All Forum Posts by: Daniel Wrentz

Hi BP,

I am concerned about triggering the Due on Sale clause with seller financing for a buyer (a wraparound loan).

If I setup a financed property in an sub-LLC, could I bring the buyer on as a partner and set up a contract where he buys the percentage of that LLC over a set term? Basically there would never be a transfer of title, just the buyer buying out the llc that owner the asset.

Thanks. 

@Jobin V.

Call all of those “we buy houses” signs, those are typically wholesalers

@Cortney Arenstein

You’re right, that’s just what the agent told me after the bidding closed.

I did not care for the process and doubt I’ll be dealing with them much the future.

I see the same with them in Houston. I went to look at a flip a week or two ago. The ARV I found with an agent was 266k and the asking was 175k. But after seeing it, the house needed a lot of work and the repairs came in over 50k, putting me no where near the 175k asking.

Being 50 people showed up to see the house I minimized my profit and put in the bid. But somebody paid OVER asking (30k over my bid).

My only rational is that these are owner occupants, landlords not caring about equity, or just people being taken advantage of. Any way its astounding.

I spoke with another big wholesaler here and was told they are aiming for 80-82% minus repairs. Small margins for flippers.

Hi Matthew, thanks for that.  I am in the northwest quadrant, Spring, Cypress, Tomball, Katy, The Woodlands areas. 

Hey Houston,

I am breaking into the fix and flip scene in Houston and would like to hear from others flippers to get a feel for the rehab market here. Any tips will also be appreciated.

Thanks in advance.

-Daniel

@Nick Zahneis that was actually an off market wholesaler deal I looked at. Looked at another wholesaler deal today, but asking was 270k, repairs 45k, and arv was 370k. I can’t see how these “85% rule” deals are worth it. Thanks and good luck out there.

Nice.  What were the repairs and how did you find this deal?

I'm seeing the exact same in Houston. Went to look at flip the other week and 50 people showed up. I minimized my profits, put in my max bid, and somebody out bid me by more that 30k.

@Salvatore Lentini I can’t seem to find a flip that meets my numbers. Here in Houston the market seems to follow an “80-85% rule”. I’m not sure how others are making that work. At those numbers I could make more wholesaling.