All Forum Posts by: Ben Scott

Bi-weekly meetup for local and out of state real estate investors. All are welcome. 
No sales pitch. Just networking with Oklahoma City real estate folks

Hey @Nancy Nakamura, a licensed agent could type in a property's address and see if the home is in the flood plain. There is no river close to Yukon. And the Canadian River runs through Oklahoma City but there isn't much housing development around that river. Many parts of Tulsa flooded last summer with the heavy rains. But Oklahoma City hasn't experienced any significant flooding in my recent memory. Maybe I'm missing something? More folks in Oklahoma were concerned about EARTHQUAKE insurance in the mid 2010s. But most oil and gas companies have stopped drilling injection wells that most likely caused the spate of quakes.

Really the only downside is having to pay the bi-annual MLS dues (which are close to $1k annually in my state). Upside: you can represent yourself on the buying side and have the seller pay you a commission or leverage a better price in lieu of a commission. (Of course, you have to disclose you're an agent on the offer). You can set up your own showings in MLS and get first crack at all the new listings. And you can buy/sell homes for friends and family as a side hustle.

Yes that is all true. Definitely not my best deal but I figured its worth sharing the strikeouts along with home runs. I'll hold on to it and write off the loss and hope for the equity.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $98,000
Cash invested: $3,000

Owner finance option where I have equitable interest in property. My cash flow is minimal but I purchased at a good price and have instant equity.

What made you interested in investing in this type of deal?

I'd been interested in this area as a buy and hold. The home next door had been remodeled and the home I purchased was in good condition. This home gave me an equitable interest in a property without a ding on my debt/income ratio.

How did you find this deal and how did you negotiate it?

This is an old school company that buys homes at the tax sale, fixes them up and sells them owner finance to high-risk buyers with bad credit. The sale price was fixed but it was a good price for the area and condition.

How did you finance this deal?

This was owner finance. Owner owns the home free and clear. Term is 20 years at 10 percent (yikes). I put $3k down and owner financed the $95k balance

How did you add value to the deal?

I purchased an oven and had the home professionally cleaned. Then I found a tenant.

What was the outcome?

My mortgage is $917/month. I have to pay taxes and insurance. My rent is $995. Do I have cash flow? No. But I believe the home is worth $120k. And I'm accepting I won't make money on this home for several years while I build equity.

Lessons learned? Challenges?

I wanted to find an owner finance deal where I could have a tenant pay my mortgage. I've accepted the reality there is no cash flow. I'm in this particular deal for the appreciation.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No. I'm an agent and I represented myself.

I own or manage 11 doors in OKC and I haven't had one person not pay due to Covid. A few will pay half on the 1rst and half on the 15th. But no one has refused to pay. These homes are A and B class though.

Midwest City is a safe place to own real estate, especially rentals, because there will always be demand thanks to Tinker Air Force base. I haven't done anything in the Mid-Del area. Del City (just south) can be spotty but glad to see you hit a home run in Midwest City.

Awesome @Simon Schermerhorn, what part of OKC was this home?

Hey @Cody Spaulding, like all the other folks on the thread, I enjoy working with investors. Best part of my job. A few of which I met on Bigger Pockets. Let me know if you'd like to grab coffee.

Password is: pockets. Local and out of state investors getting together virtually to discuss the Oklahoma City real estate market. All are welcome.