All Forum Posts by: David J.

A portfolio loan won't help you get more Fannie loans.  They count the number of encumbered properties, not the number of loans.

You will have to get comfortable with commercial if you want to go big.  Or get partners to put the loans intheir name, but then you have the only ship that doesn't sail....

I look at the comps and price accordingly. If HUD homes are selling for 70K and my house in in the same condition I list it for 70K.

@Sam Elder 

I garee with your assessment about the benefits of wholesaling. I am a buy and hold. I was just pointing out that the value that is passed to the purchaser of a wholesaled property could be increased with some capital/connections. With a little more cash backing, the property could be closed and immedialtely listed on the MLS for maximum exposure. I am certain I can sell a property on the MLS here for more than I could wholesale it for.

@Ross Schneider 

I don't understand your question. When I find a deal I close it and either keep it as a rental or sell it on the MLS.

I have found that "good wholesalers" do not actually exist (unicorn style).In my opinion, the business model of wholesalers (get under contract and assign for a quick payoff) is not the max way to monetize the ability to find a good deal.I wholesaled my first property I found via direct mail and the second we closed I realized I just gave away (literally gave away) 20k.So I quickly found a better way to monetize the properties I found.

I believe wholesalers only exist until they find a better way (usually requires a little capital/connections) to monetize the deals (like means to an end).For example, after my first wholesale transaction, I made 9k and my buyer bought a property worth 95k for 72k.Who in the heck would not buy that!!The second I completed the wholesale transaction I thought to myself, "heck, I would have bought that from myself for 72k."

So once a "wholesaler" realizes there is so much money left on the table in the business model, they immediately look for ways to keep more of it.Some keep and rehab, some refinance out and hold as a rental, I close and sell on the MLS.My point is, wholesaling is a temporary job that happens until they have something better to do, which usually takes building up a little cash or making the right connections.That is why there are 1 million wholesalers and very few good ones.Because the second they are any good, they have enough cash or connections to find a better model to monetize the deal they found.Let's face it, finding deals is the hardest part of the game, and when someone gets even halfway decent at it, they are going to stop giving them to others until they have gotten as much blood from the turnip as their little hands can squeeze out.

The reason everyone is searching for a "good wholesaler" is because wholesalers are handing out free money.If you have the ability to find and give away free money, you won't be standing on the corner doing for very long because (i) you realize you are giving away money (ii) someone else will realize you are a leprechaun) and stuff you in their trunk.

@John Horner @Hattie Dizmond I find below market move in ready deals all the time in my market (Houston) through direct mail. Case in point, I just bought a house for 70k yesterday and listed it on the MLS last night and have an offer accepted for 98k. I spend a total of .4 hrs cleaning the exterior and sent professional cleaners over to give it a quick shine.

@Jon Holdman 

In my neck of the woods the appraisers need to see the sale price on the MLS to use a house as a comp. The sale price of the off-market deals I find from marketing do not get recorded. The deed is recorded so you can trace the transfer, but thereis no sales price recorded.

With that said,  my lender still only finances 85% of the lesser of cost or appraisal.

@Rich Nickel 

We paid $100 for the first list of 500 names. Now we make our own list using the MLS tax info.

You find a good deal.  They will come from every direction for a piece of it.

@Justin Brophy 

Here is a link to the map of Spring ISD.

http://www.springisd.org/docs2/publications/zonema...

Klien borders to the west and conroe ISD borders to the north.  You can google any of them and they have maps.  All three school districts include parts of "Spring, TX"

Good luck.  In my opinion, there are good investments in all three district.  You can made generalizations about all three, and I may or may not want my kids to go to any or all of the schools in each, but i can tell you I own great SFRs in all thee and I live in one of them.