All Forum Posts by: Logan Turner

Thanks @Sarah Ziehr. The comps i was given only shows the list price, of each of the 4 comps. In the top it does give the average statistic of the 4 sold properties as being (94 % of list price) however, it does not specify for each property, and maybe it is not important to. 

This may be a naive question, but here goes: When a realtor pulls comps from the MLS from properties that have sold or are under contract, it is just showing me the list price. This is not the actual accepted offer / sale price, correct? Is this information available? Country records? title company?

Thanks

 I definitely don't have your experience, and i don't question your insider knowledge. I simply get a little scared (not evidence based) when prices have been going up and up over the last decade; although, it does appear to be justified. I'm warming up to Odessa/Midland, not bullish, not yet. Maybe in a year. Prices are coming down and sellers are starting to realize that they can't get the price they thought their home was worth in 2013/14. Foreclosures are coming, desperate sellers are coming. Then oil will be back. Maybe 1 year, maybe 5 but it will be back. The city has done a good job on limiting new houses being built to prevent a crash like they had in the 80's. This caused a huge squeeze on the rental market and prices made SF look affordable. Rent is still strong due to the limited supply of quality rental houses (>1% of gross price). 

The value of the house doesn't mean much as long as it cash flows and you can maintain until the next boom. People are still moving here for jobs. It may go down fast, but it may not as well. Midland was ranked top ten places in the country for beginning entrepreneurs and got a diversity score of 67 (out of 100). SA got a score of 68. 

Anyways, just some of my thoughts on the market locally. It will always be a sub market here, but it does have some things going for it besides oil and its pretty landscape (sarcasm font)

Simply contrarian investing

I'm also over in midland and odessa and have a place out in DFW. All markets are strong. Each has its own advantage over the others. Austin scares me a little, it's been booming there for so long. SA has potential for great growth, but has 1 possible major red flag. DFW should still be strong for another few years. @Patrick Keely are you invested here in midland / Odessa? Multifam or SFR?

Thanks  @Brian C.

Rents are still relatively strong, but values on SFRs are down d/t no one buying. 10x gross rent is pretty close to where they currently are, but because the depressed market i think i can get better deals than that. Rent 1200-1600 (best and worst) for a house 3/2 around 120-150k asking price

@Kurt Kline

Hey Kurt, I've thought about the exact same thing. I'm able to save money fast, but would rather have the money doing something over 6-12 months, than sitting in a savings account. I looked into crowd funding and other hard money lending services, but haven't taken a dive yet. You can put like 5 k in for 8-15 percent return. Seems interesting. 

If you know the area you would want to invest in, why not try networking and syndicating on a deal or providing some money to a fix and flipper for a 6-12 month loan yourself? you could charge 1-2 points and 8-10 percent probably.  20-30 k is about what is needed for repairs. Just an idea. It will also give you more insight into the RE game.

 Nope, still 300-350k people living here, and 2500 babies being born every year. So we stay busy regardless, our revenues doesn't vary much. Which makes a high income even more beneficial when everyone else's incomes drop (unfortunately)

Yes it could be. It was taken out 15 years after the purchase of the home though, which makes me think HELOC. Its via BOA.

Not sure what a PPM is. Google shows maybe a private placement memorandum? I used county website info to find this info. Also, this person doesn't own any other property in the county or the next one over, so its a homestead and he would need some cash for moving / relocating to new living area. 

 I would prefer to own the property. My goal is to position myself with some buy and holds that cash flow in the current strong rental market and then cash out when the next boom occurs. 

So yes, i want to transfer title. Can this not be done with a refinanced or HELOC? The house was purchased in 1999, and actually 2014 (dec.) a loan was shown to be taken through BOA for 48k.

Would a sub 2 contract not work, where they keep the loan under their name, and we work out a financing option? Maybe 5-10k down, with the remaining payments spread out? Obviously a lot is dependent on whether the seller is motivated or not. If he wants full price in the current market, i'll just pass, I'm just looking for different ways to structure a deal for investor friendly terms. 

You hear a lot about get in on your terms, so I'm just curious to see what do people believe to be good terms. I'm sure it depends a lot, but for this situation, examples would help illustrate it better. 

Asking price 120k, i think it could be had for 110k. Might need 5k to be a solid rental, in pretty good shape already. Rent will be 1200-1700 (best and worst). I can put up to 40k cash on this deal, if necessary or beneficial. How would most proceed for a buy and hold approach?