All Forum Posts by: Andrew Farmer

It seems like that would be a pretty good rental market with the older houses and the chemical plant right there. I don't have any numbers to back it up but it seems like there would be a demand for rent homes and a pretty good ROI for that price point.

Well said! @Karen Rittenhouse

Hi Summer,

I am from Houston as well and my primary source for leads is Real Acquisitions. It's a local subscription site that allows you to search for lists of different distresses, search for comps, skip trace for owners phone numbers, ect. Check it out, they will give you a free trial.

As far as finding buyers, hands down the best resource is networking. It sounds cliché but if you find a good deal and put it under contract, you will have NO trouble finding a buyer. Feel free to send a message if you would like specifics on anything.

Welcome, best of luck to you!!

...wouldn't miss it!

It probably not a good idea to get a conventional loan since you're name & credit will be attached to the 1st lien. You'd be much better off getting the seller to "seller finance to you" then turn around and "owner finance" to an end buyer. I target "subject to" properties to owner finance. If you have to buy it for cash, then get it at a really big discount and find a private lender that will allow you to wrap the note. That way the private lender to you is in 1st position, and the note with you and the end buyer is in 2nd position.

Also, there's really no need to rehab it after you buy it. At most I'd just clean up any junk left behind and let the end buyer fix it up. That way "they" go over budget fixing "your" collateral.

I'm a big fan of Drew Shirley

http://drewshirley.com/

Instead of buying a house at 70% (minus repairs) and putting an underlying loan in your name, try to find deals with seller financing or subject to. You could pay cash for a loan if you have private money, but if that's the case try to get a deal at a MUCH deeper discount to protect your private money investor. Also, instead of fixing a house up and selling it, just sell it "as-is" with owner finance. Have the buyers take care of it and let THEM go over budget on YOUR collateral.   

@Steve Vaughan

I love it! Those kind of deals open up a whole new ball game for buying. Do you have any language in your contract that says that you can wrap the mortgage and sell the property with owner finance?

hey @Steve Vaughan,

I appreciate the response! For those seller carry back deals of yours, are they fully amortized? Are the first few years of payments interest heavy or are the P & I getting paid down evenly throughout? I haven't done a seller-financing deal yet but the more I read up on it and talk to people, the more exciting it sounds.