <12k cash out of pocket. Do the math and that lands me about 5 properties. Each cash flowing at 10-20% (I could get higher cash flow but I'm going for high equity capture instead). With 60k I could make about $1000/month no problem. I would then take that 12k I get per year and invest that every year and acquire one more property until I get to 10 properties. After 10 properties lenders won't lend a conventional loan so I might sell all 10 via 1031 exchange and get into a multi family passive deal. With the passive deal I would then repeat buying more single family homes because after selling all 10 the lenders will then allow me to refinance to conventional loans again. That whole cycle would take me about 5 years but my net worth would triple (180k) by year 5.

As you can see, 60k can snowball very quickly so jump in and find SFH that need about 20-30k in rehabs. That amount of rehab usually gets me about 70% equity capture. My first deal was 300% equity capture.

@Turner Wright I appreciate the share. I have about 4k/month in excess cash I can invest in marketing. of course, I have a nice war chest on the side in case a wholeseller comes with a great deal. to me, this is a great time to start building on what I already know. 

@May Emery Appreciate the encouragement! I will definitely consider working with a list broker. Do you know any list brokers in the Houston area? 

@Andrew McKinnon thank you for sharing. I think I will consider this tactic in the future. I've already paid for EDDM post cards to be sent out this month to a few routes I bullish on. I guess based on that I will know how effective EDDM is and see if cold calling/dropping voicemails is even more effective.

@Joseph Collins

I would seek out whole sellers like New Western.

Hey guys, 

I live in Houston TX and have recently closed on my first SFH rental! I have a network that sends me deals (typically from wholesellers) but i'm looking to source some deals myself. My reasoning for sourcing the deals myself is I expect I can save between 10-12k in spread from getting the SF property myself instead of paying a handsome assignment fee to wholeseller. Also, i'm not looking for a ton of properties, just ones for myself right now so i don't have a problem getting maybe 2-3 opportunities per quarter (i'm not heavily capitalized but my lender is allowing me to buy and hold 10-20 SFH at one time.)

My approach would be to get a list of phone numbers every quarter that meet my criteria (distressed mainly) and cold call/text to see if they are interested in selling. I got my team lined up already (HM lender, GC, foundation guy, conventional lender,inspector, etc) so the ball is my court to find these deals. 

Does anyone have any concerns with my approach? also, does anyone recommend a source for obtaining addresses, phone numbers, etc. so i can start cold calling/text potential sellers?

Would be totally open to any suggestions.