All Forum Posts by: Daniel Hixson

im looking at flipping

Im looking to buy auction and preforeclosures that sell for around 120k after repairs. I live in south texas ans its considered one of the poorest area of the country. So most people buying are around the 80 to 150 range. What should i be shooting as far as my ROI. 10% seems too little based on all the investment and time and 20% seems to be closer to what i would consider acceptable. Am I overshooting here. What is your opinion on what should be a good return on a 100k investment and risk.

@Ron S. thanks. definitely made me reevaluate and talk to a RE Attorney before moving forward. Probably the best 200 I will spend on my re investing. 

@Ron S. Thanks so much this is exactly what I was looking for. It looks like it refers to Foreclosure Consultant as someone who offers some type of service for compensation to avoid or help stop a foreclosure. Im guessing it applies to wholesalers profiting from the situation. Im looking to actually purchase this properties from the homeowners before they hit the auction restore them and flip them. Im assuming this would not apply to me since I would not be a Foreclosure Consultant but rather an actual buyer. Am I correct in this? Im just wondering if there is a law or something that would prevent me from buying a distress home at near payoff or loan value before the auction. Maybe some regulation to prevent people from loosing equity by selling cheap? but so far ive found nothing. 

@Account Closed Do you include an agents fees and closing costs on that formula? Ive been talking to an agent to have him help me with my first purchase but ive notice between closing cost on buying preforeclosure and closing cost on reselling im wasting away about 10k. any tips or advice on these?

@Ron S. Very helpful post. Do you know by any chance if Texas has any regulations regarding wholesaling or approaching distressed homeowners. Ive searched everywhere and only thing ive found is there is no redemption law for trustees sale and up to two years on homestead tax sales. Im not looking to do wholesale but actually buy homes preforeclosure fix em up and flip them. I just want to do it the right way now that im starting out.

Op sorry didn't mean to hijack your post. The more info the better for all. 

Research with a title company or on your own. You dont want to buy and then find out there is another lien against the house for alot more.

So I finally found a knowledgable RE agent. All the other I talked to before were confused at what I was trying to do and how I wanted to buy homes that were not listed or were in preforeclosure. He pretty much answered all my questions and has been giving me tips on what to look for. I am not looking to wholesale, I just dont think thats for me right now that im starting out. But im looking to actually buy this property homes at around 70% emv Do a bit of remodeling and reselling.

I would like to get started investing on real estate. Ive looked at several auctions and while they have good deals. Ive noticed is possible to approach a home owner and work something out with them before theyre foreclosed. My question is if I were to come to an agreement with a distressed home owner. whats next? Do I need to pay their loan or how is it transferred to me. Ive tried contacting foreclosure re agents and all of them looked at me like they have no idea what im talking about and the rest don't feel comfortable with anything other than dealing with a traditional listed home. BTW this is in Texas. Ive also contacted a few RE Attorneys and they want to charge 200 just to talk to me even though I don't have a deal yet.