All Forum Posts by: Effram Barrett

I was prospecting a lot that was for sale last year via FSBO on Zillow, but the owner said he never had it for sale. Fast fwd 2 months when I followed up with him, he said the title company contacted him because his name is obviously on the deed that someone was trying to sell his lot without his consent or knowledge.

The fraudulent seller would have made 50K from the sale and the buyer thought they had a steal (no pun intended) purchasing the lot, but luckily the title company was on their A game. In TX, the majority of transactions go through title. I can see how FSBO's can be seen as scammy but there are ways to mitigate that.

If you're finding off market deals deals with a decent spread, then that's at least a win. Houston is an awesome market to invest in, and someone above mentioned short term rental which typically do very well. Another niche that flies under the radar is housing voucher (formerly section 8) There is a negative stigma attached to it, but the returns can be pretty good as well. Properties are based on zip code tiers so if you find a great property in a zip code that pays well, that's a win. There are more hoops to jump through, with the city having to inspect the unit etc, but it can really jump start your portfolio once you get past the red tape. 

If you need anything, don't hesitate to reach out. I'd love to hear about how you're finding off market deals as well.

@Rene Montelongo

Sounds like you got some solid advice but I'm surprised your HML lender doesn't offer conventional lending once your rehab is done. Check that option first and if they don't offer conventional financing, you would need to go th Non qualifying mortgage route

@Vu Trinh

There is an appraisal district that determines the value of your home for tax revenue purposes. It is completely separate from the appraisal with selling/refinancing a home

@Zack Berridge the county usually allows up until April or May to protest but I don’t think they’ve posted the appraised values yet. I would say be on the lookout soon for the appraised value in the mail or just check online periodically. It’s a super easy process to protest. I’ve won almost every time I’ve protested

@Vu Trinh I’m not 100% sure how it works in Dallas but Houston has a tax rate that is multiplied by that appraised value of your home.

As far as protesting, the county appraisal district can say my house is worth $260,000 which means higher taxes. I can submit documentation saying my house is only worth $220,000 and they will usually make a decision shortly after that. I had my property appraisal lowered by 20 grand just sending in comps and they honored my request. That’s my homestead tho so idk how it works with investment properties

I would have to read the entire section but from your excerpt, it seems like they would reimburse you for the bare minimum. The second portion seems like repairs for assessments etc but I don't see language that protects you from value add costs.

I was thinking this person must be in TX before the thread even opened. Property taxes in Harris county are a challenge to say the least. I’m not sure if you protest your taxes on rentals but I did for my primary home. I would possibly start there

@Thor Fink

You’re missing what Bruce is saying about the redeemable period.if you buy a tax delinquent house in TX, the original owner has up to 2 years to redeem it for the price you paid the taxes for.

For example let's say you purchase a property for 35K at the auction and 2 months later you put in another 60K into it for upgrades. The ARV for the home is now 225K. The original owner could go and pay the 35K tax lien that you purchased the home for and redeem it. You would lose the 60K you put into it and any other interest. You would get your 35K back plus 25% for the 1st yr and 50% for 2nd yr but that's about it. Basically what Bruce was saying is wait at least 2 yrs before you put any serious money into it so they can't redeem the property.

Why don't you do a subject to? You would have to check with the bank to make sure it's assumable, and also have the funds to make the loan current. You could inform the seller that you would make the loan current, and also offer money to move or for any needed expenses. Make the deal a win-win and you'll be good