All Forum Posts by: Account Closed

I like this "subject to" arrangement, it seem simpler and more secure for me since I'd already have the deed. Thanks for the suggestion King!

@Bill Devola great clear advice, thank you for that! @Don Konipol, this is good stuff to know. I forgot about homestead laws and the protection they offer against a lender if the loan is not done correctly.

FYI, This guy is not technically a friend, more an acquaintance. I agree with you all on avoiding doing business with friends or family (especially lending money!)

I guess it's more complicated than it looks. if we set apart the capacity of the guy to repay me (that's a risk), I would need an official loan originator to do the paperwork and if he doesn't pay, foreclose on him. Seems too me like a lot of risk and hurdles for 15K at 18%..

@Bob E. @David Dachtera The back story I didn't tell, is that his wife max out all their credit cards and divorced him. That left him with all the bills that created this mess and destroyed his credit. He had a steady job, but could not get a loan from a bank because of his credit. That's why I was confident he could pay the note back. I'm not sure if he triec to make a payment plan with the Harris county tax office and I'm not sure they'll be nice and offer that as an option either.

@Pari Thiagasundaram, I don't think he would sell me his place for a 100k, he knows he could put it on the market and get the 160K. He's just trying to stay in his home and not have to rent another place. Thanks for quickly running the numbers and giving more insights on the note though.

@John Mattox, The foreclosure hassle is my main concern that's why I'm not sure it's worth the risk..

Thanks all for your replies.

Hey guys,

I have a friend of a friend who is desperate because he's about to lose his property because of unpaid taxes (2yrs of unpaid taxes, Texas). I would like to help him and maybe invest my cash in creating a note so he can pay his taxes and keep the house.

Some details: 

- He owns the property free and clear

- House is worth about $160,000.

- He owes about $15,000 in taxes to the county

I'm new to this and I wonder how to setup the note.. I was thinking loaning him the 15k and take the house as collateral. Is this a good idea or do you see any problems with this ? Seem too simple. 

I was thinking getting a lawyer to write up the note and make sure everything is kosher. Giving hime a rate between 16-18% with a monthly amount he'll be able to pay back.

Anything I should be careful about ?

Thanks for the help.

Hi,

The Houston market area inventory is a record low right now. The summer season was crazy with people moving into Houston and buying properties before the school starts.

As a buy & hold investor buying off the MLS, it's almost impossible to strike a deal since properties are sold in a couple of days with bidding wars. I also gave up on REO properties since the competition is so high.

How do you still find good deals and keep investing in this kind of market ?

Thanks for you insights.

Hi Sonny,

Are there areas that you completely avoid in Houston, or it all depends on the deal ?

Thank you very much for the thorough feedback, it's exactly the information I was looking for.

Hi Jacob and welcome on BP.

I'm a newbie like you so we share some of the same goals. I think you have the right mindset wanting to learn as much as you can, and it's one of the keys to success. Knowledge is power!

BTW what do you think of the Magnolia market area for investing ?

Good luck to you.

Hello Sakeena and welcome !

I joined recently, and few days after there was a BP meetup in Houston. It looks like they organise it every month. I went and had a blast talking to investors and newbies like me. 

It's great to learn and network, I highly recommend it. 

Apart from that I heard good things about RICH.

Maybe we'll see you next time.

That was my first meetup and it was a great time. Good to meet you guys, and thanks to the organizers.

@Erica Villarreal thank you for posting the picture !

See you next time !