All Forum Posts by: David Markette

In my opinion, a trailer sitting in the yard next door is an eyesore.  Some applicants would shy away from your (potential) rental property, due to the condition of the neighborhood.  One option you have is to speak to the owner of the trailer, and see if the trailer could be moved.  Get creative!

Hello @Robert McClellan, welcome to BP, and welcome to RE investing!  San Antonio is a great market for buying, holding, rehabbing, and selling.  What is it that you would like to accomplish?

Hi @Account Closed, check out listingspark.com.  They presented at an Austin investor's meeting not too long ago.  They are available in all of the major Texas metro areas.

Hello @Nicholas Renshaw, first of all, congratulations on taking action.  Many who are part of BP never get past reading posts.  Way to go!

There are a few things you will need to find out, by asking your seller:

1. "What would you like to have happen?"  You already got the answer to that question, which was that she wants to sell the house, and remain living there.

2. How far behind on the mortgage are you?

3. What is your monthly payment? Does that include taxes & insurance (PITI), or is that principal & interest only (PI)?

4. If we could put a deal together so that we buy your house, and allow you to remain living in the house, would you consider keeping your existing financing in place, with us taking over the payments?

There could be a considerable amount of equity in this deal. IF the market value remained at $549K, you're looking at a $175K spread. 2006 was the year before the "bubble burst"; check the MLS to determine the comparable sales for the property. If you don't have MLS access, find an investor-friendly realtor, and ask them to pull comps for you.

If the seller is willing to sell you her house subject-to the existing financing remaining in place, get a copy of her current mortgage statement.   You will need to know the details of the loan, and the amount the loan is delinquent (has she received a notice of default, or letters from an attorney?)  The amount of arrears will help you to determine whether or not it is worthwhile to buy this property, since the loan will need to be brought current when you buy the house.

Not to mention, IF the seller wants to live in the house after you purchase it, how much is she willing to pay each month to live there?

Ask lots of questions as you work your way through this deal.  Get good advice (do you work with an attorney in your area?  If not, start looking for one!).  Don't give up!!

Hi @Tonya Carraway, welcome to BP, and welcome to RE investing!  Stay connected, ask lots of questions, and be sure to take ACTION!  

@Joe T., as someone already posted, since you have only had the house on the market for one week, don't fret it yet.  Once you lower the price, you aren't going to raise it.  I have a 4BR house on Valley Trails, rented for $1125, so you are definitely in the ballpark.

When we are advertising properties, the first thing I do (after determining market rent for the neighborhood, using MLS), is I put a sign in the front yard, with our phone number. People who live in the area will call their friends and relatives. Don't underestimate the power of a "For Rent" sign in the front yard!

Next, I post an ad on postlets.com.  It is a free site.  Once posted there, your ad will be shared to about 50 RE sites, like Zillow, Trulia, Hotpads, etc.  I also post a copy of the created ad to Craigslist.

When the phone rings, answer it!  Be clear about your criteria for renting (felony history, minimum standard for income vs. rent amount), pet requirements.  BTW, that criteria should be in writing, handed to your applicants when they fill out an application.

The Great NW is a decent neighborhood in SA, a working class neighborhood to be sure.  Rentals are still scarce, especially now that school begins again in 2 weeks.  Do NOT be in a rush to pick someone just because they wave a couple thousand $$ in your face!  This is long-term relationship you are establishing.  Yes, you can evict tenants quicker in TX than in most states, but why take a chance with your $100K+ property?  SCREEN YOUR APPLICANTS THOROUGHLY!

Give me a call if you have any questions.

Hi @Brian Gibbons, thanks for sharing this alternative solution.  I have found that it is always best to have multiple solutions available to share with sellers.  Some might want the cash now, so that they can be rid of the house.  Others might want a little more, provided they are willing to wait for several months for the project to be sold.  

• Sphere of influence can provide many deals.  Do people know that you are in the business of solving problems, and providing solutions for difficult properties & situations?  
• Start networking with people in the business, if you haven't already done so.  Check meetup.com for the location of RE meetings near you.
• Drive neighborhoods, looking for houses that don't seem to be occupied or taken care of.
• Post signs, flyers, etc (in compliance with local regulations and laws, of course)
• Knock on the doors in neighborhoods where a house was recently sold.  Chances are high that one of the neighbors intends to sell soon.

These are just a few suggestions.  There is not one simple way to find deals.  They won't chase you down when you first get started.  If you build a relationship with people, treat people fairly and ethically, and strive to solve THEIR needs and not yours, you will have plenty of deals to choose from.

Hello @Kim Bishop, welcome to BP, and welcome back to RE! I am a rehabber and an investor in San Antonio.  Occasionally, I attend the Investor Underground meeting in the Austin area.  It is held the 3rd Wednesday of each month.  Check out meetup.com for details.  Learn what you can on the BP forums, and ask plenty of questions.

We bought our first two rental houses at a deep discount (around 50% of ARV), and financed the acquisition and rehab with hard money. We managed the rehab projects, and by the grace of God, refinanced them both with conventional financing. We hold both houses still, and have equity in each property. The story of this experience would make a great post some day...